EADD Annual Planning & Review

Meeting- 2012

EADD-2 Country Proposal Development: Uganda

26th to 30th November 2012

Mt. Kenya Safari Club, Nanyuki, Kenya

Update on the EADD 2 Vision

Proposed Approaches Response to the key questions raised after Seattle

Key partners and co-fundraising update –

Next steps and Discussion Questions

Outline

Visioning

•A dynamic, profitable and well regulated dairy sub-sector ( Source National Dairy Strategy – 2011-2015)

• Smoothen seasonality, improve access to affordable quality dairy products.

•Equity in sharing of margins by value chain prayers

•Efficient & effective BDS inputs services system that meet needs of SHFs.

•Create agency to drive industry coordination and leadership.

Country Dairy Sector Vision

• Improved sustainable livelihoods of 95,000 smallholder farmer families t through a competitive and inclusive dairy industry . EADD Goal

Justification for EADD2

• Consolidate EADD1 gains – Transit hubs to sustainability

• Scale up based on EADD1 learnings

Role of EADD2 in Uganda

• Supplier organization especially by setting up strong farmer institutions .

• Stimulate competiveness within the dairy sub sector.

• Further refine and contextualize the hub model so as to make it a tested model for the development of the dairy sector in Uganda.

Hub model for Scale up

Country System Description Proposed Hub Model

Uganda System 1: Raw liquid milk system (Rural and

Peri-Urban Producers selling to either

Traders or Farmer Organizations and

onwards to Institutional

Buyers/Hawkers).

Model 1 (Trader linkages) for

peri-urban locations

Model 2 (Pre-Bulking) in rural

locations where volume does

not justify bulking

Model 4 (bulk but not chill) in

rural locations where volume

justifies bulking.

System 2: Formal processed liquid milk system

(Rural producers selling to Farmers

Organizations and onwards to either

Processors or Micro-Processing at the

Farmer Organization).

Model 3 (Bulk and chill)

Approach

Ensure that EADD1 are viable

Scale up the profitable dairy commercial business Hubs in the existing Central milk shed, near East and South Western shed

Set up productive partnerships with the public and private sectors, as well as other development partners, to leverage investments and generate synergy

Increase capacity to understand consumer demand and develop marketing interventions/appropriate policies

Hub development strategy: Processor cluster/ hub led development

Strategy.

Potential EADD2 Sites: Scaling up

– milk

sheds

Farming Families*

People

HHs owning

Cattle (2008

Livestock

Census)

Cattle

Total

numbers

(2008

Livestock

Census)

Old

sites/EAD

D1 Sites

Proposed

number of

sites.

Regional

Poverty

incidenc

e (%)

UNHS

2009/10

Partners

EADD1 EADD2 Total

**Central 36,732 23,400 60,132 357,500

339,170

2,475,860

36

(10 CPs,

26TMs)

4 CP sites

10.7

Sameer, JESSA, NAADs, District

local governments, Grameen

Foundation, Micro Finance

Support Centre (MSC), Stanbic

bank,

South

Western 29,000 29,000 192,500

298,040

2,548,620

3 CP sites

21.8

Pearl Dairies, Uganda Crain

Creameries Cooperative Union

(UCCU) ,NAADs, District local

governments, Grameen

Foundation, Micro Finance

Support Centre (MSC), Centenary

bank, aBi-Trust.

Near Eastern 2,968 3,000 5,968

2,487,514

2 CP sites

Sameer, Tiptop dairies, NAADs,

District local governments,

Grameen Foundation, Micro

Finance Support Centre (MSC),

Centenary bank

Total 39,700 55,400 95,000 7,511,994 36 9 45 sites

Proposition for EADD1 sites into EADD2

• Exit from Peri-urban sites

• Build milk volumes & turn around strategy

-Increase suppliers

-Increase productivity per farmer/supplier

• Stimulate BDS to work for SHFs

• Facilitate creation of apex entities - convening power

Extension - Strategy Extension approach for EADD 2 in Uganda – use of embedded DFBA extension approach

Overall goals

To increase productivity at farm level

Increase volumes and improve on the quality of milk supplied to CPs.

Hub level objectives

To assist co-ops in farmer mobilisation, model farmer development, creation of BDS linkages and to ensure that farmers can access a range of hub services (breeding, animal health, feeds and milk quality

Increase volumes of milk and improve on the quality of milk supplied to CPs through productivity enhanced technologies.

How will extension be driven at hub level?

EADD Uganda intends to use three models to drive extension at hubs; this will depend on the site context.

a) Entrepreneur model b) Value chain driven model c) In-house hub driven extension d) Mixed model

Hub Extension Coordinator/agent is at the fore front of facilitating supply and demand for

extension services

Extension agent trains all the 24 model farmers in his jurisdiction once a week

Each empowered model farmer

Trains 15 SHF once a week

d)

Proposed approach when extension is fully functional at hub (after empowering model farmer to be an extension provider)

Model farmer

Model farmer

Smallholder farmer

Extension Agent

Smallholder farmer

Smallholder farmer

Smallholder farmer

Strategies to increase milk productivity at farm level.

i) EADD will support DFBAs develop strategic linkages with district local governments

to tap into available opportunities

ii) Trainings through model farmer development, field days, exchange visits and formal

trainings in improved production practices

iii) Strengthen linkages between BDS actors and DFBAs

iv) Introduce loyalty schemes at hub that enhance milk productivity e.g. provision for

feeds, drugs, AI

v) Promoting appropriate site specific breeding (appropriate breeds) and appropriate

feeding strategies (contextualized based on feed plan).

Key Partner and funding Update

Name of partner

Main Contact Name & Position

Sector Approx Amount USD

Area of investment

Type of Funding

Comments

Sameer Anup Sharma Managing Director

Processor 816,000 Feed, extension, bulking center set up

Core and Complementary

Pearl Dairy Farm LTD

Mr Ravi General Manager

Processor 15 M USD Extension , coolers and setup of factory

Complementary

aBi Trust Clive Dew Director

Development partner

8.4 M USD (6.5 M Euros)

Cold chain development and farmer institutional strengthening

Core MoU being discussed

SNV Regt, Jeanette de Country Director

Development ??? Market access/Policy

Core Concept being developed

Total Envisaged

24 M USD

Next Steps

• Finalize comments from the external reviewers by 7th Dec

• Re-align budgets and result framework by 7th Dec

• Seal co-funding deals

• Identify partner for implementing nutrition component.

Thanks You