Cold Milk Hot Profits, Draft Report 3

Cold Milk Hot Profit Case Report

M. Hassanullah

Cold Milk Hot ProfitCold Milk Hot ProfitCold Milk Hot ProfitCold Milk Hot Profit: : : : A Case for Development of a Community Based Integrated

Product Market System

I. CASE IDENTIFICATION

1.1 What is the Case? This is a successful case of participatory development of a community based integrated market of milk, a highly perishable agricultural commodity. Bangladesh is in a transitional stage of graduating from subsistence to commercial agriculture. Farmers are eagerly trying to engage in commercial production of different high value commodities and are struggling to organize production system in a way to link with formal market system in order to maximize profits. In many occasions they are not succeeding due to inability to manipulate or control the market forces. The situation has worsened in cases of perishable products. Many development initiatives are now focused to assist the producers organize and link them to markets with limited success. Cold Milk Hot Profit Project is one such initiative to assist all stakeholders of milk industry to come together and play supportive roles in order to create a sustainable community based integrated marketing system for milk which will create a win win situation for all stakeholders and take the milk industry as a whole a step ahead for better income and livelihoods with greater focus to the needs of small and marginal producers. The projects worked in partnership with local NGOs for last one year and emerged as a success story. The Practical Action intents to replicate the system in milk or other commodity markets elsewhere. Its learning can also be shared by other institutions who are engaged in similar initiatives. 1.2 Location The case locates in one of the many so-called milk pockets of Bangladesh. It is in Birampur and Dinajpur Sadar Upazilas of Dinajpur district of Bangladesh (Map 1). These pockets emerged due to a multi-institutional local and national programs and projects to assist rural poor to supplement their income through rearing cows supported by micro credit programs of the government, non-government as well as credit and financial institutions with focus in poverty stricken areas. Dinajpur is one of the poverty stricken areas of Bangladesh. As a result, cow rearing became popular among relatively poor households of rural Dinajpur as a source of supplementary incomes. Birampur is a perfect rural setting while Dinajpur Sadar is under the influence of the District town. Milk production has increased but producers gained little due to price fall as local market is unable to consume the increased production at higher prices. Situation is exploited both by local

Map showing project sites


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processors and milk companies by buying cheap milk just above the break even point at about Tk.10.00 to Tk.14 per liter at different times of the year as the producers have no ability to store milk due to lack of chilling or processing industries. Producers stop milking theirs cows more than what their families’ need when price fall below Tk. 10.00 per liter. They prefer to feed the calves than to sale at this price. The location justifies the initiative to improve the community based initiative to improve the system of milk preservation, processing and marketing. 1.3 Significance The case has emerged as a visible proof that it is feasible to assist stakeholders of market to work together and create a community based integrated system of a commodity market to optimize their benefits. Though some more work is necessary, the case demonstrates enough merits replicating the system in other milk pockets in order to empower the small and marginal producers integrating with formal market system. Some of its elements as well as the whole system can be carefully internalized in designing marketing systems and making operational for other perishable, semi perishable or even non-perishable agricultural commodities. This is extremely important when many production initiatives of different agencies are frustrated due market failure to respond to the needs of small and marginal producers. 1.4 Purpose of the Case The purpose of writing this case is to document the emerging system of a community based integrated commodity market focusing its structure, elements, processes and institutional arrangements. The specific objectives are to:

• Stimulate expanding the horizon of thinking beyond production of any commodity • Use the case to promote learning among the professionals working in this field specially

the professional staff of partner NGOs • Communicate the system among the development practitioners of home and abroad who

have been endeavoring to make the market work for the poor. • Use the case to develop donor fundable larger projects covering wider geographic area

1.5 Methodology As the objective was to present the system as a successful case qualitative assessment was more emphasized than qualitative estimates of the parameters of the emerging community based participatory milk market system. The essential parameters such as contact and trust among stakeholders, production and consumption of milk, prices and value addition, business and enterprise development were quantitatively estimated through consensus of the stakeholders’ focus group discussions (FGD). There were 10 focus group discussions, one for each stakeholder group in each project site namely Birampur and Dinajpur Sadar upazilas. In order to make a comparison similar number of FGDs were also conducted in an adjacent upazila, namely, Nababganj upazila. The magnitudes of different parameters were estimated as rank, mean and frequency in order to compare and draw relationship where necessary. However, effort was made to create a quantitative basis of the assessment. Data format of FGDs is attached as Appendix A.


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II. EMERGENCE OF THE SYSTEM

2.1 Country Context Bangladesh is reported to have 23.4 million cattle of which 43% is expected to be cow and 10% cows are expected to be hybrid. National milk production is estimated as 1.4 million tons a year which meets only 13.58% of the nutritional needs of the population. Only 31.86 ml milk per head per day is available as against the requirement of 250 ml per head per day (Vivien Kuips: Developing Countries and the Global Dairy Sector Part II: Country Case Studies, PPLI Working Paper NO. 31. FAO, Rome, Nov. 2006). The deficiency is 87.26% a part of which is met through import, while large part of daily requirement remains unsatisfied resulting malnutrition. Because of high demand of liquid milk price of milk per liter is about Tk. 40.00 per liter in metropolitan cities as against the prevailing price of milk in the so-called milk pocket Tk. 12.00 to Tk.16.00 or as best as Tk. 20.00 per liter during the period of Ramadhan. Because of poor marketing system cows are not milked in the milk pockets and over milked in the suburban areas of metropolitan cities due to high prices. Calve mortality is as high as 15%. It is apparent that in spite of huge shortfall of milk production (87.26%) and high price in metropolitan cities production potential of milk pockets are not exploited due to market failure to respond to the needs of the small and marginal milk producers. As a result, national efforts of promoting cow rearing as a means of poverty alleviation is largely frustrated. 2.2 Traditional Milk Market Traditional milk market is characterized by highly impoverished market in a lesieze faire situation. Stakeholders, namely producers, feed and fodder providers, health service providers, milk traders and financiers operate independently through bi-lateral transactions at the disadvantaged of others as the product is highly perishable and preservation facilities did not develop at any level of operation. Bulk of the feed is dry paddy straw. Ingredients of concentrates are bought from feed shops having no quality standard or control. Being few in number they control the prices of feed as they wish. Very few can have free access to public sector veterinary services. Private sector Peravets sells medicines and vaccination facilities as and when requested by the farmers who know them at a relatively higher prices and fees. New generation of farmers are lacking milking skills. Besides Goyalas1, the milk collectors or traders, also feel discouraged to buy milk when it

1 Goyala is a cast of Hindu communities who traditionally rear cows as well as collects milk from the farmers and sell it to the consumers as well as traditional milk processors. They also process milk to make

Fig.1: Traditional Milk Market In A Upazila

Local Processors

Pera Vets

Feed Shops

Fodder Farmers

NGOs and BanksEquipment Suppliers

Milk

ProducersMilk

Collectors

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O

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S

Large Companies

Public sector Veterinary Services


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was not milked in front of them as they fear of adulteration. So farmers weight until Goyalas come and milk their cows and take the milk to the market. Because they are few in number and can carry a small quantity of milk (around 40 kg) at a time they do not buy milk regularly. When they come to buy milk they either over milk or under milk the cows to suit their capacity. When they do not come cows are milked for only home consumption allowing the calves to drink the milk. Consumers of liquid milk buy from both Goyalas and farmers with fear of adulteration. When ever possible they prefer to buy the milk when milked in front of them. Major share of Goyalas milk is sold to local processors making sweets and yogurts. They often pretend to be unable to buy for very many reasons forcing the Goyalas to sell at lower prices resulting lower payment to the producers. Large companies often open up centers to collect cheap milk without establishing contact with farmers collecting milk irregularly from the Goyalas. NGOs and financial institutions lend money for cow rearing. But the system and facilities are not transparent and known to the majority of the stakeholders. The stakeholders have no formal bilateral or multi-lateral linkages. They operate in isolation. Iinfrastructures, lositics and equipment of milking, containers, preservation, transportation, strorages and processing remained age old. The system perfectly reflects subsistence production and consumption system within a community of an upazila. 2.3 Problems of the Traditional System The key problem of the traditional system is lack of preservation and storage facilities which is holding back breed improvement for higher production simply because what to do when local market is incapable to absorb increased production because of poor milk consumption habit. It is holding back establishing linkages with outside market which requires transitional storage. The second problem is lack of standards and quality control system for both inputs and output. Rubbing, smelling and seeing color are the means of ascertaining quality which in most cases highly deceptive. As a result, stakeholders are always suspicious and afraid of making transactions with each other. Thirdly, all stakeholders intend to improve the system but have no access to knowledge and skills of improved technologies. Fourthly, there is no institutional mechanism to come together and take initiative for corporate action in order to solve the problems. The last but not the least is the lack of local leadership taking initiative for improvement of the milk industry as a whole. As a result, potential of milk production as a means of poverty reduction remained unrealized in this so-called milk pocket. 2.4 Cold Milk Hot Profit: a New Initiative Cold milk hot profit is a new initiative of a learning phase for the development of a participatory community based integrated commodity market. In this case the commodity is milk. The idea of this initiative stemmed out of a PMCA to make market work for poor conducted by PAB from its own resources during January-March 2006. The Practical Action Bangladesh and partners wish to use the emerging ideas and systems in many other commodity production programs directly focused to rural poverty alleviation in the extreme agro-ecologies like drought and flood prone areas of the country. Besides, it aimed to empower the professional team involved in this project as well as teams working in NGOs and development agencies of the country along this line. The project was a one-year project starting from April 2006 and was extended for another one year ending in March 2008. It aims to increase income and diversify the livelihood strategies of the marginalized and small milk producers through improvement of quality and quantity of milk butter, butter oils and sweets. Now a day the vocation has also been assumed by anybody as a business or trading venture.


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production. The numbers of directly targeted beneficiaries of the initiatives are 304 marginalized and small dairy farmers, 12 Peravets, 7 Goyalas (milk collectors) and 18 processors of 10-15 villages. However, the project also encourages stakeholders of outside targeted beneficiaries to adopt the systems and procedures and come under the fold of the emerging system. In fact some of the farmers formed groups and become part of the system to accrue the benefits. There is report that a total of 117 farmers voluntarily formed groups and joined the group marketing system of the project. 2.5 Practical Action and Partners This new initiative has been initiated by Practical Action Bangladesh (PAB). Practical Action (formerly Intermediate Technology Development Group) started working in Bangladesh in the early 1990s. It has evolved over time to meet the challenges of poverty, inequality and vulnerability. Deeply committed to helping the poor, its work on appropriate technology as a means to improve poor peoples’ livelihoods has been flexible and responsive to local conditions and needs. PAB has begun implementing large scale programs in the technology areas of food production, agro-processing, small enterprise development and light engineering workshops. It works directly as well as through partner NGOs in geographically focused areas with high incidence of poverty in such districts as Faridpur, Gaibandha, Jamalpur, Bogra, Gazipur, Dinajpur and Barisal. The aim is to ultimately scale up successful experiences and achieve positive impacts and bring change in poor people’s lives throughout the country. The PAB has been using Cold Milk Hot Profit project as testing ground of concepts and methods of making market work for the poor. It has been working through two local partner NGOs, one in each Upazila, namely, Development Council (DC) in Birampur and Self Initiative for Development Program (SIDP) in Dinajpur Sadar Upazilas to mobilize stakeholders and organize activities at grass roots level. The activities are guided, monitored and controlled by regional office of PAB in Dinajpur. Development Council (DC) was established in 1993 and has registration in the Department of Social Welfare and Bureau of NGO Affairs, Government of Bangladesh. Based in Birampur Upazila it has been operating in 4 neighboring upazilas among 55,588 beneficiaries organized under 570 groups. It operates a credit fund of Tk. 2.68 million and accumulated a saving fund of Tk. 0.14 million. Besides its normal credit program presently it has been implementing 8 donor funded projects addressing various economic, social and gender issues. It has been working as partner NGO of PAB to implement Cold Milk Hot Profit Project. Self Initiative for Development Program (SIDP) was established in 1997 and registered under Department of Social Welfare, Government of Bangladesh. Being located in Dinajpur Sadar it has been operating in neighboring Birol and Chirirbandar Upazilas. It operates a credit fund of Tk. 5.00 million and accumulated a saving fund of Tk. 0.76 million. It has been implementing several donor funded projects. It is working with PAB as PNGO to implement Cold Milk Hot Profit Project. 2.6 Activities Performed Since the initiative is a learning phase there was no rigid target of performing activities. It is flexible working on the basis of the principle, “as and when necessary”. However, major activities performed by the PNGOs in collaboration with PAB were as follows:

• Conduct baseline survey on milk production • Select operational areas on the basis of intensity of poor living in an area


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• Organize milk producers’ groups • Identify and select group members with 60% representation of women • Conduct orientation training for the group members • Prepare lesson plans for training and organize learning sessions • Organize weekly meetings of the groups • Deploy resource persons and Peravets to conduct the learning sessions • Form groups of Peravets, Goyalas and processors and orient them with new concepts and

systems of milk market • Organize vaccination programs in groups • Conduct PMCA to identify constraints and opportunities of all stakeholder groups to

develop common understanding and action plan • Conduct exposure visits to broaden the vision by seeing innovative approaches practiced

elsewhere • Linking stakeholders with financial institutions in order to support expansion of their

businesses • Establish milk collecting centers and use it as center for meetings, learning sessions and

link them with Peravets and Goyalas • Motivate collectors to accept a maximum commission of Tk. 2.00 per liter • Organize training with public sector agencies namely Department of Livestock and

Youth Development • Link the groups with livestock Officers to establish contacts for expert consultations and

treatments • Assist Peravets to maintain records of providing services and follow up cases where

necessary • Establish relationship matrix where representatives of all stakeholders exchange views

and re-assess their role and responsibilities to take milk industry a step ahead • A community based chilling plant is in the pipeline to safeguard the spoilage and increase

bargaining power • Assist stakeholders to access and introduce innovations in their works

2.7 The Emerging System The emerging system of the community based integrated system of milk market under Cold Milk Hot Profit project can be briefly narrated as follows: Firstly, all stakeholders namely milk producers, grass cultivators, feed shop keepers, Peravets, Goyalas and processors were organized as functional groups. They are in groups not by merely listing but by having group leaders, meeting at regular intervals, recording proceedings of the meetings, make joint decisions and act as a corporate body to deal with internal and external environment. Farmers are grouped on the basis of a cluster of milking families, but other stakeholder groups are based on the entire geographical area of an Upazila. Although initially groups are formed with selected number of beneficiaries, latter all were encouraged to come under the fold of the groups. Some milk producers are voluntarily forming groups and are coming under the fold of group production and marketing system. Peravets, Goyalas and processors outside the project are also coming under the purview of the groups. Secondly, milk centers, a fixed place of gatherings to perform various activities, were established in each producers group where Peravets meets producers once in a week to vaccine the animals, offer treatment to the ailing cows and calves and conducting training on cow rearing and Goyalas


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meet every day to collect milks at specified time in a day. Specialists and veterinary doctors also utilized the opportunity to meet the producers in groups either fortnightly or monthly. Peravets and Goyalas are benefited by getting opportunity of increasing their volume of business when meeting in groups. Thirdly, relationship matrix, a platform of contact and interaction among representatives of stakeholder groups, has been established to acquaint and appreciate each other problems and constraints and undertake joint and consensus steps to redress the problems in order to optimize benefits of all. Fourthly, intra and enter groups linkages were established at two levels at producers level in the milk centers and in quarterly meeting of representatives of all stakeholders in the central level where relationship matrix is reviewed and rectified where necessary. 2.8 Innovations Introduced In order to increase the operational efficiency of the system innovations were introduced in six operations of the system namely milk production, grass production, treatments, milk collection and milk processing and institution building (Fig. 3). At the production level, artificial insemination, feeding chart, de-worming, regular vaccination, timely milking, and cleanliness were introduced. Most producers know the specific practices of improving breed, increasing production, maintain quality, and ensuring hygienic condition. Secondly, being the most critical factor of health and breeding ability of cows both subsistence and commercial cultivation of green grass, namely Napier was introduced among the beneficiaries of the project. It is just an introduction to learn the cultivation practices and assess economic feasibility as crop as grass markets are developing fast with increase of improved breeds of cows of higher productivity. Most farmers are highly encouraged to plant grass in the homestead or adjacent places to meet domestic needs of 2-3 cows. Some are encouraged to cultivate grass on a commercial scale as the region is predominantly of high land having high intensity of natural and artificial forest. Thirdly, innovations were introduced in vaccination and treatment of animals with bio-security and hygienic practices. Perverts were trained and supplied with new syringe and vaccination kits. This has improved the credibility of Peravets. As a result, demand for their services has been increasing.

EMERGING MILK MARKET SYSTEM IN PROJECT UPAZILA (BIRAMPUR )

Local Processors

(5)

Vet Doctors (2)

Pera

Vet

Feed Shops (4)

Fodder

Farmers (9)

Partner NGOs(2) & KSB/BKB/IBL

Equipment Suppliers

(2)

Milk Producers

19 Groups

Collectors (6)

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COLD MILK FOR HOT PROFIT PROJECT

LargeCompanies

(1)

Fig. 2: Emerging Milk Market System in Project Area


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COLD MILK FOR HOT PROFIT PROJECTEMERGING MILK MARKET SYSTEM IN PROJECT UPAZILA (BIRAMPUR )

Local Processors

(5)

Pervets (8)

Feed Shops (4)

Fodder Farmers (9)

Partner NGOs(2) & KSB/BKB/IBL

Equipment Suppliers

(2)

Milk Producers

19 Groups

Collectors (6)

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Large Companies

(1)

Public Sector Veterinary Services

Innovations: New syringe Vacc. Kits

Innovations: New variety Prod. Tech

Innovations: AIs Feeding Chart De-worming Reg. Vaccine Timely milking Cleanliness

Innovations: Ceiling plant Cream separator Vet

Innovations Lactometer

Fig.3: Innovations Map of the Integrated Milk Marketing System

Institutional Innovations: Milk centers Stakeholders’ platform Relation matrix


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Fourthly, lactometers were introduced in milk collection in order to ensure quality of milk to restore confidence of processors and consumers. Both milk producers and the Goyalas now know what lactometer is and how to use it. Many producers exhibit ability to improve lactometer reading by manipulating feeding cows with variable proportion of concentrates. Goyalas do not purchase milk which does not contain minimum level of fat content and use to get higher prices when lactometer reading is over 30. Fifthly, chilling plant, cream separator, and yogurt vets are being introduced at processing level to preserve milk and produce quality sweets and yogurts faster. Further efforts will made to link with outside markets for increased volume of milk products. This will provide scope of higher value addition at community level providing opportunities of higher income and wages. Sixthly, innovations were introduced at institutional level to improve the efficiency and sustainability of the operation. Grouping of all stakeholders is a shift from bi-lateral to multi-lateral contacts and transactions among stakeholders which developed spirit of partnership and improved power of negotiation and bargaining. Establishment of milk centers at producers’ level is a key innovation to bring all stakeholders at producers’ level to accomplish all transactions, contracts and exchange of information in one place and in a group. At the community level establishment of a stakeholders’ platform in order to review the operation of the system through a mechanism what is called relationship matrix. It helps continuously review the role and responsibilities of all stakeholders quarterly with a pledge to improve the system continually 2.9 Role of Local Stakeholders In this system stakeholders viz. milk producers, grass cultivators, feed shop keepers, Peravets, Veterinary Doctors, Goyalas and processors perform specific roles to operate and sustain the system on a continuing basis in a spirit of cooperation and partnership. Their roles and responsibilities are briefly presented here; Milk producers: Milk producers are mostly women (over 60%) of the marginal and small farm and non-farm families. Intensity of cow rearing among rich farmers is relatively low due to scarcity of labor required for grazing in the crop field, collection of grass and caring the animals. Contrary to rich families agricultural labor can not make investment in cows and fear of steeling which is rampant in certain rural areas. Their responsibility is to maintain the groups and milk centers to facilitate group contacts of Pervets, Goyalas and other service providers for training, treatment and marketing milk. Grass cultivators: Grass producers are milk producers themselves or others who cultivates grass for commercial purpose. There is potential to increase their number as the demand of grass is increasing as the milk producers are increasingly learning the value of green grass feeding to cows. Numbers of hybrid cows are also increasing. Their responsibility is to maintain groups, identify high yielding grass varieties, continue to cultivate grass and arrange contractual sells among milk producers and maintain contact with public sector extension agencies for access to grass production technologies. Feed shop keepers: There are specialized shops for selling cattle and poultry feeds and its ingredients. Some times shops are combined with livestock medicines. The owners play important role to supply prepared feed or feed ingredients to the cattle rearers. They have responsibility to find out ways including exploring collection and storage of low cost local ingredients to supply good quality feed or feed ingredients at reasonable prices in order to keep


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milk production competitive in the local market. They seem to be encouraged to improve their operation. They can do it when they remain in group and operate in partnership with other stakeholders groups. Peravets: Peravets are a group of persons or technicians who were trained by government and non-government organizations to provide vaccines and preliminary treatment services to animals in view of great shortage of public sector veterinary services. They operate as private practitioners. Most of them also possess medicine shops. Their responsibility is to improve quality of services, medicines and maintain groups and schedule of visits to milk producers groups in milk centers in order to increase the demand of their services and increase their incomes. They must also represent their activities in Stakeholders Platform to review relationship matrix and remain in partnership with all other stakeholders. Veterinary Doctors: They are professionally qualified Veterinary Doctors of public sector Livestock Services stationed in the Upazila complex. Apart from their public service duties they often attend private calls for animal treatment. They avail the opportunity of having contact with different stakeholders by attending learning sessions at milk centers or Stakeholders Platform to review relationship matrix at the Upazila level. Their responsibility is to maintain the partnership of stakeholders and avail the opportunity of contacts and interactions with stakeholders by periodically attending learning sessions and review of relationship matrix. Goyalas: Goyalas are the bridge between the production and marketing system. They buy milk from the producers and sell to the consumers and processors in distant markets. They attend milk centers everyday at a fixed time and buy milk. They have the responsibility to improve their capacity to buy and carry the increased milk to traditional as well as alternative markets. They must also act in group and remain in partnership with all other stakeholder groups. Processors: Processors are the last group of stakeholders at the far end of the value chain playing significant role in value addition to milk and sustain the emerging system. They buy milk from both producers and Goyalas and process various types of sweets, butter oils and yogurts almost day to day basis as they also do not have suitable storage system. They were formed as group who also take part in stakeholders’ platform in order to review the relationship matrix. Their responsibility is great to absorb increased milk production as the producers have no scope to sell milk beyond local market.


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III. IMPACTS OF THE SYSTEM The project is operated only for one year with further extension of one year in two upazilas namely Birampur and Dinajpur Sadar. It is premature to assess the progress in a year in order to show a trend. However, to have insight into the areas of impact an attempt was made to have a comparison with prevailing condition of an adjacent Upazila, Nobabganj in terms of some selected indicators. The observations are briefly summarized. 3.1 Contact, Trust and Exchange of Information The very essence of a value chain is partnership. Contact, trust and exchange of information are the important elements for development and sustainability of partnership. The intensity of contact and trust was assessed by the stakeholders and was to be as follows: Table 1: Intensity of Contact and Trust among the Stakeholders

Contact Trust Stakeholder Groups

Project Site 1 Birampur

Project Site 2 Dinajpur

Non-project Site

Project Site 1 Birampur

Project Site 2 Dinajpur

Non-project Site

Milk Farmers 7 7 3 -2 +3 +1 Fodder Producers 4 2 0 0 +1 0 Feed Shops 4 5 1 0 +1 0 Peravets 4 3 0 0 +2 +2 Vet. Doctors 3 2 0 0 +2 +2 Milk Collectors 5 5 2 -1 +2 0 Milk Processors 3 4 1 +3 +1 +1 Financers 2 2 0 0 +2 +1 Consumers 4 2 1 +2 +1 +1

Note

Contact:7=daily; 6=weekly; 5=fortnightly; 4=monthly; 3=quarterly; 2=bi-yearly; 1=yearly; 0=none: Trust:+3=Strongly trust; +2=trust;+1=to some extent; 0=Neither trust nor distrust, -1 to some extent distrust; -2=distrust; -3=Strongly distrust

Source: Survey Data Contacts among stakeholders are relatively high in project sites as compared to non-project sites. Trust among stakeholders also exhibited high in one project site (Dinajpur) as compared to non-project site. Serious attention was noticed to improve trust among stallholders of Birampur. Exchange of information takes place during the contacts with each other which is almost formalized in the project sites on regular intervals. Generally, exchange takes place inside the groups among members of the group and among the groups in the milk centers and Stakeholders Platform during review of Relationship Matrix. Information of production, quality, input and services availability and prices takes places during those contacts which keeps the stakeholders updated with the production and market situation. Such phenomenon does not occur in non-project site.


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3.2 Knowledge and Skill Development All stakeholders were initially trained in their respective vocations which were further intensified in their weekly, monthly and quarterly meetings which were attended by official of public sector agencies, banks and PNGOs. Such events are completely absent in the non-project sites. During meeting with the stakeholder groups individuals of project areas clearly demonstrated their higher knowledge and skills gained through the process as compared to that of the non-project areas. Majority of the milk producers outside the project quite frankly endorsed that they do not have any access to the public sector extension and veterinary services. 3.3 Production and Consumption One of the major concerns of the project was to increase production and consumption of milk partly to increase income and partly to reduce mal nutrition among marginalized rural population. Assessment shows that production of milk per cow per day as well as consumption of milk per farm and urban families are relatively higher in project sites as compared to that of the non-project site (Table 2). Increased production is the result of improved feeding and health care of the animals which are being enforced every fortnightly in the learning sessions conducted by the service providers (Goyalas and Peravets) supported by officials of PNGOs and public sector Livestock services. Contrary no such system is in operation in the non-project site. Consumption per farm and non-farm families is also higher in project sites which were perhaps influenced by increased production. Table 2: Production and Consumption of Milk (Lit./Day)

Sites Production Per Cow

(Lit./Day)

Consumption Per Farm Families

(Lit./Day)

Consumption Per Urban Families

(Lit./Day) PS1(Birampur) 1.97 0.57 0.77 PS2 (Dinajpur) 1.66 0.45 0.67 NPS (Nobabganj) 0.68 0.24 0.49 Note: PS=Project site, NPS=None project site 3.4 Quality Improvement Quality improvement is the key component of the system to restore confidence of all stakeholders including consumers to the emerging system. Introduction of the use of lactometer among milk producers as well as Goyalas with rigorous training have improved the situation significantly. Farmers now know how to measure the quality of their milk and how to manipulate feed and health care system to increase the quality of milk. Many of them expressed proudness that her/his milk consistently giving lactometer reading above 31. Processors also endorsed that milk from group members of high butter fat content and use to pay relatively higher prices as compared to that of the non-members. 3.5 Price Increase and Stability Prices seem to vary due to variation in supply of milk which varies due to seasonal variation of availability of feeds and green grasses as well as climatic condition. Demand of milk also varies due to various occasions and local ceremonies. However, average monthly farm gate prices seem to vary from Tk. 16.00 to Tk. 25.00. The highest price prevails in the Ramadhan and in dry


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seasons. In the non-project area also price increases in dry and Ramadhan months but price falls as low as Tk. 10.00 per Liter when many farmers do not milk their cows. Table 3: Month Wise Farm Gate Prices of Milk in Project Areas

Price (Tk/Lit) Months

Lowest Highest Average Price

(Tk./Lit) January 20 25 22.50 February 18 20 19.00 March 16 18 17.00 April 16 18 17.00 May 16 18 17.00 June 20 22 21.00 July 16 17 16.50 August 16 18 17.00 September 16 18 17.00 October 20 25 22.50 November 20 25 22.50 December 20 25 22.50 Source: Survey data One important achievement of the project site is that producers and the Goyalas have come to an agreement that Goyalas will receive a commission of Tk. 2.00 per liter over the prices offered by the processors, the ultimate bulk buyer of milk. So long it is working well in the project sites. In its absence the Goyalas of non-project area enjoys buying milk at Tk.10.00 per Lit. In that case chances of adultration are also high to recover the cost of production. 3.6 Value Addition and Product Diversification Value addition takes place in two stages namely production and processing. At the production level all efforts were made to assist the producers increase production by adding more and better feed and health care. In processing project endeavored to diversify the products and make high value milk products. Value additions at two levels are estimated to be as follows: Table 4: Amount of value addition at production and processing level

(Tk/Liter of Milk) Sites Production Processing PS 1 (Birampur) 5.96 52.07 PS 2 (Dinajpur Sadar) 7.12 59.00 NPS (Nobabganj) 4.25 25.00 Note: PS=Project site, NPS=Non-project site In the project area there are no value addition activities at feed sellers and Goyalas level. The formers do not prepare and pack any composite feed and sell high quality prepared feed. They sell ingredients as available in the market. The Goyalas also collect milk and carry to the consumers or processors for sales. In the non-project areas like Nababganj Goyalas prepare chhana an intermediate product to increase shelve life of milk in order to have breathing time to sell the milk to a distant Upazila headquarter. As a result, value addition both at producer and processor levels is relatively lower than that of project sites. The Goyalas add about Tk. 20.00-Tk.30.00 value by producing chhanna.


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3.7 Business Development Services One of the lacunas of the conventional development approach is the tendency of providing business development services by the project official themselves. As a result, development initiatives fall flat with the end of the project. The project adopted an approach of encouraging stakeholders to provide services to the producers and processors. In this system two stakeholders viz. Peravets and Goyalas play a significant role in providing treatment and marketing services and they were neatly integrated with the system providing services to the producers. Initially, they were encouraged with some incentives to attain and conduct learning sessions. Now they are voluntarily participating as they understand that their involvement help increase the demand of their services and hence increase their incomes. Such opportunities do not exist in the non-project areas. 3.8 Growth Micro Enterprises The system has stimulated the growth of micro enterprises in production and service sectors. Many more farmers are encouraged to rear cows due to price stability and increased production of milk due to increased knowledge and skills of animal husbandry practices. Some of them emphatically trying to rear hybid cows and seeking financial assistance to expand herd. Banks and financial institutions are taking opportunity to increasingly finance cow rearing for example Employment Bank of Birampur advanced 180 loans for cow rearing as compared to total number of 392 loans advanced to SMEs. Similar situation is observed in BKB and IBL. All of them occasionally attend training sessions as well as Stakeholders Platform to review relationship matrix at the Upazila level organized every quarterly. Number of service providers for example, feed shops, Peravets, Goyalas as well as processors has been increasing. Their income has also been increasing. They have been expressing that the emerging system will stimulate further growth of micro enterprises both in production and service sectors if supported few more years in order to institutionalize the system with linkages, contracts and access to technologies. 3.9 Participatory Market Mapping (PPM) Introduction of Participatory Market Mapping (PMM) has increased the understanding of all stakeholders about the milk market prevailing in the community, its problems and constraints as well as probable solutions. It has increased trust and confidence and an aspiration for improvement of the system jointly. It clearly indicates who should do what to improve the system. 3.10 Institutional Development The project has created an important impact of developing an institutional arrangement integrating all stakeholders of production, input supply, servicing, marketing and processing which are otherwise absent in traditional milk marketing. It has emerged as a system linking all of them and supporting each other. Establishing stakeholders groups, milk centers, conducting learning sessions and reviewing relationship matrix periodically, evaluating performance of stakeholders are the key elements of the system.


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IV. PROGRAMS IN THE PIPELINE 4.1 Intensification of Breed Improvement Program

The project has created a strong knowledge and skill base of cow rearing among the small and marginalized producers which has set a stage of switching from rearing traditional breeds to hybrid cows. A very few beneficiaries have been rearing one or two hybrids with success producing about five times (10 Lit./day) more milk from a cow. It has created desire among fellow rearers to produce cross breed cows developed through artificial insemination (AIs). One or two AIs were conducted every month. The progress is a very slow. The local management of the project including PNGOs is now planning to conduct a large scale AIs through heat synchronization process with the help of local public sector Veterinarians. Some of the beneficiaries are planning to have credit from banks to buy hybrid cows as the banks have increased loan ceiling for cow rearing. This will increase milk production manifolds calling for expansion of marketing facilities to reach regional and national milk markets.

4.2 Formalization of Linkages with Financial Institutions

Local branches of all commercial as well as specialist banks have a loan portfolio to finance small and micro enterprise in which cow rearing has a significant place. But such venture is mostly independent of this project. As a result, the borrowers have no technical and marketing back up to make the investment profitable. Managers of local branches are often invited to attend Stakeholders’ Platform for development and review of relation matrix. But no tangible program could be developed yet. Many beneficiaries desire to have more than one cow in order to have production of milk though out the year for an even distribution of incomes. They also want to scale up the operation. As such, they are urging to have funding for expansion. Discussion with the local braches of banks such as IBL and EB exhibited their interest to have joint program to finance expanded operation but such program needs to be organized through their headquarters. The system will get great impetus if such program is organized through headquarter of PAB and concerned banks.

4.3 Intensify Promotion of Grass Cultivation

Cultivation of Napier grass has been introduced this year among a dozen of farmers who are also milk producers to meet grass needs of their own cows. Some of them were damaged due to unfavorable weather at the time of planting. Farmers are encouraged and seem to continue cultivation to meet their own requirement. When intensity of hybrid cows will be increased requirement of green grass will be increased manifolds as it has tremendous impact on the health, fertility and productivity of cows. Commercial cultivation is also feasible as the demand is expected to increase. Already several small grass markets are operating mainly through collection of natural grasses from forest and wastelands by the tribal as well as local people. Some are selling paddy plants which are not expected to give good yield. The management of the project has been planning to intensify promotion of grass cultivation both at subsistence and commercial levels.

4.4 Feed Management

Although initially not emphasized there is an increased attention of stakeholders and PNGOs toward improvement of feed management? The milk producers are trying to improve or adjust


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feeds to increase milk output and quality. PNGOs are now trying to organize the feed shop owners as group and bring them under the system as one of the stockholder groups for improvement of quality of feed ingredients or toward preparation of mixed or prepared food for different stages of milking cows in order to reduce the cost of feed which constitutes major portion of production cost of milk.

4.5 Innovation of Processing and Storages

Production of milk has been more or less organized to meet the demand. Attention has now been focused to storage and processing. The project management has planned to introduce yogurt vets, cream separator and chilling plant at processors’ level. The equipments have been purchased and are waiting for demonstration. A dairy fair has also been planned in the coming winter to introduce the new dairy technologies. Storage is a very much critical issue as producers, Goyalas and processors are equally vulnerable to spoilage and price fluctuation. Where to introduce what type of milk storage system with what capacity and costs are the most critical issues that needs thorough economic analysis.

4.6 Bringing all Stakeholders under the System

Only about 300 small and marginal milk producers are targeted to bring under groups. The Peravets and Goyalas operating within their vicinity are also brought under the system. Their operations hardly cover 10% of the milk market of an Upazila. The project management has been encouraging outside stakeholders to come under the fold of the system voluntarily. Some responses are observed. A few voluntary groups have come under the fold of group marketing. Some more work is necessary to stimulate the potential stakeholders to form groups and join with group marketing and relationship matrix introduced by the project.

4.7 Contract with Milk Companies

BRAC, an internationally reputed national NGO, has established a milk collection center of procuring 2000 liter milk a day with chilling facilities about a few km away from Birampur Town. They have reduced the capacity to 1000 liters a day due reduced supply of milk. It is indeed a puzzle that in one hand producers unable to sell milk while companies do not get enough supplies forcing them to reduce the operations. It is indeed a problem of contact, trust and linkages between the large companies and small and marginal producers. Project management has explored the possibility to link small producers with not only BRAC but also other large companies.

4.8 Formalization of Institutional Base

An institution base has been created at group and community levels. At the group level individual stakeholders interacts with the fellow members of the group and exchange views and information to the benefits of all. The second institutional framework has been created at producers level in the form of milk centers where all service providers in turn meet the producers for their better performance in terms of productivity, quality of milk and maintaining health of the animals with proper care. Third level of institution was created at community level in the form of Upazila Stakeholders’ Platform where all stakeholders meet once in a quarter to review what was improved and what will have to be done in order to take the industry as a whole a step further. So far all these were done under the sponsorship of project management and PNGOs. Stakeholders expressed satisfaction with institutional arrangement and taking part actively. It is now time to formalize the institutions to give legal status to conduct them as an independent legal business entity for legal transactions, contracts and conduction of business, as an exit strategy of the sponsors and partners. The project management is working along this line.


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V. SUSTAINABILITY AND REPLICABILITY

5.1 Sustainable Changes The fundamental change in approach of implementing this project is, “instead of providing inputs and services by the project, the management of the project encouraged and supported the local stakeholders to provide inputs and services to the producers as business ventures”. It has been observed that through this initiative the inputs and service providers could increase the demand of their inputs and services. It has increased income of Peravets, feed shop owners, Goyalas and processors alike. They expressed satisfaction and desire to maintain and improve the system in order to develop their own businesses. However, the specific changes that are likely to contribute to the sustainability of the project are as follows:

• The structure of the system allows all stakeholders to link with each other, exchange information, develop trust and confidence and increase the profitability of their operations.

• Introduction of quality control measures improved the quality and safety of the product which has restored the trust and confidence of all stakeholders including local consumers on the product quality and safety.

• Willing and dedicated entrepreneurs have emerged to take lead and maintain the system. Now they are voluntarily participating in the activities of learning, review improvements and take actions where necessary.

However, there is a conditionality of achieving sustainability of the system. So long activities were initiated by facilitators, the PAB and PNGOs. Now, it is time that the stakeholders are assisted to organize themselves as legal body to act independently. More specifically the professional groups should be registered as trade body; farmers groups are organized as cooperative or association to help them emerge as a single entity in an Upazila to strengthen their bargaining power. Stakeholders’ Platform should be organized as a Trade Association of representatives of all stakeholder groups and farmer association. Therefore, future is focusing on to extend coverage and institution development. This will require some more time with additional resources. 5.2 Replicability The system is replicable to traditional milk markets elsewhere as well as markets of other perishable agricultural products when production is in scattered small and marginalized units, stakeholders are not linked with each other and the transactions are to be made almost day to day basis due to lack of scope of preservation and storage facilities. Traditional milk markets of all so-called milk pockets of the country are more or less similar in structure and functions. Milk producers and Goyalas are in vulnerable position of low and fluctuating prices. Large companies generally stretch their milk collection network all over the country in order to collect cheap milk from the milk pockets. For example Milk Vita has 65 chilling centers from 1000-5000 liter capacity including one in project area in Birampur. They buy milk from Tk. 15.00 to Tk. 16.00 depending upon the fat content. Considering the discount for lower fat content price offered was not competitive in Birampur chilling center. As a result, supply of milk has dwindled down and capacity of the chilling plant has been reduced form 2000 Lit. to 1000 Lit. It might even be closed due to inappropriate pricing and purchase policy. It implies that even though large companies


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extend purchase facilities the price structure remains unchanged. Therefore, system introduced by the project is replicable to all milk pockets even though large companies have purchase programs. System is also replicable to traditional markets of pockets of high production of vegetables, fruits, fishes, broilers or even pulses and oilseeds when produced by small and marginalized farmers in remote areas having no linkage with different stakeholders. But in theses cases fine tuning will be required to suit conditions of specific locality and commodities. 5.3 System Improvement and Up-scaling The project has been working for last one year only which is not a sufficient time to institutionalize a system. The emerging system needs a great deal of efforts to attain perfection in respect of coverage, linkage, participation, institutionalization and leadership development to become a self managed system. During extension period for another one year more work has been planned along this line as an exit strategy of the project. While work on perfection is going on the system needs to be documented giving access to all development practitioners and agencies through various communication media so that their vision is also extended and the system is adopted in case of different commodities of agriculture where small and marginalized producers involved with very little linkage with formal markets.


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VI. LESSONS LEARNED This is the learning phase of the project in order to comprehend the traditional milk market at grass roots level and apply the knowledge and experiences to help stakeholders evolve a system that would create a win win situation for all of them. The situation may vary from place to place, community to community and commodity to commodity. Major lessons learnt having general applicability is briefly presented here. 6.1 Inquisitiveness and Adaptation Rural people irrespective their levels of education and social status have exhibited extraordinary inquisitiveness and ability to lean and adapt technologies for upgrading their livelihoods. The most of the beneficiaries, particularly producers are illiterate women of poor and marginalized farm and non-farm families. They are struggling to sustain their livelihoods against flood, drought and economic hardships. In spite of all these odds they exhibited an unparallel inquisitiveness and ability to adapts high level knowledge and skills of rearing cows, maintaining hygienic condition, adjusting feeds to increase fat content of milk, testing milk, treatments, etc imparted by Peravets and Veterinary Doctors, and other relevant officials and experts offered through simple learning sessions at milk centers established in an open place of some one’s homestead. Many of them now aspire to rear hybrid cows if they are supported to buy such cows. Many (over 80%) of them exhibited remembrance of technologies presented in previous learning sessions in subsequent review and learning sessions. Given carefully planned lessons knowledge and skill based can be tremendously increased among the illiterate men and women of small and marginalized farm and non-farm families. 6.2 Responsiveness to Partnership People are responsive to make partnership where business interest is visible. In a traditional market the stakeholders of a commodity very much eagerly endeavor to squeeze economic benefits from each other depending on degree of vulnerability. In this process small and marginalized producers are more squeezed offering unbelievable low prices of the products at harvest though consumer prices are high in the neighborhood. The project promoted the idea of partnership instead of isolation and multi-lateral to bilateral transactions among the stakeholders. The stakeholders exhibited positives responses taking part in meetings, workshops, and dialogues and help and cooperate with each other to create a better business environment in the milk sector. As the business interest is increasing they are becoming more responsive to partnership. This spirit needs further promotion to institutionalize the system through development of local leadership. 6.3 Voluntarism in Participation People voluntarily participate in the system when there are opportunities to accrue economic benefits. Initially there was lots of skepticism among the stakeholders. The farmers were not sure what benefits they could accrue. The Peravets and Veterinary Doctors were provided incentives by the PNGOs to participate in learning sessions. Now farmers are forming groups voluntarily and participate in group marketing. They are now demanding support for learning technologies and quality control measures. Similarly, the Peravets and Goyalas now do not need persuasion. They are participating voluntarily in the learning sessions offering new knowledge and skills of


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cow rearing and milk marketing as it is providing them scope of establishing linkage to expand their businesses. Veterinary Doctors and officials of banks and financial institutions are taking keen interest to utilize the system for communication, exchange of information and easy business transactions. The processors are also keen to participate to increase flow of milk supply. Voluntarism is increasing from all groups of stakeholders as the system is taking roots in the community. 6.4 Coverage Coverage is an important factor to create significant impact in the market. Both project stakeholders and non-project holders have been operating in the same market. An approximate extent of coverage of the major stakeholders of one upazila viz. Birampur is shown in Table 5. Table 5: Extent of coverage of major stakeholders of milk market in Birampur Stakeholders Number Within

Project Total Number % Covered

Subsistence Milk Farmers (Both urban and rural)

421 5244 8.03

Commercial Milk Farmers - 36 0.00 Peravets 12 30 40.00 Goyalas (Milk Collectors) 7 110 6.36 Milk Processors 18 109 16.51 Total 458 5529 8.28 Estimates showed that only about less than 10% of the major stakeholders were covered by the project activities. Working with small number of stakeholders can not influence the market in favor of the poor and marginalized producers as large number of non-project stakeholders produce below standard products and offer low prices. This creates confusion among the buyers which goes against the interest of poor and marginalized producers. The extent of coverage of the stakeholders needs to be carefully planned so that project beneficiaries can exert enough influences to bring the market forces in favor of them. 6.5 Time Dimension Time dimension is very important to create business environment and institution building. These two elements are in fact key factors to the success of the project. The entrepreneurs hesitate to make investments whether it is micro, small or large unless significant benefits are visible. Marginal entrepreneurs are more skeptical due to increased vulnerability to risk of failure. The development practitioners must be passionate enough to see that entrepreneurs are convinced about benefits and make investment decisions voluntarily. Similarly, institution building is also a time consuming process. Unless benefits unfold active participation is staggered. Besides, dedicated leadership is also rare and needs time to discover and nurture. It takes lime to stimulate the leadership and gain commitment for conducting institution for the benefits of the poor. It requires about 3-5 year blossoming such a system. Time period of the project (1-2 years) is too small to achieve a breakthrough.


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6.6 Necessity of Backup Support At certain stage necessity of back up support for both new and old members of the system becomes imperative. Old members increased their desire for higher knowledge as well as linkage with financial institutions to expand and improve their herds. It requires back up support for more formal training and negotiation with financers including development of business plans for which the entrepreneurs have not yet been prepared. Those who are voluntarily forming groups and participating in the group marketing also need back up technological and quality control supports without which they will soon be frustrated. The budgetary structure of the project should be flexible enough to meet such emerging needs.


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VII. GUIDELINES FOR DEVELOPMENT PRACTITIONERS

It is not unlikely that some development parishioners may come across this case and would like to replicate in similar situation in order to adopt the PMSD approach for a commodity based poverty alleviation program. The Practical Action Bangladesh and the PNGO may like to train their new staff to work in such future programs or project. In order to facilitate their efforts the steps of designing and implementing such system is briefly narrated in this section of the case report as guidelines. Step 1: Make a sector study. Based on the study select the commodity in which small and

marginal farmers are mostly engaged or provide the best opportunity to engage for higher income and better living

Step 2: Conduct a workshop to identify the stakeholders who add value to the product or play key roles in production, processing and marketing of the product including inputs and services provided by private and public sectors

Step 3: Identify the stakeholders groups of the commodity market Step 4: Conduct a Participatory Market Chain Assessment (PMCA) by a group representing all

stakeholders in order to identify scopes, problems and constraints faced by different stakeholder groups

Step 5: Organize a value chain tour for the commodity producers to enlarge understanding of the market and identify the problems, constraints and opportunities

Step 6: Based on the PMCA findings design the package of interventions to be implemented through different stakeholders

Step 7: Organize the stakeholders as groups in a way that the groups have leaders, meet periodically, keeps record of the proceedings and implement the decisions

Step 8: Establish collection centers in which all transactions take place. Traders as well as input and service providers meet the producers in the centers for supplying products, training, discussion, etc

Step 9: Organize the producers at community level as cooperatives or association to own the system and organize the activities.

Step 10: Organize stakeholders’ platform at the community level with representatives of different stakeholder groups and formalize it as a legal entity of the industry at the community level.

Step 11: Explore alternative markets for the product so that if any surplus is produced can be sold outside the community.

Step 12: Establish a watchdog to oversee the activities at different levels of operations through a self monitoring and recording and communication system preferably through community based stakeholders’ platform.


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VIII. CONTACT PERSONS AND INSTITUTIONS

8.1 Development Council ( DC) Islam Para Birampur Dinajpur Telephone: 05322-55356 Mobile : 01712-545124 E-mail : [email protected] Fax : N/A Name of the Executive Director: Md. Hafizur Rahaman . Contact no. 01712-545124

8.2 Self Initiative for Development Programmed (SIDP)

Village : Khanpur P.O : Khanpur UP –Zila : Sadar District : Dinajpur Contact No: 01716-139941 E-mail : N/A Fax : N/A Name of the Executive Director: Md.Afser ali. Contact no. 01716-139941

8.3 Practical Action a) Headquarters Mr. Abdur Rob Team Leader Markets and Livelihood Programs Practical Action House # 32, Road # 13A Dhanmandi, Dhaka 1209, Bangladesh Tel: +880 2 8111834, 9123671, 8111855, Ext. 117 Fax: +880 28113134, Mobile 0181925 3236 E-mail: rob@practical action.og.bd Web: www.practicalaction.org b) Dinajpur office House -141 , Road -5/A, Block-1 Backside of Diabetic Hospital (New town -1) Housing Estate Dinajpur Phone: 0531-51172, Mobile No : 01711-440021 E-mail : [email protected] Fax : N/A


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Contact Person: Mirza Kholil Zibran Senior regional officer Dinajpur Mobile No: 01711-440021 E-mail : [email protected]


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IX. GLIMSES IN PICTURES

Pic.1: A Local breed of cow

Pic. 2: Grass market

Pic. 3: Feed preparation Pic 4: UMS preparation


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Pic. 5: Vaccination by Peravets Pic. 6: Learning session by Peravet

Pic. 7: Milking the cow Pic. 8: Testing the milk


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Pic.9: Goyala carrying milk Pic.10: Milk market

Pic. 12: Relation Matrix review

Pic. 11: A 1000 Liter ceiling plant


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Appendix A PRACTICAL ACTION

Informal Milk Market Development Assessment FGD DSTA FORMAT

1. Upazila: 1. Date: 2. Time: 3. Venue: 5. Identify the group. Put tick mark. Stakeholders Groups Tick Stakeholders Groups Tick

Milk Farmers Veterinary Doctors

Fodder Producers Milk Collectors

Feed Shops Milk Processors

Equipment Suppliers Financers (PNGOs/Banks)

Peravet Milk Consumers

6. Value Addition: In last one month what are the cash inputs, material and labor you bought/hired and used for production and marketing of inputs, services and outputs? Items Quantity

(kg) Price (Tk/kg.)

Amount (Tk.)

Milk/inputs Prod/Prov (Lit.)

Price (Tk/kg)

Total Value (Tk)

7. Price Structure: What are the buying (cost of Production) and selling price of inputs, services and products Name of inputs/products/service Cost of production/buying prices (Tk.) Selling prices (Tk.)

8. Contact: How frequently do you have contact with following groups? Put code No. 7=daily; 6=weekly; 5=fortnightly; 4=every month; 3=quarterly; 2=bi-yearly, once in a year, 0=none

Is there any contract? Is there any contract? Groups Code Yes No Verb/

Written.

Groups Code. Yes No Verb/

Written Milk Farmers Veterinary Doctors



Equipt Suppliers Financers



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11. Trust and Confidence: How strongly do you trust the following group of stakeholders? -3=strongly distrust, -2=distrust, -1=to some extent distrust, 0=Neither trust nor distrust, +1=to some extent trust, +2=trust, +3 strongly trust Stakeholders Groups Code Stakeholders Groups Code




Equipment Suppliers Financers (PNGOs/Banks)


12. What is the principal reason for trust or distrusts? Stakeholders Groups

Reason Stakeholders Groups Reasons




Equipment Suppliers

Financers


13. Information Exchange: How frequently do you exchange of Information with the following stakeholders groups? Put code No. 7=daily; 6=weekly; 5=fortnightly; 4=every month; 3=quarterly; 2=bi-yearly, once in a year, 0=none Stakeholders Groups Co

de Type of information Stakeholders Groups Co

de Type of information




Equipment Suppliers

Financers


14. Standard of Performance: Is there any performance standards among the actors of your group so that milk quality is improved and market is expanded? Yes______ No______ If yes what are the standards?

Tasks What are the standards Tasks What are the standard

15. Technologies Introduced: What are the technologies introduced in order to improve the quality and productivity of your activities

Tasks Technologies introduced Tasks Technologies introduced


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16. Institutional Platform: Is your group act as an organization? Yes____ No_____ If Yes, is it registered? Yes____ No_____; If yes, under which act/law: ________________ If registered, when (date): Do you have any Leader? Yes____ No_____ If yes, what is his/her name: How frequently your group meets? 1. Daily, 2. Weekly, 3. Monthly, 4.Six monthly, 5. Yearly, 6. Any time called. Who calls your meeting? Do you keep attendance of the meeting? Yes_______No________ Do you record proceedings and decisions? Yes______ No. _________ Who maintains the records? If the group has no organization, do you feel to become a registered organization? Yess_____No_____ What benefit you expect? 17. Role Performance: What role do each group perform to develop and maintain the milk industries in your region/area Stakeholders Groups Principal Role Stakeholders Groups Principal Role




Equipment Suppliers Financers


18. What are the services have you been receiving from the PA and PNGOs Practical Action PNGOs

19. Did you share or pay cost of any services? Yes______ No ________ If yes, which services and how much proportion of costs a) Practical Action: b) PNGOs 20. In which aspect the emerging milk market is similar or different to the traditional milk market of the region?

Similarities Dissimilarities


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21. What problems does your group face now that requires redress? a. e. b f. c. g. d. h. 22. What do you aspect PA and PNGOs should do for the development of milk market in your area Practical Action PNGOs 23. Please guess what percentage of families rear cows in rural and urban areas?

Rural Urban Percent of families Av. No.

of Cows Av. Milk per Cow

Percent of families Av. No. of Cows

Av. Milk per Cow

24. How many commercial dairy farm exists in your Upazila a. No. of farms: b. No. of cows per farm: c. Milk per cow (lit): 25. Any other comment/suggestion/recommendations, etc a b c d e 25. Evaluator’s observation for the group:


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Attendance and Particulars of milk producers in the FGDs

No. Name of Rearer

Name of village No of Cattle Heads

No of Cows

No. of Milking Cows

Per Day Milk (Lr)

Sales (Lr)

Home Con. (Lr)


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Attendance and Particulars in Fodder Cultivators

Fodder Cultivation

No Name with village Area (Ac)

Production (Mond)

Home consumption (Mond)

Sales (Mond)

Price Tk/Mond


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Attendance and Particulars of Peravets in the FGDs

No. Name of Peravet with Address

Do possess Medicine shops (Yes/No)

No of Cows Treated per Day

Income from Treatment per month (Tk.)

Sales of Medicine per month (Tk.)

Income from Medicine (% of Sale)

Signature


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Signature


36








Signature


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Attendance and Particulars of Milk Processors in the FGDs

Milk purchased per day (Lit)

No.

Name of Milk Processors with Address

Groups Non-groups

Name of the products

Sales of per Day (Tk.)

Income from Sale (%)

Signature


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Attendance and Particulars of Feed Shop Keepers in the FGDs

No.

Name of Feed Shop Keepers with Address

Major Inputs dealt with

Sales per Month (Tk.)

Sales increased (%)

Operational Cost per month (Tk.)

Income from Sale (% )

Signature


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Attendance and Particulars of Consumers in the FGDs

Average per day milk consumed per family( own/purchased) in liter

No.

Name of Consumers with Address 2003 2004 2005 2006 2007

Signature

Documents

Cold Milk Hot Profits, Draft Report 3