african dairy enterprises development

African Dairy Enterprises Development

John Logan, Country Director, TechnoServe Kenya

Business Solutions to Poverty

Market System Development

TechnoServe | 2


TechnoServe | 3

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


Private Sector Engagement

TechnoServe | 4

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


TechnoServe’s Role with the Private Sector

TechnoServe | 5

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.


TechnoServe’s Expertise with Market System Development

TechnoServe | 6


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).

TechnoServe | 7

Beth Raymond

Do you have a dairy photo from Kenya?


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

TechnoServe | 8

Kenya

Counties of Operation


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.

TechnoServe | 9


Professional Management Firms

(KMPG & PFK)

+

Marketing Firms (market research & branding)

+

Training Firms

Linked to provide a package of support to

help turnaround and grow underperforming dairy

hubs

Independent commercial training firms

+

Universities

+

Government agriculture training institutes

Rolling out training in retail management and marketing strategies for dairy hubs and agrovets

Agrovets

+

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

TechnoServe | 10


Retail Training and ICT

TechnoServe | 11

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


Thank you

TechnoServe | 12