An overview of the Strengthening the Dairy Value Chain project in Bangladesh, delivered at the Market Engagement and Learning Event, September 2012.

1. Project overview
Strengthening the Dairy Value Chain Project
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Market Engagement Learning Event, September, 2012

2. Organogram
Team Leader
Manager- Technical Project Manager Project Manager-2
Marketing & Coordinator Manager Finance
Communicati M&E Gender PSO- 2
on &
TO (M&E) Training Administrati
ve Officer Project Officer- 6
M&E support
officer Field Facilitators-30
Manager
Access to Inputs Manager DFT
Field
PO-AI- 2 Project Officer PDO- Facilitators
(FL) Livestock (6)
Field Facilitators
(AI)- 2
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3. Geography
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4. Target Dairying Households
• Hamida Begum is
married, has three
children, works as a day
laborer and tends her
family’s two cows
• Average Household:
– Very poor
– Functionally landless
– $25 monthly income
– 1-3 cows
• Over 80% of SDVC farmers
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are women

5. Context and Challenges
• Part of a large agro economy/ agro residue based
• Smallholder farmers account for majority of national
production, but rely on subsistence methods
• 30% of national milk demand met by imported powdered
milk
• Limited access to productivity enhancing inputs and
markets
• Collectors and collection systems reduce trust and milk
quality
• Gender norms
• Lack of a supportive policy environment
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6. Theory of Change, Value Chain Enhancement
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7. Bangladesh Dairy Value Chain
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8. Producer groups
– 36,400 (82% women) farmers into 1280 groups
– 3425 farmer leaders (71% women)
– >80 % group graduated as A category
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9. Farmer Production and Income
Average Households
•More than 50 percent increase in average household-level
milk production
•97 percent increase in milk sales income for participating
farmers.
•In many cases, increase in milk productivity at household-
level is actually as high as 65 percent and increase in income
as high as 140 percent - which demonstrates what is possible
given the right conditions
•46 percent increase in household-level milk consumption.
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10. HH Profit-Loss Statement
(Sep’2011)
PL Indicators Baseline Latest % Change
(Aug'2008) (Aug'2011)
HH Income per Annum $109 $144 32%
HH Expenditure per Annum $71 $76 7%
HH Net Income per annum $38 $67 76%
Income =Milk sales + Calf + Cow-dung
Expenditure =Feed + Treatment+ De-worming + Vaccination
Expenditure is calculated based on In-milk cow population
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11. Bangladesh Dairy Value Chain
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12. Actors and Service Providers

13. Access to inputs
– 150 shops (42 women) reaching 30,000 farmers. Consistent
sales growth of up to 10 percent month-on-month for at least
48 Dairy Input Shops.
– 201 LHWs doubled their income (21 percent women)
– 56 AI worker trained and linked (5 women)
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14. Branded Dairy input shop outlet
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15. Bangladesh Dairy Value Chain
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16. Value Chain Transaction Transparency
Challenges
– Lack of transparency
across the dairy sector
in formal sector
purchasing practices
– Collectors and collection
practices
– Disincentive for quality
milk production
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17. Impact on Milk Supply Chain
• 90% of the participating farmers are receiving 20 percent
higher prices
• 40 % increase in milk collection for 75 percent of the
collectors
• Significant improvement in milk quality for processors
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18. Summary
On-the-ground accomplishments in:
1. Established high-performance producer groups;
2. Trained and established commercially viable Livestock Health
Workers (LHW)s and Artificial Insemination (AI) Technicians
3. Establishing an innovative network of rural dairy input supply
shops through a branded micro-franchise network
4. Introduced digital milk fat-testing (DFT) capabilities at
community collection points and chilling plants while
influencing fundamental practices how milk is bought in the
community collection points and chilling plants
5. Simultaneous increase in productivity and household 18
consumption of milk

19. Thank You
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