abridged rapid value chain analyses training
DESCRIPTION
Presented by Iddo Dror and Diana Brandes van Dorresteijn at the CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014TRANSCRIPT
Iddo Dror, Diana Brandes – van Dorresteijn
Abridged Rapid Value Chain Analyses Training
CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014
Training Outline
• Why think in terms of value chains?
• How are value chains relevant for livestock?
• How to represent a value chain?
• Issues in value chain assessment(s)
• Illustrating different results of value chain analysis: Tanzania
2
The CGIAR L&F research program operates in how many value chains?
A. 7B. 8C. 9
7 8 9
0%0%0%
Which value chain do you primarily work in?
A. BangladeshB. Burkina FasoC. EgyptD. EthiopiaE. IndiaF. NicaraguaG. TanzaniaH. UgandaI. Vietnam
0% 0% 0% 0%0%0%0%0%0%
What is your background?
A. EconomistB. Value Chain CoordinatorC. Animal
Health/Breeding/Feeding Specialist
D. Cross practice Specialist
Economist
Value Chain Coord
inator
Animal H
ealth/B
reedin...
Cross
practice
Specia
list
0% 0%0%0%
6
Role of Livestock in Developing Countries• > 40% total agricultural GDP• 70% of world’s livestock (18.5 billion “head”)• One billion people earning <$2 a day depend on livestock: 600 million in South Asia; 300 million in sub-Saharan Africa
• Provides food for >830 million food-insecure people: many poor have little access to nutritious animal-source foods
• Small-scale mixed crop-livestock farmers offer opportunities to prevent disease outbreaks, close yield gaps etc.
Source: Better Lives through Livestock, ILRI Strategy 2013-2022, ILRI, Nairobi and 2000 – 2030 figures, FAO, 2011.
Value chains for Livestock Development Using a value chain framework can help better evaluate smallholder livestock systems to:
• Understand the poverty implications of the value chains
• Design, prioritize policy interventions and to assess the impact of technology decisions on livestock systems
• Formulate (and measure impact) of technological, marketing and organizational innovations
• Evaluate, capture and learn from the overall value chain performance and its actors
• Promote a holistic approach 7
A piecemeal traditional approach to agricultural interventions can be defined as….
A. Breaking a complex task into several smaller pieces so that various teams can work on all parts of the value chain in parallel
B. Working on some parts of the value chain in a single country but not on others
C. A traditional manner of preparing meals into smaller parts
D. Working on all parts of the value chain in a single country by dividing work into pieces Bre
aking a
complex ta
sk...
Work
ing on some parts
o...
A trad
itional manner o
f ...
Work
ing on all parts
of ...
0% 0%0%0%
Inputs & Services Production Processing Marketing
Consumers
Inputs & Services Production Processing MarketingConsumers
...in Country A
Inputs & Services Production Processing MarketingConsumers
Inputs & Services Production Processing MarketingConsumers
...in Country D
...in Country C
...in Country B
9Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Piecemeal traditional approach to agricultural interventions
Feed
Medicines
Services
Breeding and intermediate
rearing animals
+/- Markets+/-Middlemen
Farms - many types
Manure, waste and by products
Other food and consumer productsMilk, Eggs, wool/
fiber
Manure, waste and
by products
Meat
+/- Markets+/- Middlemen
Consumer
Retailer
Wholesaler
+/- Markets
+/- Middlem
en
Abattoirs
+/-Processors
Animals+/- Markets
+/- Middlemen
+/- Markets
+/- Middlem
en
Baker, 2007: “A value chain is the set of actors, transactions, information flows, institutions that enable value to be delivered to the customer.”
Source: Tom Randolph, referred to in CRP L& F proposal, 2012
A visualization
How does the Livestock and Fish Research value chain approach differ from the traditional “piece meal” approach?
A. The program adopts an integrated “solution-driven research with development” approach by working together with key partners and stakeholders
B. The program takes a holistic approach towards implementing value chain interventions
C. Crosscutting areas like Knowledge Management, Communications, Partnership and Capacity Development play prominent roles in the global value chains
D. All of the above
0% 0%0%0%
Livestock & Fish research interventions addresses value chain holistically:
Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity Development Technology GenerationMarket InnovationTargeting, Gender, Learning and Impact
Inputs & ServicesProducti
on
Trader/distribut
or
Processing
Marketing
Consumers
Value chain development team + research partners
GLOBAL RESEARCH PUBLIC GOODS
INTERVENTIONS TO SCALE OUT REGIONALLY
Major intervention with development partners
12
Po
licy
Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Value chain analysis approach: Research for Development
Small Group Exercise
13
Briefly discuss what the gaps are in our “holistic” value chain approach (5-10 min.) and draw out (5-10 min.) the main elements that need to be considered in a (dairy) value chain mapping
Three levels of value chain mapping
Understand the context in which the system operates
Understand how the different business links function together as a system
Identify and assess the relationship, leverage points, capacities and resources of partners including support services and stakeholders
14Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012
Purpose: • Identify value chain actors, services and enablers; main market
channels (relative importance, requirements, geographical spread); visualize linkages; demonstrate interdependencies
Level one: Core Processes
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012 15
Level two: Organizational & partner network
Incl. support services & other stakeholders
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets. 201216
Level three: Institutional landscaping
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 201217
Most important issues to consider in value chain analysis
• Governance, formal and informal power structures, political economy
• Value chain upgrading opportunities to create job opportunities and create incomes, organization and business development
• Favorable environment for (investment in) innovation
• Measuring impact of overall chain performance
• Local versus global-oriented value chains18
Which of these issues do you consider the most important?
A. Governance and PowerB. VC upgrading
opportunitiesC. Enabling environment
investment in innovationD. Measuring ImpactE. Local versus Global VC
Govern
ance an
d Power
VC upgrading o
pportunities
Enabling enviro
nment i...
Measu
ring Im
pact
Loca
l versu
s Global V
C
0% 0%0%0%0%
Value chain analysis – tools, techniques
Value chain analyses are more than pretty pictures or maps.
What else would it include?
• Individual surveys of value chain stakeholders• Using sampling/detailed questionnaires, group
interviews to identify practices, costs and prices• Using statistical tools to extract (data) trends • Partner scoping studies
20
• Reliable value chain mapping: geographical mapping of chain actors and marketing channels
• Solid Market analysis: quantify product and information flows, prices and costs along the chain
• Value creation: quantify and analyze value created through,- and along the chain
• Sound models for value chain analysis: to understand contribution of various factors in value creation and chain participation
• Constraints and opportunities identification• Policy and business recommendations formulated
21
Results from value chain mapping and analysis
Illustrating different results of value chain analysis
Case from Tanzania
23
Case: Tanzania Dairy
“Maziwa Zaidi”
Goals (10-12 years)Three principle goals:
• Smallholder farmers have reliable and consistent access to quality inputs and services in order to efficiently achieve high milk productivity
• Smallholder famers have access to reliable, well-coordinated, and efficient dairy products marketing arrangements with resultant improvement in household income and livelihoods
• Poor consumers have improved access to quality, safe, and nutritious dairy products at affordable prices to increase per capita consumption of the dairy products
24
Impact Pathways (10-12 years)
Long term impacts through four main pathways:
• Institutional innovations for reliable and consistent access to inputs and services
• Innovative strategies for consistent and reliable access to artificial insemination materials and services, forage, and water
• Generation of evidence for achieving impact at scale and influencing policy
• Innovative strategies for increasing the consumption of dairy products
25
Project sites
26
Producers
Households outside village
Restaurants outside village
Milk vendors
Collection centers
Households in village
Restaurants in village
Auction market in & outside village
Agro- vet shops outside village
Mobile agro-vets
Agro-vet shop in urban centres
1
6
2
5
4
3
Government/Research institution (AI, Breeding management, vaccines)
Processors
<--------------------------------------------Mostly commercial / intensive & semi-intensive producers---------------------------------->
<---- Mostly pre-commercial/extensive producers producers------>
Key: 1-6 = channels in order of preference by producers across 8 typical villages in Morogoro and Tanga. These also reflect decreasing price gradient that ranges from TSh 1000/liter for direct sales down to TSh 300/liter for sales to vendors collection centers.
Dairy Value Chains in Tanzania
27
Milk processing in Tanzania has been declining since 1990
28
Milk Processing is declining
Huge seasonal fluctuation in milk supply from traditional herd
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
500100015002000250030003500400045005000550060006500700075008000850090009500
100001050011000115001200012500
Milk collection by a small scale processor from traditional herd in Morogoro, 2009
Average/month Total supply
Month
Vo
lum
e o
f m
ilk (
litre
s/m
on
th)
29
Reported Yields
30
Farmer groups are strugglingin most places except in Tanga
Performance of milk collection at Nnronga women dairy co-operative Society, Hai
Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007)
050000
100000150000200000250000300000350000400000450000500000550000600000650000700000750000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Year
Volu
me
of M
ilk (L
itres
)
Nnronga
CHAWAMU-Muheza
31
Four inter-related problems faced by resource-poor milk producers
1. Smallholders produce small volumes for direct sales: no economies of scale
2. Inadequate credit facilities for basic inputs/services/working capital: lack of investment opportunities to improve productivity
3. Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed)
4. Seasonality of rainfall and related effects on production are strong
32
What do you consider to be the most important constraints faced by resource-poor milk producers ?
A. Production: No economies of scale
B. Inadequate access to finance/credit
C. Lack of organisation(s)D. SeasonalityE. PoliciesF. Other
0% 0% 0%0%0%0%
Distribution Channels
34
Milk marketing outlets (NBS, 2003)
Milk Buyer %
Neighbours 86.1Local market 5.5Secondary market 0.5Processors 1.4Large scale farms 0.2Trader at farm 4.5Other 1.7TOTAL 100.0
Milk processing installation 1995-2000. (Total approx. 315,000 l/day)
Processor name Installed capacity (litres/day)
1 Azam Dairy 3,0002 Tommy Dairy (Hakifanyikazi) 15,0003 Tan Dairies 15,0004 Tanga Fresh Ltd 40,0005 Ammy Brothers Ltd 2,0006 Brookside (T) Ltd (Hakifanyikazi) 45,0007 International Dairy Products 5,0008 Mountain Green Dairy 1,5009 Arusha Dairy Company 5,000
10 Kijimo Dairy Cooperative 1,00011 Longido (Engiteng) 50012 LITI Tengeru 50013 Terrat (Engiteng) 50014 Orkesumet (Engiteng) 50015 Naberera (Engiteng) 1,00016 Nronga Women 3,50017 West Kilimamnjaro 1,00018 Mboreni Women 1,00019 Marukeni 1,00020 Ng'uni Women 1,00021 Kalali Women 1,00022 Same (Engiteng) 50023 Fukeni Mini Dairies 3,00024 Kondiki Small Scale Dairy 1,200
25 Musoma Dairy 40,00026 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,00027 Makilagi SSDU 1,50028 Baraki Sisters 3,00029 Mara Milk 15,00030 Mwanza Mini Dairy 3,00031 Kagera Milk (KADEFA) 3,00032 Kyaka Milk Plant 1,00033 Del Food 1,00034 Bukoba Market Milk Bar 50035 Bukoba Milk Bar - Soko Kuu 50036 Mutungi Milk Bar 80037 Salari Milk Bar 80038 Kashai Milk Bar 80039 Kikulula Milk Processing Plant 1,00040 Kayanga Milk Processing Plant 1,00041 MUVIWANYA 1,00042 SUA 3,00043 Shambani Graduates 400044 New Tabora Dairies 16,00045 ASAS Dairy 12,00046 CEFA Njombe Milk Factory 10,00047 Mbeya Maziwa 1,00048 Vwawa Dairy Cooperative Society 90049 Gondi Foods 600
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Key
26
12
16
6
7
8
12
9
4
5
10
3
11131415
17
18
19
20
2122
23
24
42
45
25272829
3031
32
3233
34 35 3637 38 39
4041
43
4647
48
49
46
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGAMBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
I N D
I A N
O C
E A
N
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
Milk processing installation 1995-2000. (Total approx. 315,000 l/day)
Processor name Installed capacity (litres/day)
1 Azam Dairy 3,0002 Tommy Dairy (Hakifanyikazi) 15,0003 Tan Dairies 15,0004 Tanga Fresh Ltd 40,0005 Ammy Brothers Ltd 2,0006 Brookside (T) Ltd (Hakifanyikazi) 45,0007 International Dairy Products 5,0008 Mountain Green Dairy 1,5009 Arusha Dairy Company 5,000
10 Kijimo Dairy Cooperative 1,00011 Longido (Engiteng) 50012 LITI Tengeru 50013 Terrat (Engiteng) 50014 Orkesumet (Engiteng) 50015 Naberera (Engiteng) 1,00016 Nronga Women 3,50017 West Kilimamnjaro 1,00018 Mboreni Women 1,00019 Marukeni 1,00020 Ng'uni Women 1,00021 Kalali Women 1,00022 Same (Engiteng) 50023 Fukeni Mini Dairies 3,00024 Kondiki Small Scale Dairy 1,200
25 Musoma Dairy 40,00026 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,00027 Makilagi SSDU 1,50028 Baraki Sisters 3,00029 Mara Milk 15,00030 Mwanza Mini Dairy 3,00031 Kagera Milk (KADEFA) 3,00032 Kyaka Milk Plant 1,00033 Del Food 1,00034 Bukoba Market Milk Bar 50035 Bukoba Milk Bar - Soko Kuu 50036 Mutungi Milk Bar 80037 Salari Milk Bar 80038 Kashai Milk Bar 80039 Kikulula Milk Processing Plant 1,00040 Kayanga Milk Processing Plant 1,00041 MUVIWANYA 1,00042 SUA 3,00043 Shambani Graduates 400044 New Tabora Dairies 16,00045 ASAS Dairy 12,00046 CEFA Njombe Milk Factory 10,00047 Mbeya Maziwa 1,00048 Vwawa Dairy Cooperative Society 90049 Gondi Foods 600
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Key
26
12
16
6
7
8
12
9
4
5
10
3
11131415
17
18
19
20
2122
23
24
42
45
25272829
3031
32
3233
34 35 3637 38 39
4041
43
4647
48
49
46
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
KeyLess than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Less than 5000 litres/dayLess than 5000 litres/day
5000-30,000 litres/day5000-30,000 litres/day
More than 40,000 litres/dayMore than 40,000 litres/day
Key
26
12
16
6
7
8
12
9
4
5
10
3
11131415
17
18
19
20
2122
23
24
42
45
25272829
3031
32
3233
34 35 3637 38 39
4041
43
4647
48
49
46
26
12
16
6
7
8
12
9
4
5
10
3
11131415
17
18
19
20
2122
23
24
42
45
25272829
3031
32
3233
34 35 3637 38 39
4041
43
4647
48
49
46
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGAMBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
I N D
I A N
O C
E A
N
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGAMBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
I N D
I A N
O C
E A
N
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
Milk processing installation
35
Gender: Women participation in milk related tasks
36
BREEDS
• Dearth of artificial insemination technicians due to restrictive certification system
• Unreformed sector (improved breeding bill not yet submitted)
• Breeding regulator and practitioner are one and the same
• Inadequate, disjointed service delivery, with different agenciesoverseeing animal registration, performance and genetic evaluation
• Brucellosis is not listed as a notifiable disease so testing and control are neither mandatory nor publicly funded
• No information systems to capture livestock identification, registrationand performance for breed improvement and animal traceability programs
FEEDS, HEALTH – WHAT ABOUT GENDER ?
Policy constraints
Livestock & Fish research interventions addresses value chain holistically:
Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity Development Technology GenerationMarket InnovationTargeting, Gender, Learning and Impact
Inputs & ServicesProducti
on
Trader/distribut
or
Processing
Marketing
Consumers
Value chain development team + research partners
GLOBAL RESEARCH PUBLIC GOODS
INTERVENTIONS TO SCALE OUT REGIONALLY
Major intervention with development partners
38
Po
licy
Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Value chain analysis approach: Research for Development
CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world.
CGIAR Research Program on Livestock and Fish
livestockfish.cgiar.org