MOREMILKIT WORK PLANNING MEETING AT FAIDA MALI ON 7th OCTOBER 2015 The meeting was held to continue with the planning for the next period for Faida Mali following the review and planning meeting held in Bagamoyo 23-25 September 2015. PRESENT 1. Tom Sillayo-Faida 5. Julius Githinji 2. Nissefori Mkwama 6. Amos Omore 3. Adolf Mushi 7. Agnes Assenga 4. Edgar Twine Agenda: i. Define what would MoreMilkiT success look like in the next 12months from partner’s point of view ii. Define priority areas and focus on “ iii. Define specific activities to be undertaken including documentation iv. Identify complementary role of the other partners What would success look like in the next 12months for Faida Mali? The following attributes were listed in response to the above question Attributes of a successful Intensive system Functional contracts noticeable through the amount of business (value and frequency of transaction) Milk bulking by the producers with or without chilling Producers are able to access quality inputs and services including AI Dairy business is profitable to the producers and the service providers DMH are providing services and inputs to the members on a check off system and other credit Extensive system attributes Producers are conducting dairy cattle keeping as a business. Increased use of input and output services by the producers Development of businesses like that of Leah Mwilaki prototype with eventual linkage to larger business e.g. ASAS Increased gender –women participation in Business to Business linkages Discussions Out of the above attributes, developing businesses like that of Leah Mwilaki was agreed to be the main focal point for activities going forward. There is need to adapt Leah Mwilaki prototype to the different contexts, we could have a Leah with links to a group and another without links to a group but individual producers in a catchment area whose interests in operating as a group could be explored and supported. This is because producers only appreciate the group if they get a tangible benefit or ‘glue’ that must be identified upfront. Part of the process of replicating Leah prototype would entail trying to understand producers she is getting milk from (group members and non- group members). Upon profiling the producers in the Leah Prototype, the next steps would include enrolling other similar business with which FM has already established contracts or hunting others Leah in the villages. It should be easy to empower producers through capacity building in the extensive system to conduct dairy as a business using the Leah model as she is already doing the business profitably in the same context The meeting agreed that the producer groups in the extensive system will be nurtured around the Leah business model where there is interest among producers to operate as a group. Priority areas of focus Discussion Question: Do we drop some villages or do we retain all the villages? Answer: Rather than drop certain villages, we will trim down on the activities at each site to only those that are likely to produce significant impact but not reduce the number of villages. The project will adopt a strategy of deepening its activities as opposed to widening. It will mean getting what makes each of the villages tick. For the extensive system it’s about being dynamic and having a hub that works for each village as opposed to a “one size fits all” approach. We will aim to re model the groups around the Leah business model. A business opportunity seminar will be held to kick-start the re-focused approach centered on working with Leah prototypes in the villages. There could be one or more such businesses per villages that Faida Mali and partners will work with Leah. As the project re focuses its activities centered on Leah prototypes, it’s also important not to lose sight of the producer groups that have been formed as they are a platform for other projects to engage with the producers. As part of the process of identifying the Leah prototypes, the project will also engage the management of the milk collection centers/chilling plants who buy the milk. Documentation of processes will be emphasized as a priority. Part of the process of documentation will be through application of stage gating of the MoreMilkiT villages to objectively assess the level of relative advancement towards sustainability. ILRI will Leah the process of determining the data needs for the stage gate as a well refining and adapting the tool to MoreMilkiT sites. The project will also document qualitative aspects of each group that enhance/hinder development e.g. there is need to document the history of each group as some groups have lagged behind due to internal group politics. Recording and verbatim reports will be some of the methods used to capture the qualitative perspectives from the groups. Leah Box 1. Improving access to inputs and services through check-off arrangements: Leah Mwilaki’s story Mrs. Leah Mwilaki is both a livestock keeper and milk trader based in Wami Sokoine Village in Mvomero District. Leah is the kind of milk trader whose business could grow through the linkages being promoted by the project in Tanga and Morogoro Currently, Leah buys milk from neighbours at between TSh 500 and 600 per litre to supplement her own production and then sells about 100 litres of bulked milk to outlets in Morogoro town at TSh 1000 per litre. Her clients include hotels, restaurants and milk vendors. Leah also often purchases various inputs such as animal feeds and drugs from Morogoro town to sell to her neighbours. Leah’s role in facilitating interlocking of input and output transactions where farmers access the desired inputs or services on credit with their milk delivery as collateral (check-off) is now reflected in three villages in Lushoto and one in Mvomero in another 10 villages where the same linkages exist but without check-off arrangements. These 14 villages have a total of about 1000 members. These business linkages are beginning to address some of the constraints to improving productivity that were identified during site-specific planning with farmer groups across the 30 villages with over 2300 members. Emerging benefits from these interventions are presented in following sections. SPECIFIC ACTIVITIES TO BE UNDERTAKEN IN EXTENSIVE AND INTENSIVE VILLAGES A: IN EXTENSIVE SYSTEM a) Milk quality and hygiene FM to follow up discussions with TDB to explore piloting of the Mazzican, this should be a business to business (B2B) linkage linking Ashut with the input providers. FM will invite Ashut during the Business opportunity seminar. TDB to guide on Mazzican accreditation process. In the villages that ASAS is engaged with, the project will provide support on specific milk qualities issues identified by ASAS. b) Business opportunity seminar (BOS) The seminar is meant to identify business opportunities to grow Leah prototype businesses and to kick-start the process of coaching and mentoring Leah. The seminar will offer an opportunity to profile the producers that each potential Leah prototype is dealing with in an effort to understand the business of each trader. Once we identify the Leah prototype in each of the village, FM will offer coaching and mentoring on a period of 4-6 months, the Leah prototype will also be exposed to business planning. As part of the preparation to the BOS, FM will develop and share a timetable and program. A checklist for profiling the traders will also be developed jointly by FM and ILRI. It is important for FM to document all the linkages initiated and created by FM as they form a bench mark through which FM interventions will assessed. FM will act as one stop shop for documenting all the linkages created. c) Feeds and feeding:- ILRI to follow up on the activity of feeds demonstrations and Ololili/gender study separately d) Animal heath: This will be focused on collaboration with the ECF ITM vaccine scaling project scheduled to begin soon. As we develop the Leah model we need the local government to take more responsibility in working with the producer groups in extensive areas. The Leah model promises to bring on board “new” or more producers as some of the producers working with the Leah prototypes are currently not project farmers. This may help the project in reaching a higher number of producers. The selling point of the new emphasis on working with Leah prototype to the producers will be that the project is shifting gear to engage with actors more upstream in the dairy value chain for upgrading of the entire VC. Having previously concentrated its effort in production and working with the farmer groups, the project is refocusing its energy on tackling the market constraints to create a “pull” and “push” effect for the producer groups. e) Explore sources for quality dairy breeds and AI services to link to cattle keepers in extensive system. As a background, some groups mobilized members to save cash for the purchase of improved dairy breeds. There was a communication breakdown as the producers expected the project to foot the transportation costs of purchasing the animals and also to offer expert advice on the qualities of the cows that were being purchased. The consensus was that first the project needs to apologize to the groups for the miscommunication. Secondly work with the groups to identify source of the advice e.g. TALIRI and the local government also has the experts who can offer the service. The groups to explore social economic development funds within the local government f) Backstopping and mentoring on regular basis: Aim is for the project to create good rapport with the group’s e.g. through periodic phone calls. The calls to be structured to assist in capturing some information on the groups/Leah this will inform the process while documenting the project intervention. Heifer and FM will follow up on the calls to the groups; there is need to agree on the frequency and structure of the calls. District livestock extension officers to keep in touch with the groups through monthly visits as way of providing monitoring and coaching g) Explore possibility of ASAS to install CP in Mikumi—ASAS has identified a location for the CP and is in the process of finalizing installation of tanker. ASAS has expressed interest in meeting with the group Leadership to discuss the price, mode of milk delivery. It is the first time that ASAS is working with pastoral groups and has requested the project to assist in the discussions with farmers and for FM to participate in the discussions. i) Facilitate groups and input supplier to agree on specific discount rate that is documented on the contract. The discounts work best in the intensive system as the traders value the volume of the business There is need to have a “win win” for the actors in the contractual arrangement. Capture/document the loyalty mechanism that the businesses such a Leah have with the producers this could be done during the BOS j) Finalize contracting with milk buyers-facilitate input suppliers to agree on the specific discount rates Get the Leah prototypes to value the producers business as also being part and parcel of their own; the traders should view the producer’s business profitability as crucial for success of their businesses. Summary i. Identify the ‘Leah’ prototype per village ii. Plan engagement with Leah prototypes starting with a business opportunity seminars to kick-start mentoring and coaching on specific B2B linkages in each business plan iii. Learning and exchange visits to appreciate the Leah model iv. Backs stopping and mentoring on quarterly basis v. Documentation of the linkages by FM-identify producers within the groups willing to experiment and play a more proactive role. What can we capture from the exchange visit? Experiment on provision of inputs on credit using the group collateral. Capture the appreciation of even the need to take part in the visits/activities B: IN INTENSIVE SYSTEM a) Facilitating the group to access the collection centers and other services in the groups’ vicinity-this will be addressed by actualizing the contracts. There is need to experiment with the contracts that have been signed by the groups in the intensive system, the project to play a proactive role in actualizing of the contracts. The experiments will be done on a small scale and will form the basis for replication in other areas. The design of the experiments will incorporate provision of inputs and services on credit using the group collateral. Participants in the experiments will document the value and frequency of the transactions. b) Exchange visits; this will be tailored visits either within or outside the group. This could include establishment of feed champions and low cost cattle sheds for the producers to visit milk week where Heifer has the cows on display. c) Financial linkage to MFIs (service provider and producers) will be done on case basis. There are institutions that are willing to provide the credit. FM will facilitate both the producers and input service providers to be able to engage with the financial institutions. The linkage with MFI is a targeted intervention and will best be done during BOS. Considering the farmer groups are too risky for the finance institution the most ideal lending would be to aggregators of value like the milk traders. Get the producers to develop a bankable business plan that the banks can be able to lend cash to the individual producers. Considering the time frame, it would be ideal we select liquid traders that might not need cash in the short term. Try to experiment with a few traders to show that the concept of linking business to finance institutions can work. Faida Mali to work on a budget for the following period based on the items agreed on in this work plan and reflected in the attached spreadsheet WORK PLAN Planning Meeting_FM.XLSX