Maziwa Zaidi updates Amos Omore MilkiT Coordination Meeting 22 Jan 2014, Morogoro, Tanzania What is ‘Maziwa Zaidi’? • Coined to domesticate CGIAR Livestock and Fish (LaF) Program in Tanzania • It’s a dream for pro-poor transformation of the Tanzania dairy VC over the next decade++ that is not ‘yet’ fully funded • The impact pathway for Tanzania dairy VC defines how to get there • Seeks to enrol/get buy-in by non-LaF dairy R&D partners for greater synergy What is ‘Maziwa Zaidi’? • Individual projects help us to achieve ‘Maziwa Zaidi’ but they are not singly • Other rationle: – Reduce confusion among stakeholders regarding which projects they are collaborating with, – Encourage synergy among collaborating projects, – Rally value chain research and development partners towards a shared purpose. What is ‘Maziwa Zaidi’? ‘Maziwa Zaidi’ projects so far: Name Donor PI Theme Objective MilkIT IFAD B Mass Feeds MoreMilkiT SFFF2 (ACIAR?) Irish Aid BMZ/GIZ A Omore/L.K D Grace VCD A4HN Cow Killer BMZ CGP IDRC S Alonso /D. Grace A Galie / (A. Omore) Animal Health/FS Gender/M&E Feeds innovations/IPs Hubs Food safety (nutrition?) Disease prev survey Food security What is ‘Maziwa Zaidi’? ‘Maziwa Zaidi’ projects proposals/pipeline Maziwa Zaidi planning Place of LaF R4D in ‘Maziwa Zaidi’ More milk, income, assets and better health & Nutrition thro’ a) access to quality inputs and services b) access to reliable, well-coordinated, marketing arrangement c) access to quality, safe and nutritious products at affordable prices Scaling out development partnerships (e.g., EADD2? + +) Scaling out development partnerships (e.g., EADD2) Research & piloting partnerships (e.g., MoreMilkiT, MilkiT; SFFF2; new proposals) Maziwa Zaidi Strategic Research Time 10 years Highlights of progress of Flagship Project (More MilkiT) and other integrated projects More Milk in Tanzania Project Objectives (derived from Irish Aid Country Strategy Paper for Tanzania and ASDS) Goal: • Inclusive growth and reduced poverty and vulnerability among dairy-dependent livelihoods in relevant rural areas in Tanzania Outcome: • Rural poor are more income secure through enhanced access to demand-led dairy market business services and viable organisational options, and low-income consumers have better access to affordable milk. More Milk in Tanzania Project Contributing Objectives over 5 yrs 1. Develop scalable value chains approaches with improved organization and institutions serving resource-poor male and female smallholder dairy households 2. Generate and communicate evidence on business and organizational options for increasing participation of resourcepoor male and female households in dairy value chains 3. Inform policy on appropriate role for pro-poor smallholderbased informal sector value chains in dairy sector development More Milk in Tanzania Project Addressing 4 inter-related problems that face resource-poor milk producers 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity 3. Lack of appropriate organizational models for precommercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects are strong (with MilkIT) Milk marketing outlets Milk Buyer (NBS, 2003) % Neighbours 86.1 Local market 5.5 Secondary market 0.5 Processors 1.4 Large scale farms 0.2 Trader at farm 4.5 Other 1.7 TOTAL 100.0 More Milk in Tanzania Project Addressing 4 inter-related problems that face resource-poor milk producers 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity 3. Lack of appropriate organizational models for precommercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects are strong (with MilkIT) Women participate more in milk related tasks More Milk in Tanzania Project Addressing 4 inter-related problems that face resource-poor milk producers 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity 3. Lack of appropriate organizational models for precommercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects are strong (with MilkIT) Milk processing in Tanzania has been declining since 1990 More Milk in Tanzania Project Addressing 4 inter-related problems that face resource-poor milk producers 32 30 31 RWANDA 32 33 34 BURUNDI 35 36 29 28 27 26 25 15 14 13 11 UGANDA 12 10 KENYA MARA MWANZA a KILIMANJARO MANYARA 7 49 n OCEAN D.R.C Unguja a DAR ES SALAAM y i RUKWA k MOROGORO PWANI 1 a 41 MUVIWANYA 42 SUA 43 Shambani Graduates 44 New Tabora Dairies 45 ASAS Dairy 46 CEFA Njombe Milk Factory 47 Mbeya Maziwa 48 Vwawa Dairy Cooperative Society 49 Gondi Foods n g 37 Salari Milk Bar 38 Kashai Milk Bar 39 Kikulula Milk Processing Plant 40 Kayanga Milk Processing Plant DODOMA a 36 Mutungi Milk Bar SINGIDA T 32 Kyaka Milk Plant 33 Del Food 34 Bukoba Market Milk Bar 35 Bukoba Milk Bar - Soko Kuu Pemba TANGA TABORA I NDIAN e 31 Kagera Milk (KADEFA) MANYARA 46 k 27 Makilagi SSDU 28 Baraki Sisters 29 Mara Milk 30 Mwanza Mini Dairy 8 SHINYANGA 39 19 17 20 16 ARUSHA 40 41 40,000 45,000 1,500 3,000 15,000 3,000 3,000 1,000 1,000 500 500 800 800 800 1,000 1,000 1,000 3,000 4000 16,000 12,000 10,000 1,000 900 600 24 9 KIGOMA 25 Musoma Dairy 26 Utegi Plant (Ex TDL ) (Hakifanyikazi) 6 KAGERA 37 38 L 45 MBEYA IRINGA 47 ZAMBIA 48 2 46 3 42 43 LINDI La ke Key N y as a 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity 3. Lack of appropriate organizational models for precommercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects are strong (with MilkIT) Less than 5000 litres/day 18 23 21 22 5 4 Processor name 1 Azam Dairy 2 Tommy Dairy (Hakifanyikazi) 3 Tan Dairies 4 Tanga Fresh Ltd 5 Ammy Brothers Ltd 6 Brookside (T) Ltd (Hakifanyikazi) 7 International Dairy Products 8 Mountain Green Dairy 9 Arusha Dairy Company 10 Kijimo Dairy Cooperative 11 Longido (Engiteng) 12 LITI Tengeru 13 Terrat (Engiteng) 14 Orkesumet (Engiteng) 15 Naberera (Engiteng) 16 Nronga Women 17 West Kilimamnjaro 18 Mboreni Women 19 Marukeni 20 Ng'uni Women 21 Kalali Women 22 Same (Engiteng) RUVUMA MTWARA 23 Fukeni Mini Dairies 24 Kondiki Small Scale Dairy 5000-30,000 litres/day More than 40,000 litres/day MOZAMBIQUE Milk processing installation 1995-2000. (Total approx. 315,000 l/day) Installed capacity (litres/day) 3,000 15,000 15,000 40,000 2,000 45,000 5,000 1,500 5,000 1,000 500 500 500 500 1,000 3,500 1,000 1,000 1,000 1,000 1,000 500 3,000 1,200 More Milk in Tanzania Project Addressing 4 inter-related problems that face resource-poor milk producers 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity 3. Lack of appropriate organizational models for precommercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects are strong (with MilkIT) More Milk in Tanzania Project Farmer groups are struggling in most places except in Tanga 750000 700000 650000 600000 550000 500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Nnronga Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 CHAWAMU-Muheza 1994 Volume of Milk (Litres) Performance of milk collection at Nnronga w omen dairy co-operative Society, Hai Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007) Key messages on identified entry points • Validity of the need to focus attention on ‘growing’ the existing informal system of milk production (with zebu cattle) and marketing to extend the frontiers of commercial dairying • Organizational models to achieve economies of scale for access to inputs and services required to unleash incentives for raised productivity to levels that will justify bulking • This is riskier than classical approaches but more inclusive in ensuring wider impact on marginalised • Policy support for pro-poor shift needed Identified field sites Hubs for piloting in the Tanzania context Dairy Market Hubs (DMHs) with emphasis on improving access to inputs and services through business development services (BDS) and check-off arrangements: a) DMHs revolving around chilling plants or accessing them (if under-utilized) through transport arrangements that provide both outputs marketing and inputs and services through check-offs; b) DMHs revolving around check-offs for inputs and services provided through milk traders; and c) DMHs revolving around check-offs for inputs and services provided through cattle traders. Illustration of a hub for provision of inputs and services on credit without collective bulking and marketing Producers BASIC Dairy Market Hub for Provision of Inputs and Services on Check-off Traders Milk Cattle $$ Payment agreement Inputs & Service Providers (BDS) BDS linkages in milk quality assurance in informal markets (with TDB) Milk Trader Training Hygienic guides cans Regulatory Authority Accreditation & monitoring Reporting Training Service Providers (BDS) (Trialled in Kenya, Uganda and Tanzania (Arusha & Mwanza) DDF update: It is evolving and continuing to catalyze policy dialogue for a pro-poor transformation of the dairy value chain… MoreMilkiT update: • R&D partnerships formed for piloting have started to mobilize value chain actors for piloting of interventions MoreMilkiT update: Range of partnerships : 1. Strategic Research Partnerships • SUA • TALIRI Reinforced by CGIAR (ILRI/CIAT) and ARIs partnerships 2. Development Partnerships • Servicing the system: Heifer and SNV • From the system: TDB, FAIDA MaLi 3. Mechanisms for strengthening relationships • DDF • Local platforms Criteria for becoming a dairy market hub defined DMH category a): Collective bulking and sale of milk by members of a farmers group Criteria for becoming a DMH Farmers group i) is registered at district level ii) has at least 1 link with a milk trader/ buyer and at least 1 link with an input & services provider iii) members are able to access inputs & services on check off system b) and c): Individual members of Farmers group a farmers group sell milk and/or i) is registered at district level cattle directly to traders ii) members are able to access inputs & services on check off system Hub for provision of inputs and services on credit without collective bulking and marketing Impact pathway and MLE developed • Monitoring, learning and evaluation (MLE) framework) developed • Several targeted research activities and ex-ante assessment of interventions initiated, some through students Baseline (benchmark) results available • Most findings re-affirm VCA findings, with figures • It’s mostly about feed, less so other constraints! 1. Dominant direct sales of small volumes by smallholder producers that preclude economies of scale 2. Credit facilities for basic inputs and services or working capital are lacking. This discourages investment 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 are strong (with MilkIT ++) MoreMilkiT: Main Successes and challenges Successes • Entry points for piloting of interventions identified, the project is now ready for take-off • Early success in preparing for impact in the dairy value chain in Tanzania in the long-term through DDF and ‘Maziwa Zaidi’ value chain transformation agenda Challenges • Lengthy bureaucracies in reaching agreements with partners • Delays in recruiting additional staff • Innovating for inclusive upgrading of dairy value chains is riskier but has more potential for wider impact In support of: CGIAR Research Program on Livestock and Fish livestockfish.cgiar.org 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.