Post on 05-Apr-2017
transcript
African Dairy Enterprises Development
John Logan, Country Director, TechnoServe Kenya
Business Solutions to Poverty
Market System Development
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Business Solutions to Poverty
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Market System Development
Improved production & more effective markets
Weak, inequitable and inefficient systems
Poor are dependent on systems for their livelihoods
that do not work well
TechnoServe strives to make Market Systems work for the
poor
Business Solutions to Poverty
Private Sector Engagement
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Private SectorPrivate sector engagement is at the core of market systems development
Outcomes
Products Services Information
Market Systems for the Poor allows better access to resources for upgraded business activities
Business Solutions to Poverty
TechnoServe’s Role with the Private Sector
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Coach
Communicator
Relationship- Builder
Systems Analyst
Innovator
As a market system facilitator, TechnoServe plays the following roles:Coaching and guiding large and small enterprises that are interested and willing to adopt new retail and marketing strategies and create more pro-poor product and service offers/ bundles.
Helping raise awareness and create knowledge within rural markets around commercial outreach strategies, retail and distribution models.
Creating better relationships between market actors: private sector, consumer groups, producer groups, business support services, local communities, public institutions and government.
Building feedback mechanisms for the poor to ‘be heard’ ensuring there are institutions to counteract powerful elite interests from within the private sector and government.
Supporting product development and innovation by providing technical support and cost-sharing pilots; helping advise and steer strategy; supporting people development with new competences and skills.
Business Solutions to Poverty
TechnoServe’s Expertise with Market System Development
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Business Solutions to Poverty
TechnoServe’s Expertise
• Over the last three years, TechnoServe has been working in the dairy industry in Kenya as a facilitator of market change.
• TechnoServe has been helping increase dairy farmers household incomes by facilitating the development of more effective retail and supply chains for feed, breed and livestock health (veterinary services).
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Business Solutions to Poverty
Kenya Market Assistance Program (MAP)
• In DFID/ UKAid, Kenya Market Assistance Program (MAP) region of support, the majority of poor dairy farmers are not active in the formal market
• TechnoServe has been engaging informal market actors (producers, traders, processors) to formalize their processes and systems to improve business efficiency
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Kenya
Counties of Operation
Business Solutions to Poverty
Milk in the Supply Chain
• Milk is usually the first entry point for farmers in the formal market channels.
• Over time, this has developed to allow farmers to access credit on “check-off” through their hubs or aggregators who are prepared to support this.
• The hub FSA’s have the potential to access finance for members to ramp up milk production and that of other crops (maize & potatoes).
• In the case of milk and dairy hubs, the market does unlock resources for cash strapped, but entrepreneurial farmers.
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Business Solutions to Poverty
Professional Management Firms
(KMPG & PFK)
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Marketing Firms (market research & branding)
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Training Firms
Linked to provide a package of support to
help turnaround and grow underperforming dairy
hubs
Independent commercial training firms
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Universities
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Government agriculture training institutes
Rolling out training in retail management and marketing strategies for dairy hubs and agrovets
Agrovets
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Dairy Hubs
Set up agent networks to help rural farmers get
better access to products, services and information
Agent networks
Also provide an informal feedback channel to
escalate complaints and problems in the market
and put pressure on agrovets and dairy hubs to create more farmer-
centric strategies
Package of Support Training Agent
Networks
Informal Feedback/ Strategies
Professional Management & Marketing Firms
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Business Solutions to Poverty
Retail Training and ICT
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Retail & IT Market Actors
More efficient supplier and customer management
Better quality hay, feed and mineral concentrates and
supplements
Marketing strategies that are responsive to the market needs and wants have been developed
Artificial insemination and
veterinary services
Payment plans from equipment providers
Better product bundles
Business Solutions to Poverty
Thank you
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