1. Knowledge, Tools and Lessons for Informing the Design and Implementation of Food Security Strategies in Asia November 14 16, 2011 Kathmandu, Nepal IFPRI IIDS

2. DAIRY ENHANCEMENT IN EASTERN PROVINCE (DEEP) PRESENTED BY U.L. JAUFER, COUNTRY MANAGER/COP DEEP PROJECT USAID/LAND OLAKES INTERNATIONAL DEVELOPMENT 3. CONNECTING MICRO LEVEL DAIRY FARMERS WITH NATIONAL LEVEL DAIRY VALUE CHAIN EXPERIENCE FROM PUBLIC PRIVATE PARTNERSHIP ALLIANCE 4. Funded by USAID under the Public and Private Alliance (PPA) Total est. budget US $3.75 million Leverage Private Sector Partner funding (CIC Agribusinesses) is US $5.7 million Implementing Partner Land OLakes Partners 5. Post war scenario: soon after the 30 year ethnic war Limited data about war- affected east Majority of eastern province farmers displaced multiple times, low morale Absence of competitive milk collection companies Milco was the sole milk collector Project Design: Context 6. -Understanding Donor Policy -LOLS Relationship with USAID: Built on Trust, Accountability and Transparency -PPA Objectives: To improve social and economic conditions in a developing country to find sustainable solutions to serious development issues that require collaboration with private sector Durable/Sustainable Solutions Partnership/Alliance Building Implementation 7. To connect the Eastern Province dairy farmers to the national value chain and increase the dairy-related income of 4,000 dairy farmers Component One Increase the Quantity and Quality of Raw Milk through Targeted Training and TA Component Two Establish Milk Collection Centers (MCC) and Forge Linkages with Milk Producer Groups (MPGs) Component Three Establish Modern Dairy Processing Facility in a PEER Target Province Overall Objective 8. Component 1 Establish 40 MPGs Provide training and technical assistance Strengthening MPG access to locally available inputs and services Component 3 Establish a Modern Dairy Processing Plant in the target province Component 2 Building and equipping 4 Milk Collection Centers (MCC) Hiring and training MCC staff members Negotiation of supply contracts with CIC MCC CIC MPG 9. Mobilization and awareness raising Capacity building of farmers through training/technical assistance Institution building/strengthening Partnership building Leveraging Land OLakes and VEGA Expertise Strategy 10. Project Locations 11. Farmers had low morale, poor self-esteem and poor organization post-conflict Subsistence and traditional dairy farming Lack of technical know-how Less access to inputs and services Low Farm Gate Price middlemen advance payment system, poor quality of milk, milk collection & marketing network Working with Small Farmers: Constraints 12. 4,125 dairy farmers reached through grants, training, AI & pasture development Established/revived 56 Milk Producer Groups (MPGs) Added 3,279 cows to the cattle population: cow purchased 2,151 AI 1,128 Four Milk Chilling Centers are collecting around 180,000 liters of milk per month and earn around LKR 9 Million. Results 13. Created 70 permanent/casual employment opportunities CIC has established a Mini Milk Processing Plant with a capacity to produce 30,000 containers of yogurt per day. Results, continued 14. BLS Price of Milk has increased from LKR29/L to LKR39/L due to DEEP intervention in 2009 and 2010 Ensured the new price increase of LKR 50/- by GoSL with support from CIC Positive changes in attitudes and behavior within the farming communities Increased milk quantity and quality 70% price increase and increased farmer income Impact 15. Increased female participation 50:50 Inclusive Development: Respect for women, ethnic harmony: Sinhalese, Tamils and Muslims Demonstration effect on non-beneficiary farmers: production in Batticaloa increased 100% in 2011, compared to 2010 Eastern Province ranked as the second largest milk supplier to the national value chain Impact, continued 16. Social Mobilization based on participatory approach Interactive training Institution building Establishing linkages Collaboration between partners Network building Tools 17. Farmer attitudes could be changed by training and working with them in the field. Network building & expansion of vet services are useful tools in increasing the milk production and collection Presence of competitors results in more benefits for farmers. Grass root level institution building is a strong tool in attracting small and large quantities of milk Lessons Learned 18. Linkages between farmers and input service providers is a strong tool in introducing latest and appropriate technologies When farmers show improvement, service providers are voluntarily attracted to them It is possible for large private sector companies to work with small scale farmers through local level farmers organizations Lessons Learned, continued 19. Presence of competitors results in more benefits to farmers Traditional farm management practices could be changed through training and exposure visits Inclusive Development helps to increase female participation and harmony among different ethnic groups Small financial support will attract more investment from farmers Lessons Learned, Continued 20. THANK YOU!!