1_Mongolia Bangladesh Dugdill

8/3/2019 1_Mongolia Bangladesh Dugdill

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Improved market access andImproved market access and

smallholder dairy farmer participationsmallholder dairy farmer participation

for sustainable dairy developmentfor sustainable dairy development(CFC/FIGMDP/16FT)(CFC/FIGMDP/16FT)

Asia-Pacific Smallholder Dairy Strategy Workshop

Chiang Mai, Thailand : 2529 February, 2008

Se lect ed sm a l lho lde r d a ir y in g ex per iences

f r o m Bang ladesh and Mong o l i a

Tset sgee Ser-OdD i rec to r Na t i ona l Da i r y Pr og r am m e

Mongo l ia

Muham m ad Mus ta fa Hussain Gener a l Manager

Gram een Motsho O Pashusam pad Foun dat ion Bangladesh

Br ian Dugd i l l Da i r y Developm ent Consu l tan t

FAO


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Background: whyBangladesh & Mongolia?

Innovative features of

selected smallholderdairying models:

milk production

market access

Comparative lessons

Presentation

outline

Bangladesh

Bangladesh

Brian Dugdill (February 2008)


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Geography overview

2 very different countries?Bangladesh Climate: hot, humid, tropical, high rainfall

Flat, rich alluvial soil, abundant water, 3 rice crops/yr Disaster risk: high -regular flooding & periodic tsunamis Population : 140 million (25% urban)

population density : over 1,000/km2

48% - below MDG income poverty line ($1/day) 30% - under-nourished

Mongolia (land locked) Climate: cold, semi-arid, extreme continental, low rainfall Vast rolling steppe grassland (70%);


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Overview

2 very different countries? Bangladesh:

verdant land of orange sunsets

as signified by its flag

Mongolia:

land of the blue sky

it may be cold for most of theyear but more than 300 sunnydays

Both have dairy sectors dominated

by smallholders

FAO recently involved insmallholder dairying in bothcountries!


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Milk productionBangladesh: sm a ll h o l d er s d o m i n at e (often landless) 15m households produce

more than +95% of milk cows & buffaloes milked (24 million) stall feeding (land scarce) producer orgs: village co-ops & village groups

Mongolia: sm a ll h o l d er s d o m i n at e (herders/peri-urban households) 85,000produce 90% of milk, but more intensive dairy farms growing rapidly

cows, yaks, mares, camels, goats, sheep milked (40 million) extensive grazing (land plentiful) herder-extended family groups

Main constraints to improved productivity & profitability at thesmallholder level are basically the same:

enhancing feeding shortage of improved stock

insufficient knowledge for raising management skills


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Mongolia

Dairying snapshot - market access Milk availability: 134 kg/capita/yr (rural=200kg : urban=50 kg)

Market: 95% informal traditional products very important formal market growing rapidly (imports dominate formal market)

Pre-1990s: State collective farm-collecting-processing system

self-sufficient in milk & dairy products

Post-1990s: transition from state-run to market economy very nearlydestroyed dairy sector State collective dairy farms & milk processing combinats collapsed cheap dairy imports, both finished products & reconstituted sold as local

produce - until very recently swamped urban market tax system favoured imports

Today (2007) - 12 milk processors: 10 buying domestic milk 2 with business models - recombining SMP & veg. oil into UHT milk

Mongolia-China joint ventures (?)


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Mongolia

dairy industry revival The problem

Industry collapsedfollowing transition fromstate-run to marketeconomy in 1990s

Imports soaring in

urban areas - 95%formal market

The solution Support from Japan &

FAO to kick start re-building the dairyindustry

The Mongolia dairy foodchain model


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Dairy sector

revival strategy agreed

based on:

complete sector-wide dairy foodchain approach cow toconsumer

careful selection of partners &

collaborators for cost-sharing themodel dairy demonstration units

consistent with current Food &Agriculture policy & GovernmentNational Plan of Action

taking advantage of the keyopportunities available to theMongolian dairy industry toovercome the present constraints

Mongolia-Japan-FAO/UN Dairy Food Security project(GCSP/MON/001/JPN)


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Implementation (Oct. 2004 - Sep. 2007)

- organised into three thematic programmes

1) Milk Production Enhancement- profitable cows, clean milk

2) Milk Marketing Enhancement(incl. collection & processing)- quality, affordable milk & dairy products

3) Dairy Training Programme- establishing a national Dairy Training Centre- updating skills & knowhow

Focus:on innovation, milk quality & capacity building ina commercial setting by demonstrating

modern technologies new equipment vocational short course & outreach training at

NDTC & in the field



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Flexible, integrated dairy chain m o d e l with practical & affordablei n v est m en t pack ages (modules) for each stage of the dairy foodchain: 6 modules 16 in operation (2007)

Herder/dairy farmer Milk producer-herder groups

Dairy Service Centre+ dairy cow breed scheme

consumerQualityControl

Milk CoolingCentres

Milk processing

One-Stop

Dairy Sales Centre

quality

quality

quality

quality

Milk collector

1 2

4

3

45

6

4



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Cheese making, collection & marketing model(a) natural fresh Gouda, Cheddar & Yak chesses (b) processed cheese

Rem ote a r eas Cheese making & collection fromherder groups out on the steppe



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Mongolia models:

key lessons & innovative features public-private sector partnerships & investments, tax incentives dairy cow genetic and breed improvement scheme, AI using

imported Simmental semen from young tested bulls retail outlets where processors join to sell their products,

including certified raw chilled milk and traditional products atone-stop milk sales centres,

generic milk branding, labelling & advertising

public-private sector partnership school lunch programmebased on local milk, supplied by local dairy enterprises

working with the food standards and inspection authorities toset realistic but safe standards and to train and certify milkinspectors, dairy operators and traders.

permanent & commercial National Dairy Training Centre atthe Food Technology College in Ulaanbaatar, which providespractical, vocational and outreach/field training for each of themodules.

Dairy Steering Group of Mongolian Food Processors Association

to represent & promote the dairy industry


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Generic milk branding, labeling & marketing

Mongolian milk for health & wealth!

Educating consumers about thedifference between:Quality fresh Mongolian milkImported old milkFocusing on next generation

milk consumers - children


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Progress (at Dec. 2007) & outlook to 2010

Formal dairy market (million litres LME)

0

1020

30

40

5060

70

80

90

1990 2003 2004 2005 2006 2007 2008 2009 2010

domestic milk

imported milk

Source: MOFA and FAO project

------ target ----------------------------------- actual -----------------------------



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Bangladesh

Dairying snapshot : market access Milk availability: 19 kg/capita/yr

Market: 95% informal traditional products important

formal market growing rapidly (imports = 50% formal market)

1980s/1990s huge imports of cheap milk/dairy

products (from subsidized production in the west) helped develop market

set back development of domestic dairy industry as local milkcould not compete

Today (2007) milk processors: 20: - 18 since mid-1990s

3 with business models based on recombining SMP & veg. oil intoSCM (sweetened condensed milk)


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Bangladesh: UNDP & FAOhave long been development partners in the dairy food chain

Milk VitaBagharbarighat Dairy

Milkshaw distributor coops 1974-1988: setting up the MilkVita dairy co-operative model

(with LGRD & DANIDA) 1999-2005: setting up the

CLDDP integrated fish-crop-livestock dairy model (withGrameen Bank)

2002-2005: setting up thevocational Dairy Training Centre atSavar (with DLS/MOFL)

2005-2006: updating NationalLivestock Policy (with DLS/MOFL)

Lesson: smallholder dairyingneeds long-term commitmentfrom all stakeholders & partners

Find coops pic

Milk producer coops

Milk Vita coop model

GMPF-UNDP-FAO Community Livestock & DairyDevelopment project (BGD/98/009)


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Bangladesh: CLDDP model

the constraints & the solution

Gram een Mo tsho ( Fi sh ) Foun da t ion i n 19 98 Not-for-profit sister organisation of the Grameen Bank

Inland fish farming with poor people since 1980s Works through grass roots Village Group/Village Centre system Profits from fish sales shared 50 : 50

Th e p ro b le m s How to increase Village Group Member (VGM) earnings from fish? (USD 70 p.a.)

How to improve productivity of fish ponds? How to improve nutrition & involve more women?

The so lu t i on? Add l i vest ock t o t he f i sh fa rm ing sys tem Livestock to provide products for home consumption & sale

Livestock to provide dung to fertilise fish ponds to improve productivity Livestock to shift the focus on women UNDP/FAO project support introduction: Community Livestock & Dairy

Development Project (CLDDP) (1999-2006)

I n 200 3 GMF becam e GMPF Gram een Mo t sho O Pashusam pad Founda t i on

t he Peop les Fi sh and Lives tock Foun dat ion GMPF-UNDP-FAO Community Livestock & Dairy

18Development project (BGD/98/009)


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Grameen Bank CLDDP ModelCommunity Livestock & Dairy Development model

VGM-SmallholderLivestock-based

Enterprises

Village Groups

CommunityLivestock

Services

CommunityCredit

ServicesVillageCentres

CommunityFeed

Mills

CommunityDairy

Enterprises

Rural& Urban

ConsumersGMPF-UNDP-FAO Community Livestock & Dairy

Development project (BGD/98/009)


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Grameen Bank CLDDP Livestock Loan packages

VGM-smallholdersselect loans from9 package menu


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homesteads

milkcollection

point

Community dairyCommunity feed mill

Pasteurised Milk

homesteads

milkcollection

point

milkcollection

pointhomesteads

Grameen BankCommunity Livestock & Dairy Development Project

(CLDDP) model

-consumers-markets

litre litre litre

communitylivestock centre(services/inputs)

GMPF-UNDP-FAO Community Livestock & Dairy development project(BGD/98/009)


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Grameen Bank CLDDP model

selected outcomes & benefits (1)VGM-smallholder numbers:

Increased from 3,500 (1998) to 9,000 (2007)

85% new VGMs are women

taking outreach (field) training programme to villages makes thetraining more accessible for women

Change in VGM status (1998/2005)

net earnings up 650% : $388 (2005) v $70 (1998) - excluding sale ofanimals

71% VGMs now select dairy cows/heifers, because returns highest -pay off loans quickest

value of household assets up 145%

Dung is used three times:

to produce energy (bio-gas) for cooking & lighting

to fertilise fish ponds

to fertilise crops


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Grameen Bank CLDDP model

selected outcomes & benefits (2)

Milk consumption by VGM households

1998 nil 2004 >0.5 litre (78%);

1.0 litre (22%)

VGM Households reporting having sufficient food

1998 58% 2004 98%

Milk quality: processing dairies pay premium for CLDDP milk,

because compositional and keeping quality reliable


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Crop residuesWeeds

FeedMills

P ou l t r y - - - - - - - - - Ducks

Bi o- d i ge st e r

Livestock

Feed

Cat t le - - - - - - - Goats

Meat Mi lk Cook ingFuel

L igh t i ng

Pond

M anur e

Draught

Duckweed /Aquatic Weeds

Fish

Fertilizer

Sludge

PestControl

Poultry/Duck feed

Eg gs Meat

Fodder

PaddyHo r ticu l t u r e

Grameen Poor Peoples Fish-Crop-Livestock Farming System

Outputs

Loanpackages

Simple visionWell integrated

Complex execution



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GMPF-UNDP-FAO Community Livestock & Dairy Development project (BGD/98/009).


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Both countries have

school milk programmesBangladesh Pilot programme Based on imported milk

powder, centrally recombined& distributed (packed in UHTcontainers)

potential to distort localmarkets?

Mongolia national programme -300,000

children (piloted 2006/started2007)

public-private sector

partnerships local milk provided by local

herder-smallholders Locally processed & delivered


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What next? Scaling up: both countries have large locally funded

programmes to scale up the models Bangladesh: largely through NGOs & private sector, incl.

Grameen-Danone social dairy ventures

Mongolia: under National Dairy Programme (2007-2015)

Improved dairy stock: both countries receiving

support from small FAO TCP projects: Bangladesh: will start 2008

Mongolia: started Jan. 2008

Dairy cow feeding & capacity building: Largely through outreach training under both National

Dairy Training Centre programmes


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Dairy development coordination

(strategies, policies, programmes) Bangladesh:

Government, NGOs & private sector pursue separate

agendas Government supervises dairy cooperatives (Milk Vita) NGOs and private sector left largely to own devices Bangladesh does not have a dairy policy, plan or

programme

Mongolia: Government-private sector partnership Government policy facilitates: legislation, standards,

inspection, tax incentives

Private sector lobbies & implements through Dairy SteeringGroup of Mongolia Food Producers Association Mongolia has 10-yr dairy development programme (2007-

2016)


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Comparative lessonsIf smallholder dairying works in such harsh & different environments,

it should work in most between situations where marketsdemand quality products & smallholders produce milkcompetitively & access markets!

Success came from: building on existing structures & involving private & NGO sectors adapting and tailoring modern dairy technologies and systems to

the local situation adopting a complete cow to consumer st r at eg y : focusing on

quality & profitability for each link in the chain having public-private/NGO sector partnerships to fine tune the

model & spread the risks associated with innovation & start-up using the success to influence policy & having a p lan for

sustainable scaling up

In these processes, committed people (stakeholders) are moreimportant than geography, climate or polictics


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More information?Bangladesh: Muham m ad Mus ta fa Hussa in FAO Terminal Report (published 2007): www.fao.org

Also lists all the key documents, guidelines, manuals etc,including the CLDDP m o d e l

Lessons Learned Study: Bangladesh - smallholder milkproducers, nutrition, incomes, jobs (2007)

Mongolia: Tset sgee Ser - Od FAO Terminal report (published 2007): www.fao.org

Also lists key documents, guidelines, manuals etc, includingthe Mongo l i a da i r y cha in m ode l

Lessons Learned Study: Mongolia - small milk producers, thekey to dairy industry revival

www.mongolia-dairy.mn


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Asian milk for health and wealth!

healthy people

wealthy smallholders

Bangladesh

Mongolia

Dhonabhad Bayaar Laa

Thank you!

Brian Dugdill (February 2008)

Documents

1_Mongolia Bangladesh Dugdill