Objectives: Introduce CARE, CARE-Bangladesh and Strengthening the Dairy Value Chain (SDVC) project; Framework for private sector engagement; Examples of our work with the private sector

1. Strengthening the Dairy Value
Chain in Bangladesh through
Private Sector Partnerships
Muhammad Siddiquee
Project Director
Strengthening the Dairy Value Chain
CARE Bangladesh
Schulich School of Business, October 20, 2011

2. Presentation Objectives
Objectives
•Introduce CARE, CARE-Bangladesh and Strengthening the
Dairy Value Chain (SDVC) project
•Framework for private sector engagement
•Examples of our work with the private sector
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3. CARE – An Overview
 Global emergency response and
development organization
CARE offices around the
 Created in 1946, 60 plus years
world
 Network of 12 national members
 Operates in 70 countries
 1000 projects, 14,500 staff
 over 95% nationals.
 50 million plus beneficiaries each year
 We seek transformational changes
 Partnerships with multiple stakeholders
 90% resources support program
activities.
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4. CARE – In Bangladesh
BASIC FACTS
PROGRAMS
- In Bangladesh for 55 years !!! Health / Education / Food Security / Economic Dev / WATSAN
- Working in Poorest districts
- One third of geography
- Close to a Million BoP poor clients
PROGRAMMING STRENGTHS: We
- Analyze underlying causes of poverty
- Are guided by “theories of change’
- Foster a learning atmosphere
- Encourage bottom-up Innovation
- Over 50 PARTNERSHIPS
Private Civil Society Government Academics
Organizations
Sector
They build in trust with CARE in Bangladesh:
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5. Our Impact Groups
Marginalized women & girls
Extreme poor people in rural areas
Marginalized groups in urban areas
Climate change and disaster vulnerable poor
How do we do it? CARE’s Mission
CARE Bangladesh amplifies the voices of the poor and marginalized in
ways that influence public opinion, development practice, and policy at all
levels.
This happens as knowledge drawn from our grassroots and global experience is
channeled through purposeful relationships with civil society, government, and the
private sector. 5

6. Strengthening the Dairy Value Chain
• Bill and Melinda Gates Foundation
funded dairy value chain project
(2007-2012) to double-dairy related
incomes of 35,000 small farmers in
northwest Bangladesh
• Working with the private sector at all
levels of the value chain towards
sustainable solutions
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7. SDVC Project Region
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8. 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
– Own 0.75 acres of land
– $25 monthly income
– 1-3 cows
• 79% of SDVC farmers are
women
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9. Bangladesh Dairy Value Chain
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10. Challenges in the Dairy Sector
• Bangladeshi Dairy Sector/Livestock
– 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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11. Theory of Value Chain Enhancement
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12. Target and impact group
Current (% of women)
Total milk producing (participating)
36,397 (83%)
Household
Total milk producer group 1182
Farmer Leader 3425 (71%)
Milk Collector 308 (9%)
Livestock Health Worker (LHW) 201 (23%)
Information Service Center (ISC) 48
Community Agri-Shop (CAS) 102
HHs' Avg. production increase 75%
HHs' milk consumption increase 40%
# of groups engaged in savings 538
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13. Private Sector Engagement Framework
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14. Private Sector Engagement
Challenges
•Unwillingness of private sector to reach the bottom of the pyramid
•Limited access to inputs and markets
•Lack of transparency and trust
CDVF BRAC Microfranchised
•Intermediary •BRAC Dairy Village Input Shops
organization •AI •One-stop service centers
•Aim to provide •Transaction – Feed
community veterinary Transparency – AI
service – Animal health services
– Medicines
•Links to markets
– Information 14

15. CDVF Gateway Agency
Opportunity
– Community Dairy Veterinary Foundation
– Successful gateway agency brokering between
informal and formal sector
– Currently
operating with
donor funding
– Potential to scale
through a
financially self-
funding model 15

16. CDVF Gateway Agency
Response
– Built relationship with CDVF founder
– Replicated model amongst poorest farmers
– Co-funded a business plan and strategic plan to
transition from donor organization to financially
self-reliant social enterprise
Challenge
– Couldn’t make the case to the private sector
– Ultimately walked away
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17. 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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18. BRAC Dairy and VC Transparency
Response and Results
– Worked with BRAC to understand
their constraints
– Risk for BRAC to acknowledge
problem (a destructive innovation)
– Trust building and patience
– Piloted fat testing meters, expanding
– Potential to transform purchasing
practices across the sector,
benefiting smallholders, quality
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19. Micro-franchised Diary Input Shops
Challenges
– Lack of access to inputs
• concentrate feed
• animal health services
• medicines
• artificial insemination
– Gap in the value chain
Business relationship
versus partnership
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20. Micro-franchised Dairy Input Shops
Response and Results
– Worked to ensure input shop
owners are trusted
– Community members (farmer
leaders, paravets)
– Provided business and
technical training
– Moving toward a micro-
franchise model
– Farmers willing to travel
further to get inputs from
someone they trust 20

21. Micro-franchised Dairy Input Shops
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22. Thank You
Muhammad Siddiquee
Project Director
Strengthening the Dairy Value Chain
CARE Bangladesh
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