Successful business models for delivery of dairy...
Transcript of Successful business models for delivery of dairy...
Successful business models for delivery of dairy
genetics to smallholders
National Dairy Development Board
The Case of India Kamlesh Trivedi
Production of quality genetics
- Define breeding goal –define what is “Best” animal - Build infrastructure to identify “best” animals: . Progeny Testing (PT) . Pedigree Selection (PS) . Open Nucleus Breeding System
Set SOP & MS Set evaluation mechanism
Certify
Production of quality semen
- Use only best disease free bulls - Follow SOP & MS for semen processing - Comply with bio- security measures
Set SOP & MS Set evaluation mechanism
Certify
Providing quality AI services
- Provide AI service at farmers’ door-step - Maintain LN system - Use best semen & follow SOP - Identify inseminated animal & record all events
Set SOP & MS Set evaluation mechanism
Certify
Characteristics of a good business model for AI delivery Breeding
Policy
Maintain a live computerised database, use information, improve
Approach to decide Breeding Strategies in different regions Target base breed
Harsh Environment* Favourable Environment**
Farmers with Poor Resources
Farmers with Good Resources
Farmers with Poor Resources
Farmers with Good Resources
Cattle Non-descript Upgrading with Local or Outside Indigenous breed
Upgrading with Local or Outside Indigenous breed or CB< = 50
Upgrading with Local or Outside Indigenous breed or CB=50
CB=50
Well-defined indigenous breeds
Selective breeding within breed
Selective breeding within breed
Selective breeding within breed
Selective breeding within breed
Crossbreds CB<50 CB=50 CB=50 CB>50
Buffalo Non-descript Upgrading with Local or outside breed - Mehsana or Murrah
Upgrading with Local or outside breed - Mehsana or Murrah
Upgrading with Local or outside breed - Mehsana or Murrah
Upgrading with Local or outside breed - Mehsana or Murrah
Well-defined indigenous breeds
Selective breeding within breed
Selective breeding within breed
Selective breeding within breed
Selective breeding within breed
* Harsh Environment:: Poor vegetation, low rainfall and high temperature-Humidity Index (> 90) ** Favorable environment: Good vegetation, medium to good rainfall, moderate Temperature-Humidity Index (<90)
3 Exit
Infrastructure of AI in India Activity Unit NDDB
Managed Coopera-tives
Gover-nment
NGO Private Total
Production & supply of Genetics
No. of PT Programmes
7* 2** 1** 10
No. of PS Programmes
2* 2
No. of ONBS 1 1
Production of Frozen Semen doses
No. of Semen stations
2 8 37 1 2 50
No. of doses produced in 2010-11 in million
12.08 12.37 33.54 7.56 1.22 66.77
% to total 18.1 18.5 50.2 11.3 1.8 100.0
AI Delivery No. of AI Centres 1394 16,625 46,191 4041 14,003 82,245
No. of AI done in 2009-10 in million
1.0 11.3 29.0 2.47 5.9 49.7
% to total AI 2.0 22.7 58.4 5.0 11.9 100.0
* NDDB implements in collaboration with cooperatives; 3 are > 10 years old, 4 are about 3 years old ** More than 10 years old + NDDB implements one in collaboration with cooperative and other with a Trust
7 existing PT and 2 PS programmes implemented by NDDB with cooperatives/ trust and another 3 PT - 2 by state governments and 1 by NGO - are supplying about 15-20% of the total about 2780 bulls used for semen collection by 50 semen stations.
These 10 PT and 2 PS programmes are to be scaled up to17 PT and 9 PS under National Dairy Plan (NDP) to be funded by WB ensuring supply of 100% of bulls required for replacement by all semen stations by the terminal year of NDP I - 2016-17.
Supply of genetics is considered as public good and is proposed to be funded as grant under NDP
Each PT and PS programme will sell bulls and create fund and is expected to be self sustainable in ten years
Production and supply of genetics
• 50 semen stations are producing 66.8 million doses from about 2780 bulls
• Top 10 stations produce about 53% of the doses and top 25 about 80%
• Plan is to have some 30 semen stations to produce targeted 100 million doses by 2016-17 and 140 million doses by 2021-22 under NDP
• Each semen station could be self sustainable once it reaches a production level of ( say 2.0 million doses per year) and generates revenue by selling its semen doses
Production and supply of semen doses
82,245 AI centres carry out 49.7 million AIs
56% of total centres in government sector; carry out about 58% of total AI; mostly stationary
20% centres in cooperative sector carrying out 23% AI; mostly mobile
24% centres in private/NGO sector carrying out 19% AIs; mostly mobile; major private AI Service Providers operating in multiple states include:
BAIF, JK Trust and IndiaGen (NDDB Subsidiary)
In all about 25% of breedable animals are artificially inseminated
Under NDP, plan is to carry out 95 million AIs inseminating 35% of
breedable animal by 2016-17 and 135 million AIs to inseminate 50% breedable animals by 2021-22.
AI Delivery
Pvt.
Semen doses & LN
DCSs Govt. Pvt.
…
…
DCSs Govt.
Semen Bank-Milk Unions
Centralised GCMMF Model
Semen doses LN
Semen station
AI Technicians AI Technicians
AI Service Provider -Semen Bank
Govt./Union/Pvt.
DCSs / Govt./ Pvt.
AI Technicians
LN
Semen doses
Semen doses & LN
Individual AI Service Provider Model
•Each AI Service Provider goes to Companies producing LN •Brings in LN in transport containers or road tankers •Buys semen doses from semen stations •Supplies LN and semen doses to individual AI Technician •Landed cost per litre of LN to AI Service Provider at Semen Bank works out to Rs. 12-20 depending on distance
•GCMMF contracts with an LN supplier •LN supplier supplies LN at district level to Milk Unions in LN SILOs •Unions procure semen doses from semen stations •District Union in turns supplies LN and semen doses to all its field AI centres •LN cost per ltr to district union works out to Rs 8-9 • Union also sells LN to other AI service providers in the area at Rs 9-10 per litre
LN Supplier LN Supplier
Have their own semen stations
Obtain bulls from their state farms and field
Produce semen doses at their semen stations
Procure or produce LN
Supply LN and semen doses to their own field AI centres, which are mostly stationary
Government employed AI technicians provide AI service
At government AI centres farmers are charged Rs. 20-60 varying among different states.
Additional fees charged for door-step service depending on distance
Cost of AI to government is estimated to be around Rs160-180 per AI; the major cost
component is salary
All State Governments
Genetics and AI delivery model in Government Sector
Genetics and AI delivery model in Cooperative Sector
135 District Cooperative Milk Unions provide AI services
3 District Cooperative Milk Unions and 5 Cooperative Federations have semen stations
Milk Unions buy semen doses and procure LN and supply LN and semen doses to their own
field AI centres, which are mostly mobile
AI technicians are either hired/engaged by village cooperative societies or District
Cooperative Milk Unions
Farmers are charged Rs. 5-100 varying among different milk unions
Cost of AI to milk unions is estimated to be around Rs100-120 per AI; the major cost
component is salary
Cooperative Sector
NGO Private
BAIF J K Trust
• Work in collaboration with state AH depts., milk feds, other govt. sponsored agencies •Operate based on funds received from these agencies •Charge farmers for AI as agreed with sponsoring agency. It varies from Rs. 30-60 per AI
Indiagen (NDDB’s
subscidiary IIL) Hatsun Nestle
Genetics and AI delivery by NGO/private AI Service Providers
•Provide AI services through hired AI technicians generating their resources by direct charging from farmers. •AI charges vary from Rs. 100-150
Cost of AI to NGO/Pvt. is estimated to be around Rs150-170 per AI; the major cost component is salary
Private AI Service Provider Model of engaging AI Technicians and generating revenue through direct charging from farmers seems to be effective in high potential areas; some good practices include:::
- One AI technician for 2000-3000 breedable animals
- Assignment of 5-6 villages in radius of 10 km
- Minimum education for AI technician: 10+2
- AI Training certificate from recognised training institute
- Service at farmers’ door-step
- Fuel allowance based on AIs done
Effectiveness of AI services to smallholders
Effectiveness of AI services to smallholders – (contd.)
Animal identification and recording all events – AI, PD, calving, calf born
A supervisor for every 12-15 AI technicians
Recovering full cost of AI directly from farmers
Proving additional products and services useful for enhancing productivity – mineral mixtures, other feed supplements, de-wormers, vaccination etc.
Veterinary assistance in case of infertility problems
Private/NGO AI Service Provider Model of engaging AI Technicians and providing AI services initially at subsidised rates and receiving assistance from sponsoring agency to meet initial deficit seems to be effective in low potential areas.
Following of all good practices of private AI Service Model except AI Charging strategy of gradually raising price instead of charging full cost from the begining
Evidences of impact of good practices
• 4 large Progeny Programmes have come up
In last three years
• Total semen sales of 2 largest semen stations have increased by 14% annually in last 3 years, and their sales to private AI service providers have grown by about 30% annually
Demand for quality semen is
growing
• In last three years it has grown annually by 5%
Infrastructure for AI expanding
fast
Evidences of impact of good practices (contd.)
• Grading of semen stations by GoI has remarkably improved:
Grade Year 2005-6 2007-8 2010-11
A 7 12 20
B 10 15 17
C 5 7 3
Not graded 32 15 7
Total 54 49 47
• Conception rates on all inseminations basis in well-run AI operations have reached 40%
Role of different organisations
• Implementation of PT/PS programmes by large semen stations operating in native tract of a particular breed, and their supplying quality genetics of the breed for the entire country
Supply of Genetics
• A few large semen stations can produce the required high quality disease free semen doses, instead of many stations each producing small quantity
Production of high quality semen doses
• One organisation in each state can coordinate a centralised LN distribution system to provide LN to all AI service providers within state
Supply of LN
Role of different organisations (contd.)
• A level playing field for all forms of institutions needs to be created to provide AI services to farmers at their door-step, and expand their operations
AI Delivery
• An independent organisation not having any commercial interest can be entrusted to pool minimum data from each genetic improvement programme, semen station, and AI service providing organisation and generate industry level information and share it with all stakeholders
Central Industry level
Database
• The Central and state governments can provide a regulatory framework for industry to grow harmoniously on sound scientific principles
Regulation of breeding services
Sustainable services for AI
In long term, large semen stations can evolve sustainable genetic improvement prgrammes for production of quality genetics for the country; they however would need to be supported initially at least for 5-10 years by government.
Large semen stations in co-operative and private sector can become self sustainable with attaining a certain level of operation and independence on price fixing
AI Service Providing Organisations can be financially self sustainable with each AI technician carrying out certain number of AIs and able to charge AI service, which covers cost of AI plus small margin of profit: with current costs 100 AIs per month per technician and charging Rs. 150 per AI would make both AI Service Providers and AI Technicians self sustaining
Some of the “worst practices” •Selecting males for semen
production based on one or two daily records of mother; putting less than 10 bulls under test and evaluating bulls based on less than 30 daughter records under progeny testing programme etc.
Genetics
•Supplying semen doses with post-thaw motility less than 50%; not ensuring bulls’ disease free status for TB, JD, brucellosis, IBR etc.; colony forming units in processed semen more than 5000 CFU per ml etc.
Semen production
•Not ensuring LN level in container; carrying semen straws in pocket; not measuring temperature of water before thawing; inseminating animal without consideration of time of initiation of heat; depositing semen just at the tip of cervix; damaging animal during insemination etc.
AI delivery
“Make or break” factors affecting semen delivery
• For different breeds for producing quality genetics
Establishment of genetic
improvement programmes
• To produce disease free semen doses Bio-security measures at
semen stations
• As cost of LN to AI Service Provider is much higher when LN is procured independently by each AI service provider compared to one agency meeting needs of all AI service providers
Establishing a centralised LN delivery system
“Make or break” factors affecting semen delivery
• Under pricing by state governments and cooperatives AI service charges
• To provide quality breeding services to farmers at reasonable cost and ensuring a steady genetic progress in the population
Regulating bull production, semen production and AI
delivery
• On an individual animal basis and generating information for all stakeholders
Collecting required data
New technologies
Sexed Semen
• Cow slaughter is banned in most states and cattle males are losing utility particularly crossbred males
Embryo Transfer
• For bull production - to exploit limited high producing animals within breeds
OPU and IVF
• These are very relevant as costly hormones need to be imported for conventional ET work
Genomics
• For “Whole Genome Selection Procedures” - wide bio-diversity, huge animal population and limited infrastructure for performance recording in the field
Key legal and regulatory pre-conditions for ensuring private sector AI delivery
•Sets minimum standards, puts in place evaluation mechanism and certifies bulls, semen stations and AI Service Providers
•Proposes to establish an Independent Authority for Registration of Semen stations and bulls at the national level and State level Independent authorities for registration of AI Service Providers and Recognition of AI Training Institutes
Draft Bovine Breeding Bill –to be made into law
expeditiously
• It should not be within the ambit of Indian Veterinary Council Act, 1984 and should not be included as minor veterinary service
Artificial Insemination
Conclusions
Led by rising demand for milk, raising productivity is an imperative need
Building infrastructure for supplying quality genetics for AI should be the key focus area for improving productivity; at this stage genetic improvement should be treated as public good and fully funded; large semen stations should be entrusted to implement genetic improvement programmes making them self sustainable in 5-10 years.
Modernizing and expanding semen production infrastructure with added emphasis on quality control and bio-security measures is the other key focus area; large semen stations could be self sustainable with their independence on deciding semen prices
Conclusions….. More professional AI service providers to be encouraged to increase % of breedable animals inseminated; a level playing field needs to be created for private AI service providers by advising state governments and dairy cooperatives to provide AI services at prices that cover their actual full costs
An independent agency needs to be set up for pooling certain essential industry level data and also for estimating breeding values
A legislation is required for regulating bovine breeding activities including use of breeding bulls, production, processing, storage, sale and distribution of semen, and AI services