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East Africa Dairy Development (EADD):

A Heifer International Project

EADD 2- The Road Map

EADD Annual Review and Planning Meeting

2 Dec 2011, Kigali

Alice Makochieng, Regional Project Mobilization Manager

Project Generously Supported by the Bill & Melinda Gates Foundation

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Rwanda

Presentation Content:

•Overview of EADD 2- The Framework

•Key Activities of EADD 2 – What has been done so far-

The Country Working Groups & Regional Task Force

• Way Forward- Next Steps- to June 2013

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Rwanda

EADD 2- The 5 Countries

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Rwanda

EADD 2- The Framework

EADD 2 builds on the evidence-based successes of EADD 1 but with a

different approach

EADD 2 will be based on more partnership engagement on a PPP Model

PPP looks at a shared responsibility of co-funding by the Public, Private and

development partners (PPP). Building key relationships with Partners based

on a thorough stakeholder mapping.

EADD 2 being embedded in the overall strategic goals of each country,

national objectives and policy in the dairy sector- this strategic fit will be key

in influencing all partners in the value chain

Taking Key Learning as we transition to EADD 2 is imperative as project

focuses on building sustainable businesses at Hub level that are efficient,

impactful on farmers income especially as we establish in new Countries in

EADD 2

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Rwanda

EADD 2- The Vision

EADD2 vision of success is that

the lives of 300 000- 589,00 families – approximately 3.2 million

people - are transformed by doubling household dairy

income by year 10 through integrated interventions in

dairy production, market access and knowledge

application, while at the same time forging stronger

relationships with key partners in achieving this vision.

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EADD2 4 Strategic Pillars(4 Objectives)

Knowledge-based learning

Market access enhancement

Dairy productivity enhancement

Policy &

Partnerships

Policy &

Partnerships

Brian Dugdill (EADD, 2010)

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Rwanda

EADD 2 Targets (Still a draft!)

Country/EADD 2

No. of Current Hubs

Proposed New Hubs

No. of current farmers Faml.

Proposed New Farmers Faml.

Scaling Up

Kenya 19 10 110 000 185 000

Uganda 31 20 45 000 65 000

Rwanda 11 7 24 000 50 000

Scaling Out

Tanzania - 30 - 100 000

Ethiopia - 40 - 80 000

Totals 61 107 179 000 480 000

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Rwanda

EADD 2: Why a PPP model?

BMGF

Govt.

Other Donors

Banks

Processors & Traders

BMGF

Farmers

100% one donor

project

Project with multi-partners

Funding of

EADD 1

Project

Engaging more partners in EADD 2

Leveraging on

partnerships

Building more

sustainability

EADD’s Role

BMGF

BanksProcessors/

CP & TM’s

Government

As a facilitating agent coordinating the activities of all the players, with seed funding from the Foundation.

Interventions will be country-specific and involvement of PPP will differ in each country as well. Project will have its own unique customizationper country, based on national strategic plan/policy.

EADD’s role will be mobilize resources, partners and project management, of around 300mn US$ and above

Supporting the Cooling Plants with managerial capacity and services

Provide Value chain Finance

Provide seed

funding

InfrastructureDevt.

Increase capacity

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EADD

• Farmers- for expansion of business activities at CP e.g. In feed, transportation, new coolers

• Processors- to increase capacity for expanded milk collection

• Market access- to develop new markets for the DFBA’s (PMHP) as well as the cold chain and reach of milk products

• Infrastructure development by the local authorities

• Learning institutions for training to meet demand for dairy managers and personnel

Opportunities to Invest in:

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Rwanda

EADD 2: key interventions Areas

Dairy system(Policy &

partnerships)

Prod., bulking & BDS

Processing Marketing Consumption

-Breeds

-Feed-Health

Capacity planning

market devt. & new

channels

channels

Promotional awareness

and safety

Future areas of EADD intervention

Concentration of

EADD in pilot

EADD 2 giving more industry support

Galaxy of Value: Reaching more farmers

CP

Satellite

Satellite

Satellite

Satellite

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Processor

CP /TM

CP /TM

CP/TM

CP/TM

Satellite

DMG

DMG

DMG

DMG

Will be modified to suit

each country

1. Hub/TM 2. Satellite Units

3. DMG/DIG

Milk

Money

Output to the market

Input to farmers

EADD 2: Key Preparation Activities

What has been done so far- and next steps:

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EADD 2: Development Road map

Mar- June ’12: EADD 2 Proposal Writing

Country Concept Notes Written per Country : Nov’11 - Feb 2012

Consultants Appointed/Sector analysis commences 2nd Stakeholders Meetings held

Appointment & Launch of CWG & Consultants: Oct- Nov 2011

Stakeholder Consultations First Brainstorming Session held

Regional & Country Action Plans and Budgets- Sept 11

Budgets discussed & Finalized Country Action Plans Drafted

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June 2012: Draft EADD 2 Proposal Completed

Step 1

Step 2

Step 3

Step 4

Step 5

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Rwanda

EADD 2 Dev’t Road Map Cont’d…

Concept Note & Proposal Writing

Submission of EADD 2 Proposal to

Foundation and Decision EADD 2 Transition

Jan-June 2012 June-Dec 2012 Jan-June 2013

Key Activities:•Engage Consultants: for

Situation Analysis & CN Writing

& Stakeholder engagement

•Draft 5 Country Concept

Notes & the Regional one

• Country Content driven by

Lead writer/ input from CWG

•Hold Stakeholder Validation

Meetings

•Finalize proposal

Output:

Concept Notes & Proposal

•Finalize Proposal

•Hold Regional Investor

conference

•Submit proposal to SC

•Submit proposal to

Foundation

•Decision by Foundation

Decision by

Foundation

Set up structures in each

country

Launch of EADD 2

Stakeholder and

Partnership commitments

actualized

Set up will depend on

whether Country is

Scaling up/and or Out

EADD 2 Launched

Timelines of Progress Per CountryCountry Country

Action PlanCWG Launch & 1st

Stakeholdermting-Done

Sector profiling & milk shed mapping

CNPT Note drafted

Stakeholder validation

Commence Proposal drafting

Ethiopia Done 30.9.11 -16.9.11 31.10.11Ongoing

Yes Jan 2012

And CN revised

Feb 2012

Kenya To be done on 5th Dec 2011

16th Nov –CWG met

ToR Drafted Jan 2012 Jan 2012 Feb 2012

Rwanda To be done on 5th Dec 2011

Held 29th. Sept, 2011

5th – 8th Dec 2011

Dec ‘11 Jan 2012 Feb- Mar 2012

Tanzania Sept 15th

201115.10.11 31.10.11 Feb ‘12 Jan 2012 Mar ‘12

Uganda Done in Oct2011

6th Oct 2011 Not yet Dec ‘11 Jan 2012 Mar 2012

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The Regional Task Force

Member Organization

Isabelle Baltenweck ILRI

Saeed Bancie Heifer HQ

Luke Potter TNS

Josephine Kirui ICRAF

Nathaniel Makoni ABS-TCM

Moses Nyabila EADD- Chair

Dennis Karamuzi EADD

William Matovu EADD

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The Regional Task Force

Member Organization

Augustine Cheruiyot EADD Kenya

Aichi Kitalyi EADD Tanzania

Zelalem Yilma EADD Ethiopia

Brian Dugdill Dairy Consultant/EADD

Douglas Mwendwa EADD Kenya

Gaitano Simiyu EADD Kenya

Gerald Mutinda EADD Kenya

Alice Makochieng EADD Kenya- Convener

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Rwanda

EADD 2 CWG- Uganda

Country Core Group Reference Group

Uganda William Matovu- CoordinatorErastus Kibugu- ChairAlice Makochieng- Alt. CoordinatorGerald MutindaIsabelle Baltenweck- RappoteurDr Margaret Makuru - HeiferHenry Ibanda – Heifer Robert Walimbwa - SameerMusa Kubula - DDAMr Khalid Matovu - UNDATAMs Prossy Tumushabe - MFC

DDA/UDPASameer (SALL)NAGRICStanbiic BankNorbrook/CoopersUganda Cooperative Alliance (UCA)Micro Finance Support Centre (MSC)FAODr Sylvia Nalubwama - General Secretary UVA.UNDATA, UCCU, DFCU Centenary Bank

-Uganda CWG have produced the draft Country Action Plan, and expanded the reference group for strategic partnership engagement.

The country has an operational National Dairy Sector Development and Investment Strategy policy that our proposal envisages to embed on.

There’s keen appetite by development partners and private sector to get involvedDeveloping a robust route to market mechanism is key

Key indicators

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Rwanda

EADD 2 CWG- Ethiopia

Country Core Group Reference Group

Ethiopia Dr Zelalem Yilma- ConvenerDr. Allan DuncanAlice MakochiengMoses NyabilaBarry Shapiro

Land O Lakes/USAIDSNV, EMDTI, ATA,IPMS, Ethiopian Inst. Of AgricAda’a Dairy Coop,Lame Dairy PLC, Selale Dairy Coop Union, Velocity Dairies, ALPPIS,Haramaya University

• Building engagement and goodwill with key partners and stakeholders in dairy sector•Small private sector involvement but dairy industry starting to attract new investors players in processing.• Working with Govt will be key, as they have large livestock development strategy, but weak on dairy. •Strong regional cooperatives and Milk Shed analysis and mapping is key and on-going •Draft Concept Note drafted

Key indicators

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Rwanda

EADD 2 CWG- Kenya

Country Core Group Reference Group

Kenya Augustine Cheruiyot- ConvenerAlice Makochieng- Alternate Alex KiruiCountry Team Leaders- Dominic Menjo, William Oloo and A. MuneneFred OganaJosephine KiruiNathaniel MakoniBen LukuyuMoses Nyabila

New KCCBrookesideIFC/World BankTetra PakNestle EARCoop Bank, Family Bank/StanbicKenya Dairy BardKDPA, ESADASNV/Land O Lakes,

Kenya CWG has met for 2nd time to review ToR for proposal devt and confirm the Team. Next meeting in 5th Dec to draw Country Work-plan, share tasks and Road MapA more commercial PPP model is envisaged with financial institutions and processors in value-chain financeOpportunities to work with strategic partners in influencing a national dairy investment policy

Key Indicators

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Rwanda

EADD 2 CWG- Rwanda

Country Core Group Reference Group

Rwanda Dr Dennis Karamuzi- ConvenerCharles Kayumba- ChairAlice MakochiengNdavi MuiaLuke PotterIsabelle Baltenweck Jacqueline Kayitesi- Secretary Moses Nyabila.

Land O LakesInyange/Crystal Ventures Limited Bank Populaire du Rwanda Rwanda Development Bank SNV /USAID Rwanda Development Bank Rwanda National Dairy Board MINICOM/MINAGRI Private Sector Federation (PSF) Dairy Quality Assurance LaboratoryRwanda Milk Quality InitiativeRwanda Bureau of Standards (RBS).

•Close working relationship and support from government and the Min of Agriculture and dairy sector. •Opportunity to partner with other development partners as implementing entity of the new dairy initiatives been undertaken by govt and development partners e.g. LISP•Open up market access opportunities•Market research and value-chain survey on-going, would be helpful in defining key issues, going forward•Strengthening of strategic partnerships•Focus on value proposition to farmers and extension

Key indicators

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Rwanda

EADD 2 CWG- Tanzania

Country Core Group Reference Group

Tanzania Dr Aichi J Kitalyi – SecretaryMr. Alfred Futeh, HPI TZMr. A. Mtumwa - HPT TZ Mr. Edmund Mariki - TAMPAMs. Agnes Assenga - HPI TZDr. A. Omore -ILRI – NBIDr. K. Mchau -DECA FeedsMr. N. Mbwambo – Ministry of Livestock and Fisheries DevelopmentMr. D. Mlay – Tan. Dairy BoardMoses Nyabila, RD EADD

Technoserve TZTanzania Dairy BoardTAMPA/TAMRODAACTTetra Pak –MVIWATA – Farmer groups networkASAS Tanzania GroupCoop. Rural Devt Bank/ National Microfinance BankLand O Lakes

Key indicators

•Milk shed mapping underway•Challenge of large land mass and distances,•Improving herd quality and feed is key as well as bulking milk for processing. •Identifying high potential milk sheds•Working in Zanzibar with IFAD would be an opportunity•The Southern Highlands has attracted govt and donor partners as key priority area for dairy development

Unique Feature - Tanzania

Targeted milk shed i.e. the

Southern Highlands

Tanzania fall in an area

recently earmarked for

heavy investment by

government and

development partners aiming

at $2bn total investment by

private sector to triple food

production and lift 2 million

out of poverty

http://www.africacorridors.co

m/sagcot/news.php

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Rwanda

EADD 2 CWG- Ethiopia

Country Core Group Reference Group

Ethiopia Dr Zelalem Yilma- ConvenerDr. Allan DuncanAlice MakochiengMoses NyabilaBarry Shapiro

Land O LakesSNV, EMDTIIPMS, Ethiopian Inst. Of AgricAda’a Dairy Coop,Lame dairy PLCAlemaya University

•Extensive engagement with partners and stakeholders in dairy sector•Small private sector involvement but starting to attract new players in processing.• Working with Govt will be key, as they have large livestock development strategy, but weak on dairy. •Strong regional cooperatives and Milk Shed mapping is key and on-going •Draft Concept Note drafted

Key indicators

Fact-finding in Ethiopia

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EADD 2 Meeting in Ethiopia

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Rwanda

Dairy in Rwanda in 10years?

A group photo with the stakeholders’

Meeting key Stakeholders in Ethiopia

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The next steps…CE & NCE period and beyondNabitanga CP,

Uganda

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The next steps…CE & NCE period and beyond

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The next steps…CE & NCE period and beyond

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The next steps…CE & NCE period and beyond

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Key Activities- Jan-June 2013 Resp. Timelines

EADD 2 Concept Note Writing commencesCWG/RPMM Dec 11- Feb ‘12

Hold Stakeholder Validation Meetings CWG/RPMM Feb-Mar’ 12

Commence Writing Country Proposals CWG April ‘12

Compile Regional Proposal doc CWG June 2012

Organize Regional Investor Conference/buy-in RPMM/CWG June 2012

THE NEXT STEPS: NCE TO CE

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Key Activities Resp. Timelines

June-Dec 2013

Finalize Proposal and Submit to Steering CommitteeRD July 2012

Feedback from the SC & Corrections RD Aug 2012

Travel to Seattle for Proposal Submission to the Foundation

RD/CWG/Investors Sept’12

Outcome of Decision Communicated by Foundation RD Dec ‘12

Jan- June 2013

Managing transition to EADD 2, Setting up structures RD/CPM/RPMM Jan-June 2013

Launch and Inception of EADD 2 in each country RD/CPM/CWG April-June 2013

THE NEXT STEPS: NCE TO CE

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http://www.gatesfoundation.org/Pages/home.aspx

www.heifer.org www.eadairy.org

Key Discussion Points -

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1. Project Design and Defining strategic objectives customized for each

Country and the Country CN and Proposal writing process

2. Influencing Policy and Building Partnerships- The enabling Environment

3. Key Learning of EADD 1 to take to EADD 2: What should be done

differently?

4. Site selection and identifying viable sites- Lessons Learnt. Scaling up and

Out, what should be the determinants

5. Building sustainability into EADD 2, the Hubs as an effective means to

improving farmers’ lives?

6. Mobilizing Resources Co-funding strategies