Dairy hubs in East Africa:

Lessons from the East Africa Dairy Development project

Presented by Isabelle Baltenweck and

Gerald Mutinda at a „livestock live‟ talk

ILRI Nairobi, 26 June 2013

East Africa Dairy Development Project Factsheet

Scope

Duration: Jan 2008-Jun 2013 Budget: USD50 M (BMGF) Investment fund: USD5.0m

BMGF: USD2.5m Heifer: USD2.5m

Partners BMGF HI - lead TNS - business ILRI – knowledge-based learning ABS – genetics & breeding ICRAF – feeds & feeding

Structure (120+ staff) Country offices

Kenya Rwanda Uganda

Regional office

EADD Vision and Objectives

Vision

Transform the lives of 179,000

smallholder farming families

(approximately 1 million people) by

doubling their household dairy

income in 10 years.

Objectives

• Harness information for decisions

and innovation

• Expand access to markets

• Increase productivity and

efficiencies of scale

TRANSPORTERS

TESTING

FARMERS

FIELD DAYS

FEED

SUPPLY

AI &

EXTENSION

VILLAGE BANKS

OTHER RELATED

MEs HARDWARE SUPPLIERS

CHILLING or BULKING

FACILITIES

Advantages of the hub approach

■ Improved access to inputs and services

– Physical availability

– Quality

– Price (bulk purchase)

– Possibility to purchase on credit using the

“check-off” system

■ Improved access to milk market

– Chilling plant

– Or bulking raw milk centre (traditional hub)

EADD achievements

124%

0

1

2

3

4

5

6

7

8

2008 2012 2008 2012 2008 2012

Kenya Uganda Rwanda

Dairy income (USD/HH/day)

164%

64%

• About 200,000 farmers registered, although only 1/3

active suppliers at any given time

• Increase in household dairy income in all 3 countries

• 82 hubs supported, 17 hubs being „graduated‟

20%

35%

36%

8%

Exit types (%)

Graduation (Highperformance)

Phase Over to EADD-2

Phase over to otherplayers

Phase out (peri urban TMand poor performing)

From hub model to hub approaches

1. Hubs centered around provision of inputs and services

2. Hubs centered around bulking without cooler

3. Hubs centered around chilling plants

Organization of extension services and sources of funding, by stage

Stages Person in charge of extension

services

Sources of funding

Stages 1

and 2

„Liaison‟ officer, possibly a Board

member or the PO key staff

coordinates extension services

(such appointees are explicitly

tasked with that responsibility and

their capacity is enhanced

accordingly via EADD Support)

Training and other extension

services are fully paid by EADD,

but organized/ managed by the

PO. EADD and other players

provide much of the funding but

this time build the POs capacity

and thus EADD plays a

facilitative role.

Stage 3 A PO staff coordinates extension

services as part of other duties, e.g.

CP manager in charge of extension

if s/he has competence

PO starts cost sharing on

reducing scale for EADD

Stages 4

and 5

Full time qualified staff Extension costs partly or fully

paid for by PO

Gender in EADD

EADD I Proposed for EADD II

Gender analysis By product of

the baseline

“Know Her” - Gender analysis at various levels of the value

chains

Attention to

gender (and

youth)

limited “Design for Her” - Gender mainstreamed in all Major

Objectives + 1 Objective on Gender and Youth Empowerment

Partner in

charge

HI All partners - gender is mainstreamed in all Major Objectives

Activities Some Embedded in other activities based on analysis of gender

based constraints

Monitoring &

Evaluation

Limited “Be accountable to Her” - Sex and age group disaggregated

monitoring template

Profile case studies to gain deeper understanding of outputs

especially at HH level

Evaluation- undertake thematic studies on gender and youth

Stage Gate

• The stage gate tool scores sites on a 0 to 100 scale,

indicating progress towards sustainability.

• The business component includes 6 dimensions (business

start-up, governance, value proposition to farmers, value

proposition to market, profitability and capital structure)

while the production component includes 5 dimensions

(nutrition, genetics, animal health and management, milk

quality and extension services structures).

• Site scores determine stages, with sites below 20% in

Stage 1, those between 21% and 40% in Stage 2, 41% to

60% in Stage 3, 61% to 80% in Stage 4 and above 80% in

Stage 5.

Stage Gate

• On average for the 3

countries, the annual rate of

change is 8.3 points per

year, which translates into a

site reaching stage 4 (or 60

points) in 7.3 years.

• Sites in Kenya and Rwanda

progress significantly faster

than Uganda sites.

• Kenya sites move on

average at the rate of 9.8

points per year, Rwanda 9.4

and Uganda 7.5.

• Pre-existing sites progress

significantly faster than all

the other hub types