SlideShare ist ein Scribd-Unternehmen logo
1 von 78
Downloaden Sie, um offline zu lesen
FINAL REPORT




          CONSULTANCY SERVICES FOR BUSINESS
          DEVELOPMENT SERVICES (BDS) MARKET
                DIAGNOSTIC IN RWANDA


                                 CONDUCTED BY:




                SUBMITTED TO:
EAST AFRICA DAIRY DEVELOPMENT (EADD) PROJECT


                                      JANUARY 2009
REPORT FOR BDS DIAGNOSTIC IN RWANDA                  1
FIT RESOURCES JANUARY 2009
REPORT FOR BDS DIAGNOSTIC IN RWANDA   2
FIT RESOURCES JANUARY 2009
CONTENTS


Background and introduction                                                                             3
Methodology and activities                                                                              3
        Preplanning                                                                                     4
        Training                                                                                        5
        Field work                                                                                      5
                  Sampling                                                                              6
                  Key challenges of fieldwork                                                           7
        Data processing                                                                                 7
        Presentations                                                                                   8
        Key conclusions of the methodology                                                              8
Findings of fieldwork and data analysis                                                                 9
CONSUMER SURVEY by location                                                                             9
        Locations covered and key informants interviewed                                                9
        Targeted SME consumers interviewed                                                              9
        Market profiles                                                                                 11
        Key demand side constraints and opportunities                                                   25
        Business development services that address those constraints and opportunities                  26
        Specific policy constraints that are affecting MSE product markets                              28
SUPPLIER DIAGNOSTIC by location                                                                         29
        Existing providers/ services and their locations                                                29
        A workable data base of the BDS actors                                                          30
        BDS suppliers interviewed                                                                       30
        Types of services and price of services, how providers cover costs, profitability, existing     31
        contractual arrangements and promotional/marketing strategies
        Capacity gaps of interviewed suppliers                                                          34
        Priority supply side constraints, market failures, and market opportunities                     34
        Comparison of interviewed suppliers                                                             36
        The enabling environment for BDS                                                                37
Conclusions                                                                                             38
        Characteristics of the market for BDS in each specific region in relation to existing supply,   38
        demand and transactions
        An insight into the potential of each target market location                                    39
        Level of market distortion                                                                      40
        Comparative information on the in-country sites and the 3 markets                               41
Recommendations                                                                                         42
        Other current or proposed dairy sector interventions                                            42
        Sustainable solutions to address priority market constraints and market failures                42
        Illustrative market based interventions                                                         51
        Approaches and methodologies                                                                    55
        Strategies which ensure effectiveness and efficiency                                            56
        Strategies which ensure sustainability                                                          59
        Suggested BDS providers/delivery channels to target for future interventions                    62
        Selecting appropriate BDS providers                                                             63
        BDS performance measurements at the BDS market level                                            63
Annexes                                                                                                 67
        Database of SME actors including persons interviewed
        Database of BDS suppliers including persons interviewed
        Database of targeted suppliers
        Itinerary
        FIT/RI scope of work
        Final instruments
        Data collected
        BDS training report
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                          3
FIT RESOURCES JANUARY 2009
Researcher training report




Background and Introduction


In a bid to improve life through poverty reduction, a consortium of organisations
comprising of Heifer International as lead, TechnoServe Inc, ILRI, ABS-TCM and ICRAF
launched a 4 year program dubbed EADD (East Africa Dairy Development) funded by Bill
and Melinda Gates Foundation. The programme aims to move smallholder farmers out of
poverty by delivering farmer-focused, value-chain activities that are implemented
simultaneously to stimulate dairy farm production, dairy-sector services, business
development and dairy market pull. The vision of success for the EADD is that the lives of
179,000 families—or approximately one million people—are transformed by doubling
household dairy income by 2018 through integrated interventions in dairy production,
market-access and knowledge application.

The consortium deemed it important to carry out a market assessment to understand the
characteristics of the BDS markets in relation to existing supply, demand and transactions
in the dairy sectors in some key sites in Kenya, Uganda and Rwanda. The information
would:
    • Provide an insight into the potential of each market
    • Clarify opportunities for interventions
    • Define broad strategic approaches

FIT Resources Kenya (FIT) in collaboration with Research International East Africa Ltd
(RIEAL) were contracted to coordinate the market diagnostic in key locations in Kenya.
The findings and recommendations of this consultancy will contribute to the market
focused, sub sector approach of the EADD aimed at improving the functioning of BDS
markets. The final scope of work is attached to this report (Annexes/Final Revised
SOW).

FIT Resources act as the lead agency and contract holder, to provide strategic leadership
in devising and conducting the business development service consumer research and
supplier diagnostic. Research International conduct the field work as a sub contractor, to
collect primary and secondary qualitative and quantitative information, analyse, process
and present the data.



Methodology and activities


To achieve the above results the following activities were agreed on:
   • Preplanning (planning meetings, research boundaries on the basis of project
     resources, existing sub sector information, market assessment goal/
     objectives/research hypothesis, developing and testing the tools, screening
     interviewers, target locations in each country, preliminary key informants, other
     current or proposed interventions)
   • Training (training of EADD staff, field research teams and BDS training workshop)
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                      4
FIT RESOURCES JANUARY 2009
• Field work (target groups, sample size, areas covered, team structure, consumer
     survey and supplier diagnostic)
   • Data processing (developing the data base of BDS actors, profiling the markets,
     choose priority constraints, identifying and scoping out sustainable solutions,
     defining ‘illustrative’ market based interventions and strategies, suggest appropriate
     BDS providers, establishing comparative information, identifying BDS performance
     measurements)
   • Presentations (stakeholder workshops and final presentation)

Preplanning

Relevant background information was sourced via a series of planning meeting with
Technoserve and EADD consortium members. Meeting presentations and minutes are
attached to this report (Annexes/Process meetings). These meetings also included
setting the research boundaries on the basis of project resources, preliminary selection of
target locations and the agreed definition of ‘small holder farmer’.

The market assessment goal, objectives and research hypothesis were agreed as follows:

The market assessment goal is:
To understand the characteristics of the BDS markets in relation to existing supply,
demand and transactions in key sites in Rwanda.

The market assessment objectives are:
   • To provide an insight into the potential of each market
   • To clarify opportunities for interventions
   • To define broad strategic approaches

The research hypothesis is:
If current BDS market dynamics are better understood then strategic approaches and
interventions can be devised to develop BDS markets in a sustainable manner and benefit
SMEs.

It was agreed that the FIT/RI team would build capacity of the project staff to undertake
future market assessments during the life of the project. Due to budget constraints a
targeted number of sites were discussed that affords the best opportunities to kick-off the
project and generate some ‘quick wins’. A training itinerary was also agreed upon to
capacitate EADD project staff in BDS and research skills. FIT Resources provided lead for
the overall assignment and liaison with Technoserve and the country offices on all the pre
planning activities. FIT Resources coordinated the field preparation with Research
International and Technoserve including: tool development and testing, researcher
selection and training and itinerary development. Different tools were developed to cover
the demand (consumer) side and supply (supplier) side of the market. The final
instruments and itinerary are attached to this report (Annexes/Final Instruments). The
following activities were undertaken prior to the commencement of fieldwork: screening of
team members, preparation and translation of questionnaires and preparation of reporting
tools and manuals. Research International personnel met field staff/counterparts and
finalised the selection of target locations and identification of key informants in each
country. Research International finalised the training of field researchers including EADD
project staff and preparations for field research.
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                       5
FIT RESOURCES JANUARY 2009
No secondary information was used as the project is building on a baseline survey and
existing value chain assessments in each country. The comprehensive examination of
targeted BDS markets and value chains will assist EADD in designing systemic solutions
to key market problems. The two subsystems—BDS markets and value chains—are
complementary components of the larger market system into which MSEs must integrate.




REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                  6
FIT RESOURCES JANUARY 2009
Training

   1. BDS training workshop - FIT Resources personnel implemented an indepth EADD
      staff stakeholder training in Uganda (to include Uganda and Rwanda stakeholders).
      This 2 day formal training in diagnostic skills covered the principles and practices of
      BDS, BDS market development, BDS market assessment and BDS market
      development programme design and performance measurement. The aim of this
      training was to capacitate project staff and provide stakeholders with a contextual
      framework for the research. The workshop presentations, training materials and
      training reports are attached (Annexes/BDS Training).

   2. Training of field research teams - teams including Technoserve and consortium
      member staff, were subject to an in country briefing session prior to fieldwork
      commencement. The training sessions covered methodology of the assessment
      stages, sampling, tools and stimulus methods to use with market players and how
      to complete reporting formats. The aim of this training was to capacitate project
      staff to engage in further market diagnostics beyond the life of this collaboration.
      The workshop presentation and training reports are attached (Annexes/Research
      Training).

Field work

In order to complete this assignment within the defined period, a large teams of
interviewers, team-leaders and supervisors were assigned. Team members were recruited
from the RIEAL regional offices, according to specifications based on experience and
qualifications. The RIEAL Principle Researcher and a field coordinator coordinated the
research at all stages, and focused on ensuring that outputs were planned in advance so
time-schedules were met. They worked alongside the RIEAL existing field management
structure that forms the line management for the field departments. Daily reporting of
results and activities from each team was channeled back through this central
management team.

Research International led and implemented the field research in collaboration with EADD
project staff. Consultations and market observation were undertaken during the fieldwork
which included visiting identified target locations plus identifying and holding interviews
with key informants and targeted dairy sector stakeholders relevant to the selected sites.

Consumer survey - Consumer research was implemented with a selection of consumers
from the core market itself with a focus on farmers and chilling plant stakeholders.
However the definition regarding ‘small holder farmer’ was reviewed and altered during a
process meeting and the ceiling lifted of the number of cows as many farmers in Uganda
and Rwanda are large compared to Kenya’s extensive small holder population.
Constraints and opportunities were then identified in the areas of market access, input
supply, technology/product development, management and organisation, policy, finance
and infrastructure. The size and strength of the market in each specific area of the country
for those services was estimated broadly plus key sub sector constraints, market failures
and market opportunities defined from the demand side. Key business development
services were identified that address the specific constraints and opportunities.

REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                         7
FIT RESOURCES JANUARY 2009
Supplier diagnostic - Based on the identified priority services, relevant suppliers were
identified and a supplier survey implemented with service providers from the support
markets to determine who is supplying BDS and how. Constraints, market failures and
opportunities were then determined from the supply side. A comparison of suppliers was
also undertaken and the level of market distortion anticipated. Stakeholders from the
business environment such as local authorities, regulators/policy makers were contacted
as required to provide an overview of the business environment.

The BDS Market Assessment Survey took place in Rwanda from 14th - 25th November,
2008. The area of coverage of the survey research was Nyagatare and Gatsibo Districts
covering the following sectors and sampling points:

                     Nyagatare        Nyagatare         Gatsibo
                     BMN              Mbare
                     • Bushoga        • Karangazi       • Kiramuruzi
                     • Tabagwe

New sites not included will be covered by Technoserve staff beyond the life of this
consultancy.

Sampling
    The sample included 316 interviews spread across the 3 sites.
    302 farmers were interviewed.
    As per the briefing instructions, the teams covered a 20KM radius from the location
    of the chilling plant. Depending on the number of locations located within the 20 KM
    radius, an equal number of sampling points were picked in each location to ensure
    spread of interviews.
    For each location, the team leader picked the starting point randomly, and using the
    random route method, farmers who fitted the set criteria were interviewed: Selection
    criteria included:
         • Dairy farmer
         • Have mature milking cows
    Interviews were conducted on farmers who possessed up to 20 cows either being
    milked or dry currently. There was a shift from the earlier limit of 5 cows due to the
    widespread ownership of traditional cows in the region. Again it was also realized
    that even when farmers owned vast herds here, their milk production remained low
    as they keep indigenous cows that produce an average of between 1 and 4 liters
    each per day.
    The team traveled as one and on reaching the research site (village) members were
    dispatched in different directions. The left hand rule applied in selecting the dairy
    farmer to interview starting from a given landmark. This meant that once an
    interview took place, the interviewer moved 3 households keeping on the left hand
    side then interviewed the 4th household.
    However, the above rule was only applied where the population was dense and
    where farms were relatively big (over 10 acres), the skipping was limited to 1
    household. At the household, the interviewers first spoke to the adult member of the
    family, mainly the husband or wife though at some instances, some other family
    members who were directly responsible for dairy farming gave information.


REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                      8
FIT RESOURCES JANUARY 2009
In Rwanda, farmers are allocated grazing land by Government in accordance with
      the size of cattle herd one has. A centralized area is then set aside where people
      are allowed to build their homes and the farms are located at a considerable
      distance away from their homes. This state of affairs meant that our interviewers in
      most cases could not physically see the cows to ascertain some claims by farmers.
      As for suppliers (14 were interviewed), the team picked supplier names from the
      farmers, other suppliers and also those they came across in the trading centres.
      From the list, a score was given to each and every supplier based on set criteria
      (capacity to deliver services, closeness to SMEs e.g. in terms of understanding their
      culture and geography, commercial focus e.g. level of profitability, focus on services,
      SMEs or BDS, organizational independence- especially from donor funds, legally
      registered and willingness/interest/ability to partner). This set of requirements not
      withstanding, and because of their scarcity, all suppliers listed were sought for
      interview, although a few could not be found.

Key challenges of the fieldwork
  • Late start in Rwanda due to technical hitches and strict protocols e.g. Government
     requirement of research license
  • Accessibility of some sectors
          o Transport – lack of efficient public transport. Tabagwe Sector is
             approximately 20 kilometers away from Nyagatare Township and the only
             available mode of public transport was motorbikes.
          o Rains – the timing of the study coincided with rainy season and this affected
             the movement.
  • Special events – the arrest of a senior Rwanda Government official in Germany and
      the visit to Gatsibo district by Kenya’s President Kibaki coincided and interrupted
      fieldwork as farmers were called on to participate in the demonstrations and rallies
      that were organized by the Government countrywide.
  • Few/ uncooperative BDS suppliers. Some of the BDS suppliers were either
      uncooperative or hard to find. There were very few BDS suppliers of dairy products
      and services and as such farmers have limited choices.
  • Research fatigue – a good number of farmers complained of having participated in
      other recent agricultural and other types of surveys whose results and benefits they
      had no idea of.
  • Questionnaire duration. Some respondents complained it was taking too long to go
      through a questionnaire. This was particularly so during the first few days when
      most of the interviewers took over one and a half hours (90 minutes).

Data processing

Research International processed all the data collected on an ongoing basis. Research
International personnel have developed a database of actors (BDS providers in each of
the areas under study are listed, categorized by service provision and their location
recorded). A further database defines specific provider gaps and capacities including a
score against agreed selection criteria for determining target partner providers. A
database of the small and micro enterprises (SMEs) interviewed has also been
developed. The full data set is attached to this report (Annexes/Databases).

To understand the markets, RI examined three key issues - demand, supply and
transactions (the interaction between demand and supply) during the market assessment.
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                         9
FIT RESOURCES JANUARY 2009
The outcome of analyzing this information forms a picture of each BDS market showing
how it works, where the opportunities for growth are, and where significant problems lie.
Data analysis was undertaken to profile the markets, establish comparative information on
the in-country sites and the 3 markets and draw conclusions from the data.

A round table meeting was held in early December 08 with stakeholders to overview the
methodology and process of data processing and analysis and reach consensus on the
priority constraints/opportunities and identify possible solutions. The meeting presentation
is attached to this report (Annexes/ Process meetings). Sustainable solutions that
address priority supply side and demand side constraints were discussed. Illustrative
market based interventions were also developed with a focus on potentially
sustainable/profitable services that are replicable in the private sector. Strategies which
ensure effectiveness, efficiency and sustainability were also discussed alongside
suggested BDS performance measurements. The data processing plan was then
circulated for stakeholder feedback during the analysis process and the data plan is
attached to this report (Annexes/Process meetings). Comparative information on the in-
country sites and 3 BDS markets was also produced.

Presentations

FIT Resources and Research International personnel collaboratively implemented a
presentation and action planning at a stakeholder workshops in Rwanda with staff,
consortium members and key informants on 9th January 09. This workshop included a
short training presentation on the basic principles and practices of BDS and the Market
Development Paradigm. All the research findings were presented and proposed illustrative
solutions and performance measurements discussed. Feedback was recorded and an
action plan developed.

FIT Resources then prepared this final draft report and will present the final report to
Technoserve with support from Research International in Nairobi, Kenya by FIT
Resources and Research International on January 30th 2009.

Key conclusions of the methodology

   •   Outsourcing the MA to a research company ensured a more effective and efficient
       MA process.
   •   A combination of outsourcing and internal capacity building ensured the best
       possible results. The likelihood of useful research results was ensured as EADD
       stayed close to the MA process.
   •   The ability of EADD staff to remain consistent to the process was questionable.
       Staff members were not always available for the trainings and meetings as required
       plus EADD field staff were not available to partner on the field work in some
       locations drawing into question the long term ability of field staff to implement
       further diagnostics in new locations.
   •   Determining a clear hypotheses and outlined MA goal and objectives ensured a
       more effective delivery of analysed data from Research International.
   •   The MA focused on a holistic picture of the market and incorporated both sides of
       the market equation—demand and supply.



REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                       10
FIT RESOURCES JANUARY 2009
Findings of fieldwork and data analysis


CONSUMER SURVEY by location

Locations covered and key informants interviewed

Nyagatare BMN                 Nyagatare Mbare               Gatsibo
Bushoga                       Karangazi                     Kiramuruzi
Tabagwe

Targeted SME consumers interviewed

The consumer survey in Rwanda covered 302 respondents. The respondents qualified to
be interviewed if they were small scale milk producers and specifically for Rwanda if they
had less than 20 traditional cows. For every site covered, a minimum of 100 farmers were
interviewed.

Of the 302 respondents interviewed, 80 percent (243) were males while 20 percent (59)
were females. A majority of the male respondents (26%) were aged between 36 – 45
years while for the females the majorities (32%) were aged 46 – 55 years. Only few
respondents (4%) were aged between 18 – 25 years and above 64 years.

 Distribution of Respondents by age           % of total sample interviewed
 BASE=302
 Males                                        80
 Females                                      20

Most of the farmers practiced mixed farming –crop growing and cattle keeping. Expectedly
and as per the recruitment procedure all respondents were dairy farmers. This was
followed by food crop farming at 81%. Cash crop farming in the region is insignificant as
only 3% of the respondents reported growing cash crop.

As per the recruitment procedure all the respondents interviewed were the key decision
makers on dairy farming activities. Currently, a majority (88%) of the farmers milk between
1 – 5 cows despite most of them having more than 5 cows. In terms of herds kept, Majority
of the farmers in Nyagatare claimed to own more than 5 cows while in Gatsibo the
proportion of those who have more than five was small.

Farmers in the three sites were found to be keeping mixed breeds. However, a majority of
them (84%) keep indigenous breeds. About half of the farmers interviewed also keep
cross breeds 46% while those who keep pure breeds are less than 10%.

The findings also indicated that Nyagatare-BMN had more pure breeds (14%) compared
to Gatsibo and Nyagatare-Mbare where farmers claimed to own 8% and 4% of pure
breeds.



REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                      11
FIT RESOURCES JANUARY 2009
Nyagatare         Nyagatare
                            TOTAL           Mbare              BMN         Gatsibo
          BASE:            302        101                  100            101
                                                       %
          Pure breed       9          4                    14             8
          Cross breed      46         47                   54             39
          Indigenous       84         88                   88             76

On average, farmers with pure breeds reported to produce 17 liters of milk per day while
cross breeds produced 8.5 litres per day. Expectedly, the productivity for traditional breeds
was reported to be the lowest. In terms of regions, Nyagatare BMN and Mbare farmers
produce more milk per day with an average of about 10 litres per day compared to
Gatsibo where daily production average was reported to be around 6.6 liters.

Expectedly, the amount of milk sold per day on average within the three sites is less than
the amount produced as some milk is spared for domestic use. The table below indicated
the average amount of milk sold by farmers:

       District                           Average liters   Average       Difference
                                          produced per     liters sold   (unsold milk
                                          day per farm     per day       - liters)
       Nyagatare-Mbare                    9.5              6.7           2.8
       Gatsibo                            6.6              5.5           1.1
       Nyagatare-BMN                      10.1             7.3           2.8

Across the three sites covered in the research, most of the farms were between 1 – 5
acres in size.

Market profiles

Awareness and affordability of services/ inputs
When respondents were asked the dairy inputs/ services they are aware of, AI, mineral
supplements, vet treatment services and veterinary vaccination were mentioned by more
than 90% of the farmers. Other inputs that were mentioned by more than 60% of the
respondents include insecticide and tick sprays and supplementary feeds. However,
despite AI ranking as the service majority of the farmers were aware of (98%), complete
familiarity of its benefit was rated below average. Across all services/ inputs in totality,
farmers were least aware of chaff cutters and hay balers. Expectedly, almost all farmers
were not familiar with the benefit of the two farm equipments.

In terms of affordability, of the 7 top most inputs/ services that farmer were aware of,
supplementary feeds, veterinary vaccination and AI were rated as highly unaffordable to
farmers. The table below summarises some key inputs/ services that farmers are aware of
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                        12
FIT RESOURCES JANUARY 2009
in regard to familiarity with the benefits, availability, affordability and most important
overall.




REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                     13
FIT RESOURCES JANUARY 2009
Not affordable
                                                       Completely familiar                                                          even after          Most
                                                       with benefit of                                         Very strongly        saving up           overa
                               Aware                                                Easily available
                                                                                                               needed
Artificial Insemination (AI)
                                                  98                 46                              70                   84                34


     Mineral supplements                                                                                  92
                                                 96                            84                                         87             16


  Vet Treatment Services                         93                       63                         71                   82                29



   Veterinary vaccination                    91                            80                             84               87                      54


      Insecticide and Tick
                                                                               84                     79                       89           26
                    sprays                  84


    Supplementary feeds                63                       24                         30                            74                        56



Disinfectants for Cleaning            58                              59                        47                         84                 31



   Information/training on       47                             23                       21                               80                  37
        animal husbandry




      On enquiring from the farmers the services/ inputs they have purchased or received in the
      past for their dairy animals, supplementary feeds and disinfectants were ranked lowest
      among the 7 top services farmers were aware of as shown in the figure below.

      However, farmers expressed concerns on the adequacy of most inputs/ services that they
      have received in the past 12 months.

      In terms of services/ inputs that were being used nowadays, only three performed
      averagely and above. These were mineral supplements 77%, insecticide and tick sprays
      66% and veterinary treatment services 52%.




      REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                                              14
      FIT RESOURCES JANUARY 2009
Inadequate
                                                                                                                             amount
                                                                      Purchased in
                            Aware               Ever purchased        P12M                          Used nowadays


  Artificial Insemination                  98               77                  62                       40                        52
                     (AI)


  Mineral supplements                      96                    94                      92                             77    30


Vet Treatment Services                    93                80                      74                        52                  45


                                          91                     91                  82                      48              23
 Veterinary vaccination


                                          84                84                       82                            66             37
   Insecticide and Tick
                 sprays

                                     63              34                   24                       12                                   71
  Supplementary feeds

                                    58                 46                      45                       33                        39
       Disinfectants for
              Cleaning

                                47               7                    4                        1                                       67
 Information/training on
      animal husbandry


 Services/inputs ever purchased or received
 Generally, the 3 markets do not indicate any significant differentials in the demand for
 services and inputs purchased or received. However, some slight differences were noted
 in Nyagatare (BMN & Mbare) where almost all farmers claimed to have vaccinated their
 animals and in Nyagatare Mbare where AI services were claimed to have been used by
 over 80% of the farmers. This may mean that the drive to transform herds from indigenous
 to cross breeds is at a higher level in Nyagatare which conforms to the breeds kept.

         Services/Inputs ever
         purchased or received                                     Nyagatare                                       Nyagatare
                                                          TOTAL     Mbare    Gatsibo                                 BMN
         BASE: Total Sample                                   302        101     101                                     100
                                                                                %
         Artificial Insemination (AI)                           77        83      72                                         77
         Veterinary treatment
         services                                                     80                      82         82                  76
         Veterinary vaccination                                       91                      88         87                  97
         Supplementary feeds                                          34                      33         38                  31
         Mineral supplements                                          94                      96         99                  87
         Disinfectants - for cleaning
         and sterilizing                                              46                      51         44                  43
         Insecticides & tick sprays                                   84                      76         89                  87

 Although some farmers observed that through savings, they could purchase some of the
 services or inputs, milk coolers, supplementary feeds and veterinary vaccination were
 perceived to be out of reach by a majority. Those who said services/ inputs were not
 REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                                               15
 FIT RESOURCES JANUARY 2009
affordable were asked why they thought so. The following table provides a breakdown of
         some of the reasons advanced (sample: all who said not affordable):

               Service/ product                           Total     So expensive          May be able to
                                                         sample      could never           use if saves
                                                                    consider using              up
                                                                                      %
               Artificial Insemination (AI)                79            34                    66
               Veterinary treatment services              104            29                    71
               Veterinary vaccination                      57            54                    46
               Supplementary feeds                        140            56                    44
               Mineral supplements                         90            16                    84
               Disinfectants - for cleaning and           85             31                    69
               sterilizing
               Insecticides & tick sprays                 126            26                    74
               Seeds to grow fodder                        82            46                    54
               Milk testing kits                           90            44                    56
               Hay bailers                                 87            47                    53
               Milk coolers                               140            68                    32
               Metal milk churns                          115            37                    63
               Information/training on animal             94             39                    61
               husbandry

         For the services/ inputs that farmers have received in the past, a majority of the farmers
         reported having paid something the last time to access certain services/ products. The
         fees paid ranged depending on the type of service, distance from where the service
         provider was coming from, among other things.

         The table below provides an average cost of different products and services offered to the
         farmers:

                                                                           Disinfectants
               Artificial   Veterinary                                     - for         Insecticides
               Insemination treatment Veterinary Supplementary Mineral     cleaning and & tick
               (AI)         services   vaccination feeds       supplements sterilizing   sprays
BASE: All
who ever
received....            234         242           274             102          284              139           254
                                                             %
 Yes                     93           98           95             86            98               96            97
 No                       7            2            5             14             2                4             3
Amount
paid (mean
in Fr)                 4100        8900           1900          19100         10800           14400         11300




         REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                           16
         FIT RESOURCES JANUARY 2009
Level of satisfaction with service/inputs received

       The following table shows the level of satisfaction with services/inputs received:




                                                                                                               - for cleaning
                                                                                  Supplementa




                                                                                                               Disinfectants
                                  Insemination




                                                                                                 supplements




                                                                                                               & tick sprays
                                                                                                                Insecticides
        Level of satisfaction




                                                                   vaccination
                                                  Veterinary




                                                                    Veterinary
        with service received




                                                 treatment




                                                                                                               sterilizing
                                   Artificial




                                                 services




                                                                                  ry feeds

                                                                                                  Mineral
        last time




                                                                                                               and
                                  (AI)
        BASE: All ever
        purchased/received
        service            234                   242           274               102            284            139       254
        Completely satisfied      42             74            94                54             87             77        85
        Partly satisfied          34             21            6                 34             12             22        13
        Not at all satisfied      24             4             -                 12             1              1         2


       A majority of the farmers who accessed the seven most popular services/ inputs reported
       being satisfied with the quality and nature of services provided. For those reporting
       complete satisfaction, the lowest reported complete satisfaction was recorded among
       farmers who received Artificial Insemination (42%) while the highest was registered
       among farmers receiving veterinary vaccination at 94%. Other levels of satisfaction stood
       at 74% for veterinary treatment services, 54% for supplementary feeds, 87% mineral
       supplements, 85% for insecticides and tick sprays, and 77% for disinfectants for cleaning
       and sterilizing.
       While there is room for improvement among those reporting complete satisfaction,
       particularly among those reporting lower than 90%, there is more to be done among those
       reporting partial satisfaction and those claiming not satisfied at all.
       Areas where milk could be sold
       Respondents mentioned a number of possible areas where milk could be sold as
       presented below:

                                                                                                               Area
                                                                                      Nyagatare                              Nyagatare
Areas could sell milk                                              TOTAL               Mbare                   Gatsibo         BMN
BASE: Total Sample                                                  302                 101                     101            100
                                                                                                           %
Bulking/ cooling center                                                75                   88                      60              75
Hawker/ brokers                                                        57                   70                      29              72
Farmers cooperative /group /association                                47                   49                      38              54
Direct to homes e.g. Neighbours or family
members                                                                47                   49                      49              45
Direct to institutions e.g. school, hospital, food
kiosk                                                                  25                   25                      31              19
Milk bar                                                               26                   32                      31              16

       There were more farmers reporting milk bulking and collection centers as places where
       they could sell their milk. This was reported by 75% of the farmers. It was followed by
       REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                                     17
       FIT RESOURCES JANUARY 2009
hawkers/ brokers at 57%, and neighbors/ relatives and cooperatives/farmer groups tying
at 47%, milk bars 26%, institutions 25%.
However on being asked where they are selling milk currently a majority of them reported
selling to brokers/ hawkers (52%) followed by neighbours/ family members, milk bulking/
cooling centers or to farmers associations. Interestingly, hawkers are not a popular buyer
in Gatsibo district, while selling to neighbours and family members seem to be the most
preferred here.

                                                          Nyagatare         Nyagatare
   Types of customers                             TOTAL    Mbare    Gatsibo   BMN

  BASE: Total Sample                                302          101            101      100
                                                                       %
  Hawker                                             52           62             26       67
  Cooling plant                                      47           51             47       42
  Direct to homes e.g. Neighbours or family
  members                                            47           49             49       45
  Farmers cooperative/group/association              47           49             38       54
  Milk bar                                           26           32             31       16
  Direct to institutions e.g. school, hospital,
  food kiosk                                         25           25             31       19
  Bulking center                                     11           12              8       12
  Processor                                          10           11              4       15
  Broker at farm gate                                 5            8              3        5

However, in terms of preference among those who sell to more than 1 channel, ‘direct to
homes’ and ‘farmers co-operatives’ emerged as the preferred buyers.

Adequacy of information received on where could sell milk
Asked to explain what they felt about the information they received regarding where they
could sell their milk, a majority of the farmers indicated they received just enough
information (72%). Only a paltry 2% reported receiving what they considered as a lot of
information. However, farmers in Nyagatare BMN seem to be divided almost equally
among those claiming to receive just enough information (52%) and those saying they
received very little information (46%).

                                           Nyagatare          Nyagatare
     Info received      TOTAL               Mbare               BMN               Gatsibo
     BASE                         302              101                100               101
                                                          %
     Very little                      26             23                    46           11
     Just enough                      72             75                    52           87
     A lot                             2              2                     2            2

Asked to indicate the other services they enjoyed from their main buyers besides buying
their milk, the majority of farmers (57%) reported receiving no other services at all. The
table below shows some of the services received by farmers from some milk buyers:



REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                            18
FIT RESOURCES JANUARY 2009
Nyagatare                    Nyagatare
                                           TOTAL                       Gatsibo
  Services received                                     Mbare                         BMN
  BASE: Total Sample                        302          101            101           100
                                                                   %
  Advance on milk payments                  20            22             19            20
  Farm inputs - seeds, fertilizer           5             2              6             8
  Animal feeds/ supplements                 7             6              6             8
  Milk collection from the farm or near
                                             6            5              4             10
  farm
  AI services                                7            4              4             12
  Animal health services- treatment,
                                            19            21             16            20
  vaccination and drugs
  Training on animal husbandry              12             4             18            14
  Information on market prices              8             11             5             9
  Delivery/ transport of farm inputs
  and animal feeds                           3             3              3             4
  None                                      57            53             63            55

Of the services received, some farmers claimed to have paid for them while some were
either not sure or did not pay anything. The main mode of payments for these services
was the check-off system with only 28% claiming to pay in cash.

           Services paid for                                                  (%)
           Advance on milk payments                                           30
           Farm inputs - seeds, fertilizer                                    31
           Animal feeds/ supplements                                          50
           Milk collection from the farm or near farm                         26
           AI services                                                        50
           Animal health services- treatment, vaccination and
           drugs                                                              65
           Training on animal husbandry                                       14
           Information on market prices                                        8
           Delivery/ transport of farm inputs and animal feeds                10

Extra services required from milk buyers
When asked if they would require extra services from the milk buyers, majority of the
farmers responded positively. Below is the list of services they would expect to get from
the milk buyers:

                                                        Nyagatare         Nyagatare
                                             TOTAL                Gatsibo
   Services/ inputs required                             Mbare              BMN
   BASE: Total Sample                            302       101           101          100
                                                                   %
   Advance on milk payments                      37           30          37           46
   Farm inputs - seeds, fertilizer               18           14          22           18
   Animal feeds/ supplements                     30           23          36           33
   Milk collection from the farm or near
   farm                                          25           23          25           27
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                             19
FIT RESOURCES JANUARY 2009
AI services                                    25           23             23              30
   Animal health services- treatment,
   vaccination / drugs                            29           28             35              26
   Training on animal husbandry                   30           25             31              35
   Information on market prices                   28           24             27              33
   Delivery/ transport of farm inputs and
   animal feeds                                   18           16             19              18
   None                                           33           31             41              29

In regard to payments for milk, 2/3 of the farmers indicated they are paid in cash after a
specified period as shown in the table below. However, in Gatsibo, a significant number of
farmers confirmed to receive money through their bank accounts. Two modes of payments
also emerged as the most preferred means of receiving payments by farmers:

                                                       Nyagatare Nyagatare
     Mode of payment for sold milk          TOTAL       Mbare      BMN                  Gatsibo

    BASE: Total Sample                        302              101            100              101
                                                                     %
    Paid cash on delivery                        8               4                 9               11
    Paid in cash after a specified
    period                                       62             73             64                  50
    Cash deposited to a financial
    institution                                  14              9             14                  18
    Barter - exchange milk for other
    services                                     0 -                 -                             1

Farmers who deliver milk to the formal market were asked how they deliver milk to the
market. ¾ of the respondents claimed to deliver milk on their own to the market. However,
in terms of the preferred mode, over ¾ of the farmers would prefer their milk to be picked
up at farm gate. This pattern was similar in all the 3 markets:

                                                       Nyagatare                       Nyagatare
     Current milk delivery system           TOTAL       Mbare         Gatsibo            BMN
     Base                                      181            60            58                63
                                                                     %
    The buyer provides for transport
    from the farm or near farm                   25             33            12                   29
    Use your own means to transport
    (bike, walk) etc                             75             67            88                   71

Overall, among the farmers whose milk is collected by the buyer, slightly less than half felt
it was either reliable or very reliable. However, in Gatsibo (though the base was small) the
majority of the farmers rated the transport to be unreliable.

                                                       Nyagatare Nyagatare
     Buyer reliability                   TOTAL          Mbare      BMN                 Gatsibo
     BASE: All provided transport
     by the buyer                           45            20             18               7
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                     20
FIT RESOURCES JANUARY 2009
%
      [wt=5] Very reliable            24   15       44    -
      [wt=4] Reliable                 20   15       28   14
      [wt=3] average                  16   15       11   29
      [wt=2] Poor unreliable          13   20        6   14
      [wt=1] Very unreliable          27   35       11   43




REPORT FOR BDS DIAGNOSTIC IN RWANDA                           21
FIT RESOURCES JANUARY 2009
Frequency of milk collection
Milk is collected generally once a day across the three regions:


                                                       Nyagatare Nyagatare
    Milk collection                        TOTAL        Mbare      BMN           Gatsibo
    BASE: All provided transport by the
    buyer                                      45           20           18           7
                                                                   %
    Once in a day                              93           95           89       100
    Two times a day                             4            -           11        -
    Three times                                 2            5            -        -

Asked to express their feeling on whether they thought this was adequate or inadequate, a
majority (62%) felt it was inadequate. However, in Nyagatare BMN, 56% of the
respondents felt it was adequate.

     Adequacy of Milk                               Nyagatare    Nyagatare
     collection                       TOTAL          Mbare         BMN         Gatsibo
     BASE: All provided transport
     by the buyer                         45           20           18            7
                                                                   %
      Adequate                            38           30           56           14
      Inadequate                          62           70           44           86

Awareness of cooling plant
Almost all respondents were aware of a cooling plant near them. Some of the cooling
plants mentioned include:
   • Mudakos
   • Nyagatare cooling plant
   • Mbare
   • Terimbere mworozi (Karangazi)
   • Rwabiharamba dairy
   • Musenyi
   • Bashumbambeza
   • Karama
   • Mubyatarama
   • Kirebe
   • Cyangarama
   • Kamate

A majority of the farmers (90%) also claimed that the cooling plants were owned by
farmers’ cooperative groups in the region. Farmers stated they would expect to get the
following services from the cooling plants:

                                                     Nyagatare                 Nyagatare
    Cooling plant services                     Total  Mbare            Gatsibo   BMN
    BASE: Total Sample                           302      101              101      100
    Credit facility                               74        69              72        81
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                        22
FIT RESOURCES JANUARY 2009
Farm inputs - seeds, fertilizer             46           42        48           48
    Animal feeds                                62           51        67           67
    Milk collection from the farm or near
    farm                                        54           55        44           62
    AI services                                 57           51        57           63
    Animal health services - treatment
    and prevention                              74           70        78           72
    Vaccination and drugs                       71           64        69           80
    Training on animal husbandry                58           58        50           66
    Information on market prices                74           69        72           81

Credit facility, animal health services – treatment and prevention and information on
market prices emerged as the key services farmers need, although most of the other
services and inputs are also needed at varying levels which reflects a very high demand.

Asked if they would be happy with check-off as mode of payment for their milk, nearly all
farmers (93%) said that they would be very happy.

       Reaction to check-off                     Nyagatare         Nyagatare
       payment system                   TOTAL     Mbare    Gatsibo   BMN
       BASE: Total Sample                  302        101      101      100
                                                         %
        Happy                                 93        92      92        95
        Not sure                               4         2       7         3
        Unhappy                                3         6       1         2

Skills/ information needed by farmers
Majority of the farmers (83%) indicated they do not have the skills needed for good dairy
farming across the 3 regions. When asked to mention the areas they needed more
information on, the following emerged:

                                                        Nyagatare      Nyagatare
     Skills/info required                      TOTAL     Mbare Gatsibo   BMN
     BASE: Total Sample                         302       101     101    100
     Disease id, treatment & prevention          72        76     77      63
     Improvement of milk production              66        71     61      66
     Drug administration                         61        62      60     59
     New animal feeds                            60        64     55      59
     Milk prices                                 55        53     55      57
     Cattle breeding                             54        57     41      64
     Dairy farm record keeping                   30        34     25      31
     Record keeping                              25        21      26     28
     Public health issues and requirements       22        19     27      21
     Awareness of government policies            19        17     20      21
     Buyers                                      13        11     14      13

Whether ever received any useful information
Farmers were asked whether they had ever received any useful information about dairy
farming. About 69% reported not to have received any. The same trend was recorded
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                         23
FIT RESOURCES JANUARY 2009
from the three regions. Those reporting having received useful information were then
asked to indicate what services they had received. The advice/ information were mainly
stated to be from government extension workers and to some extent, the NGO’s. The
following Table shows the breakdown:

                                                                Nyagatare          Nyagatare
    Info received                                         TOTAL  Mbare     Gatsibo   BMN
    BASE: All ever received information                      93        24       36        33
                                                                          %
    Improvement of milk production                           54        50       56        55
    Awareness of government policies                         33        25       28        45
    Cattle breeding                                          32        33       25        39
    New animal feeds                                         24        25       25        21
    Disease identification, treatment and
    prevention                                               19              17       25       15
    Drug administration                                      18               8       28       15
    Dairy farm record keeping                                10              13        8        9
    Record keeping                                            2 -                      3        3
    Public health issues and requirements                     1 -                      3 -
    Milk prices                                               1 -                 -                3

Whether plans to change anything
Asked whether they planned to change anything about their dairy farming in the next 1
year, nearly all farmers indicated they have some plans in mind. However, 85% of the
farmers highlighted breed improvement as the key change they would like to implement.
The figure below shows areas farmers mentioned they would like or plan to improve on in
the next 1 year.

Planned changes for farm and dairy improvement:
       Improve the quality of my milk / improve my milk
                       handling skills                        11%

                        Improve feed storage methods           12%

                                 Buy farm equipments            15%

     Grouping with other farmers to get cheaper inputs          15%

   Improve the management of my dairy as a business
                                                                     23%
   Group together with other farmers / join association
                                                                     23%
            / join coop / join producer group

                  Improve feed by buying supplements                 23%

           Improve my knowledge about dairy farming                   28%

      Improve the veterinary treatment / drugs used on
                                                                       30%
                           cattle

                 Enlarge size of herd / Buy more cattle                30%

      Improve feed through growing better / more feed                      31%


REPORT FOR BDS DIAGNOSTIC IN RWANDA to zero grazing
                     Change feeding                                        32%                         24
FIT RESOURCES JANUARY 2009
                                      Improve building                     33%

   Improve breeding / breed of cattle through breeding
                                                                                             85%
                   methods / use AI
REPORT FOR BDS DIAGNOSTIC IN RWANDA   25
FIT RESOURCES JANUARY 2009
To achieve the above desired changes farmers mentioned the following measures as
  drivers they are definitely likely to adopt:

     •   Grouping together with other farmers or joining co-operative to benefit from
         economies of scale - e.g. cheap farm inputs
     •   Use of AI services
     •   Growing of more and quality feed
     •   Enlarging size of herd
     •   Adopting zero grazing methods

  Keeping records
  Overall, only a small number of farmers reported keeping records which were mainly on
  milk production and sales.
                                                           Nyagatare         Nyagatare
Record keeping                                       TOTAL   Mbare   Gatsibo   BMN
BASE: All who keep records                              37         7      16        14
Milk sales                                              95      100       94        93
Milk production                                         81        57      94        79
Record on animal births                                 59        57      56        64
AI services records                                     38        29      38        43
Treatment and vaccination records                       35        29      38        36
Feeds record                                            11 -              25 -



                                                                     Milk sales

                                                                     Milk production

                                                                     Record on animal births

                                                                     AI services records

                                                                     Treatment and vaccination
                                                                    records
                                                                     Feeds record




  Profitability
  Despite not having any farm records, a majority of the farmers claimed to know the
  profitability of their dairy farm. About two thirds of the farmers indicated knowing the level
  of profitability of their dairy farms. Males (68%) were more likely to know the profitability of
  their dairy farming business than their female counterparts (56%). Farmers in Gatsibo
  70%, followed by those in Nyagatare Mbare (69%) seem more knowledgeable about the
  profitability of their farms than their counterparts in Nyagatare BMN (57%). Given that
  Gatsibo has more of zero grazing practices than the other two markets, it may be easier to
  monitor levels of expenditure viz avis incomes and thus keep a tab on profitability.
  REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                            26
  FIT RESOURCES JANUARY 2009
Nyagatare BMN, which has bigger herds of the indigenous cattle, may still have more
 farmers who keep cattle for traditional values rather than as business.

                                                     Nyagatare               Nyagatare
     Awareness on farm profitability       TOTAL      Mbare       Gatsibo      BMN
     BASE: Total Sample                      302          101         101         100
     Yes                                      66            69          70          57
     No                                       34            31          30          43

 Technology (mobile phones)
 Penetration of mobile phone within the three areas is high as attested by the table below.
 Generally, about 82% of the farmers reported owning/ having access to a mobile phone.
 This was almost uniformly distributed across all segments.

                                                  Nyagatare          Nyagatare
         Mobile phone access              TOTAL    Mbare     Gatsibo   BMN
         BASE: Total Sample                 302        101      101       100
                                                            %
         Yes                                   82        80       84        82
         No                                    18        20       16        18

 Asked which services they would like to access via the mobile phone sms service, cow
 disease alerts, milk prices, and market for breeds, availability of new products, and
 training/ field days/ dairy farming workshops emerged as the five leading pieces of
 information they would require.

                                                    Nyagatare         Nyagatare
 Info required by phone                  TOTAL       Mbare    Gatsibo   BMN
BASE: All with/ have access to a
mobile phone                                  248          81        85           82
Cow disease alerts                             75          73        73           78
Milk prices                                    72          70        64           83
Market for breeds                              71          69        69           74
Availability of new products and
services                                       62          63        64           60
Trainings/ field days/ dairy farming
workshops                                      61          58        64           61
Availability of milk payments                  50          47        44           60
New markets                                    50          48        39           65
Sale of cows                                   50          57        41           52
Quantity of milk supplied                      48          51        45           49
New market opportunities                       48          44        40           60
Access to loans                                38          32        41           39

 Farmers indicated high willingness to pay fees ranging from Fr 1000- 2100 to be able to
 access these services. See the figure below:



 REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                       27
 FIT RESOURCES JANUARY 2009
Info would be ready
                                                                                        to pay for


                                                                                        Info would like to access
                                                                                        via mobile phone

Milk rejected at processor level to inform farmer        33
                                                            37
                                Access to loans           35
                                                             38
                      New market opportunities                    41
                                                                            48
                      Quantity of milk supplied               40
                                                                            48
                                   Sale of cows                        44
                                                                             50
                                  New markets                          45
                                                                             50
                  Availability of milk payments                   42
                                                                             50
  Trainings/field days/dairy farming workshops                                         57
                                                                                            61
       Availability of new products and services                                  54
                                                                                            62
                              Market for breeds                                                  65
                                                                                                        71
                                     Milk prices                                                  67
                                                                                                        72
                            Cow disease alerts                                                     68
                                                                                                 75




 Capital
 Almost all farmers indicated that they require capital to develop their dairy farming
 business. Most of the farmers (61%) say they would seek credit from banks. See table
 below:

                                                Nyagatare         Nyagatare
         Credit options                   TOTAL   Mbare   Gatsibo   Bmn
         BASE: All need lump sum/ capital   278        90      99        89
         Banks                               61        61      64        58
         Micro finance institutions          13        12      12        16
         Cooperative SACCO                    8         6       8        11
         Cooling plant                        6         7       7         4
         No source                            4         4       4         4
         NGOs                                 3         4       4         1
         Family/ friends                      3         4       1         2
         Suppliers                            1         1 -               1
         Government                           0 -         -               1

 Awareness of farmer lobby organization
 Only a few farmers were aware of an organisation that looks after their needs apart from
 Gatsibo where 45% claimed to be aware:

 REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                          28
 FIT RESOURCES JANUARY 2009
Awareness of                            Nyagatare           Nyagatare
        organization                  TOTAL      Mbare      Gatsibo   Bmn
        BASE: Total Sample              302            101     101       100
                                                          %
         Yes                               38           30       45        39
         No                                62           70       55        61

In regard to membership to a farmer’s co-operative majority of the farmers belongs to
none. However, in Nyagatare BMN slightly over half claimed to be members of a
cooperative.

       Whether member of a                          Nyagatare         Nyagatare
       Cooperative                         TOTAL     Mbare    Gatsibo   Bmn
       BASE: Total Sample                    302         101     101       100
       Yes                                    45           34      49        53
       No                                     55           66      51        47

Challenges faced by farmers
Low and fluctuating milk prices coupled with delayed payments, inadequate and low
quality foliage for feeding cattle – e.g. grass and Napier grass, irregularity and
unaffordability of AI services and unaffordable/ unreliable animal treatment services were
some of the key challenges farmers highlighted as major constraints to their dairy farming.
Low milk prices combined with fluctuating milk prices and delayed milk payments
accounted for the highest single challenge at 67%.

In terms of gender, there were no significant variations although the findings seem to
indicate that male farmers were significantly (74%) more likely to complain about low /
fluctuating milk prices/ delayed payments compared to their female counterparts (37%),
while female farmers were significantly (82%) more inclined to complain about inadequate/
low quality animal foliage than their male colleagues (58%). The same trend was noticed
for irregular/ unaffordable AI services.

Age wise, there were no significant differentials across except that farmers aged less than
35 years were significantly less likely to complaint about the adequacy/ quality of foliage
than their counterparts in higher age groups.

As per the markets, Gatsibo records the lowest complaint about low milk prices (51%) as
compared to the 2 Nyagatare Sectors – BMN 82%, and Mbare 68%. Perhaps this can be
explained by the fact that Gatsibo reports the lowest milk output, (and thus higher prices)
and less dependence on milk brokers unlike the other two. However, Gatsibo reports the
highest complaint (72%) regarding adequacy/ quality of foliage available in the region –
reflecting its bigger dependency on zero grazing for its dairy farming. BMN records the
lowest at 55% mirroring its larger grazing fields.

Other challenges mentioned are as per the table below:

                                  Gender           Age                    Region
Main



REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                      29
FIT RESOURCES JANUARY 2009
challenges/
                                           18- 36-
constraints          TOTAL                               56+ Nyagatare         Nyagatare
                               Male Female 35 55                       Gatsibo
facing farmers                                               Mbare             BMN
BASE: Total
Sample                   302    243      59   76   143   83        101     101          100
Low/fluctuating
milk prices/
delayed
payments                  67      74     37   71   60    74         68      51          82
Inadequate/ low
quality foliage -
e.g. grass, napier
grass etc                 63      58     82   38   68    70         62      72          55
Irregular/
unaffordable AI
services                  55      58     41   58   47    66         61      45          59
Unreliable/
unaffordable
animal health
services                  46      46     46   46   44    53         38      45          56
Unreliable
source/
unaffordable
supplementary
feeds                     43      44     37   46   37    48         45      33          52
Inaccessible loan
facilities (high
interest etc)             37      38     32   41   35    31         30      42          40
Poor climatic
conditions                32      34     24   33   37    27         38      26          33
Lack of various
dairy
management
skills                    19      20     16   9    20    27         19      13          26
Disease
outbreaks                 13      14      8   13   15    12         12      10          18
Insecurity                10      10     10   3    13    12          5      23           3
Exploitation by
middle men                 8       9     3    10   6     11         11       1          12
Unavailability of
quality seed for
growing feed on
farm                       7       7     7    7    6      8          9       5           6
Unavailability of
milk cooling
facility                   5       5     5    6    4      8          6       5           4
High transport
cost                       4       5     3    2    5      7          4       5           4
Inaccessible
roads                      2       2 -        1    2      3          2 -                 3
 REPORT FOR BDS DIAGNOSTIC IN RWANDA                                               30
 FIT RESOURCES JANUARY 2009
Key demand side constraints and opportunities

The following are the constraints and potential opportunities.

Constraint                                  Opportunity
Inadequate foliage and grass to feed        • Provide seed to grow fodder to selected
animals due to poor climatic conditions       farmers who have larger farms. They can
– draught.                                    thus sell to others at competitive prices
                                            • Introduce supplementary feeds
Irregular and unaffordable AI services      • More AI providers needed at main trading
                                              centres at village level
                                            • Establish scheduled visits by AI providers to
                                              all villages
                                            • Train farmers on basic procedures of
                                              conducting AI
Inaccessible/ unaffordable loans to         • Provide easily accessible/ affordable
promote dairy farming.                        financial products that are developed/
                                              tailored to meet farmer needs
Low and fluctuating milk prices             • Establish more strategic milk collection/
hindering farmers from planning their         cooling centres
future                                      • Improve on roads to facilitate easy/ cheaper
                                              milk transport
                                            • Establish a local dairy processing plant
Poor/ unreliable animal treatment and       • Additional veterinary doctors needed at
vaccination services                          village level
                                            • Further training for skill upgrading for vet
                                              technicians
Unaffordable supplementary feeds            • More suppliers needed
beyond the reach of many small scale        • Use of locally available raw materials need to
farmers                                       be explored to make them affordable
Unreliable source of supplementary          • More farmers should be trained on how to
feeds                                         prepare them
Disease outbreaks                           • Modern lab testing facility established in the
                                              region
                                            • Vaccination of cattle strengthened

Business development services that address those constraints and opportunities

The following table outlines the BDS that address these constraints and opportunities:

Constraint                    Opportunity                  BDS that address those
                                                           constraints & opportunities
Inadequate foliage and        •   Provide seed to grow     INPUT SUPPLY such as creating
grass to feed animals due         fodder                   links between farmers and
to poor climatic conditions   •   Supplementary feeds      suppliers and enabling suppliers to
– draught.                                                 reach more farmers and develop
                                                           their capacity to offer better quality
                                                           inputs.
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                          31
FIT RESOURCES JANUARY 2009
Irregular and unaffordable    •   More AI providers            INPUT SUPPLY such as
AI services                       needed at main trading       facilitating links between farmers
                                  centres at cell level        and AI suppliers and enabling
                              •   Scheduled visits by AI       suppliers to reach more farmers
                                  providers to all villages    and develop their capacity to offer
                                                               better, less expensive inputs.
Inaccessible/                 •   Easily accessible/           FINANCE such as helping farmers
unaffordable loans to             affordable financial         identify and access funds through
promote dairy farming.            products developed           formal and alternative channels
                                  tailored to meet farmer      that include supplier or buyer
                                  needs by banks and           credits, factoring companies,
                                  MFIs                         equity financing, venture capital,
                              •   Major milk buyers e.g.       credit unions and commercial
                                  dairy cooperatives           banks (letters of credit, etc.)
                                  consider introducing
                                  simple financial
                                  products that are
                                  affordable by the
                                  farmers
Low and fluctuating milk      •   Establish more milk          MARKET ACCESS such as
prices hindering farmers          collection /cooling          identifying and establishing new
from planning their future        centres                      markets for products plus the
                              •   Improve on road              creation of links between all the
                                  networks                     actors and helping buyers to
                              •   Establish locally a dairy    expand their outreach to, and
                                  processing plant to take     purchases from, farmers. This may
                                  advantage of the             also include helping farmers to
                                  excess milk.                 produce to buyer specifications.

                                                               INFRASTRUCTURE such as
                                                               establishing sustainable
                                                               infrastructures that enable farmers
                                                               to increase sales and income e.g.
                                                               refrigeration, processing facilities,
                                                               transport systems, communication
                                                               centers, and improved roads.
Poor /unreliable animal       •   Additional                   INPUT SUPPLY as above
treatment and vaccination         veterinary/vaccination
services                          doctors needed at            TRAINING & TECHNICAL
                                  village level                ASSISTANCE such as workshops
                              •   Further training for skill   to develop the capacity of farmers
                                  upgrading                    and suppliers to better plan and
                              •   Scheduled visits to          manage their operations and
                                  villages to attend to        improve their technical expertise.
                                  farmer needs                 This may also include fostering
                                                               links between service providers
                                                               and farmers.
Unaffordable             •        More suppliers needed        INPUT SUPPLY as above. This
supplementary feeds      •        Use of locally available     may also include encouraging
beyond the reach of many          raw materials need to        more potential suppliers to meet
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                             32
FIT RESOURCES JANUARY 2009
small scale farmers               be explored to make       the market demand.
Unreliable source of              them affordable           TECHNOLOGY & PRODUCT
supplementary feeds.                                        DEVELOPMENT such as
                                                            identifying new technologies.
Disease outbreaks             •   Modern lab testing        INFRASTRUCTURE as above
                                  facility established in
                                  region
                              •   Vaccination of cattle
                                  strengthened
Poor transport/ road          •   Improved road             INFRASTRUCTURE as above
networks that slows               networks in the deep
growth of the dairy sector        rural areas
                              •   improvement of the
                                  transport systems e.g.
                                  introduction of
                                  minibuses to compete
                                  with the motor bikes
                                  and help farmers to
                                  market their milk
                                  cheaply

Specific policy constraints that are affecting MSE product markets

The following are some of the policy constraints that are affecting the MSE product
markets:

   1. Locating households away from dairy farm

       The Government of Rwanda has introduced a land development and resettlement
       policy in this region where farmers are settled in centralised areas while the grazing
       farms are allocated a considerable distance away. Managing the farm becomes
       tricky and there are added costs of travelling and a worker to keep watch and graze
       the animals. Milking may also not be properly done and accounted for in the
       absence of the farm owner and there could be cases of cheating about the milk
       output.

   2. Strict legal and public health regulatory requirements

       The strict enforcement of minimum regulatory standards for suppliers particularly
       milk handling/ collection, may be responsible for keeping very few suppliers
       engaged in this business. As a result, farmers cannot access certain services easily
       and affordably as the supply competition is limited.

       In order for the BDS market to be stimulated for faster growth, the strict legal/
       health requirements may need to be relaxed a bit until such a time suppliers have
       grown and the need for strict enforcement is really needed.

   3. Government continued involvement in service provision

       Government policy of providing subsidised AI and veterinary treatment and
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                         33
FIT RESOURCES JANUARY 2009
vaccinations, though positive in its intentions can only serve to establish the sector
       from infancy. However, sustained growth can only be achieved where market
       forces of supply and demand are left free to operate.

       The government should reduce its involvement to regulating and creating an
       enabling environment. Its continued presence and active participation in service
       provision only serves to discourage and choke private sector competition.

       This situation where effective competition is lacking, has led to poor services being
       dispensed judging by some of the complaints received during fieldwork. For
       instance there were reports of poor quality semen which led to farmers getting
       poorer grade calves in contrast to what was promised during insemination. The
       tragedy of this is that farmers only discover the problem after nine months when
       birth takes place. Again farmers reported waiting for days before a veterinary doctor
       arrives in their village to treat their cattle.




REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                        34
FIT RESOURCES JANUARY 2009
SUPPLIER DIAGNOSTIC by location

Existing providers/ services and their locations

The following breakdown shows how suppliers were distributed across this region. A total
of seven suppliers were identified in Nyagatare/ Tabagwe sectors. However, only six were
found/ interviewed. In Karangazi sector, six suppliers were listed but only five were found/
interviewed. In Kiramuruzi sector four suppliers were identified but only three were found
and interviewed.

A workable data base of the BDS actors

A workable data base           of     these       BDS   providers   is   attached     to   this   report
(Annexes/Databases).

BDS suppliers interviewed

List of suppliers interviewed as attached above.

Types of services and price of services, how providers cover costs, profitability,
existing contractual arrangements/relationships and promotional/marketing
strategies

Types of services
The common services/ inputs provided in this area include veterinary treatment and
vaccination services, mineral supplements, insecticide and tick sprays, and disinfectants
for cleaning and sterilizing, and supplementary feeds. Others are information/ training in
animal husbandry and artificial insemination (AI). Across the two districts, it appears that
the services provided are similar although Nyagatare District could be defined as more of
a cattle keeping district while Gatsibo would qualify more as an area of mixed farming
practices with less land for cattle rearing. Grazing fields are therefore bigger in Nyagatare
than in Gatsibo.



Services/ inputs provided         Nyagatare BMN            Nyagatare Mbare              Gatsibo
                                 (No of suppliers –        (No of suppliers         (No of suppliers
                                     BASE=6)                  BASE=5)                  BASE=3)

Vet treatment services                        6                     5                       3
Disinfectants - for cleaning                  6                     5                       3
and sterilizing
Mineral supplements                           3                     5                       3
Info/training in animal                       5                     4                       2
husbandry
Insecticides & tick sprays                    6                     2                       2
Supplementary feeds                           2                     1                       2
Milk testing kits                             2                     3                       1
Seeds to grow feed                            2                     2                       2
REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                                    35
FIT RESOURCES JANUARY 2009
Vet vaccination                         2                                        1
Milk collection/ bulking                2                   2
Milk advance payments or                2
credit services
Artificial Insemination                 2                                        2
Information on dairy                    1                   1                    1
markets
Metal milk churns                                           2                    1

Price of services and how providers cover costs/ profitability
Across the 3 sites, suppliers interviewed indicated that they do not charge their customers
for any information they dispense concerning dairy farming. They make their money and
profits by selling/ charging for the conventional products and services provided like selling
drugs, AI provision or treatment of cows. When pricing services and inputs suppliers
considered several factors to arrive at a given price, as follows:

   •   Wholesale price of input from source
   •   Transport cost/ distance covered if it is an outreach service
   •   Taxes payable on service/ input
   •   Rent
   •   Whether demand for input/ service is high or low
   •   Competition
   •   Profit margin
   •   Big suppliers like Agrotech Nyagatare who is associated with Agrotech chain of
       animal drug shops, explained that they do not determine prices, but that the prices
       are dictated from the head office in Kigali.
   •   For instance, some AI providers reported buying semen to fertilize one cow at 500
       fr from the Government agents only to sell this at 1500 fr to the dairy farmer.
       Besides, the farmer pays transport cost separately. Usually, this will be the cost of
       hiring a motor bike by the AI provider.

    One of the AI providers told of cases where they are sometimes forced to forego
  payments when they come across needy farmers who are unable to pay for services.
 Such costs are absorbed through government subsidiaries like ERAGIC – an institution
     that promotes modern dairy development through easy access to AI services.


The commonest form of payment for services/ inputs rendered was cash after service,
across all types of service providers. When the service provider is a Cooperative or an
Association of farmers, members enjoy the check-off system facility which allows them to
pay later through deductions from their weekly/ monthly payment for milk deliveries. Other
forms of payment options are delayed/ staggered payment and payment by cheque.
Staggered payment is normally allowed for instance where a cow is either dry or sick until
it heals and resumes being milked. Should it die, then the charges are written off - if it is
only one. The following table shows the common modes of payments for services and the
associated challenges.




REPORT FOR BDS DIAGNOSTIC IN RWANDA                                                        36
FIT RESOURCES JANUARY 2009
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda
Business Development Services (BDS) Market Diagnostics in Rwanda

Weitere ähnliche Inhalte

Andere mochten auch

Business development strategy
Business development strategyBusiness development strategy
Business development strategyAnil Kumar
 
Best Practices In Business Development
Best Practices In Business DevelopmentBest Practices In Business Development
Best Practices In Business DevelopmentDavid Fatlowitz
 
How to develop an effective Business Development Strategy
How to develop an effective Business Development StrategyHow to develop an effective Business Development Strategy
How to develop an effective Business Development StrategyHein Roth
 
Business Development Presentation
Business Development PresentationBusiness Development Presentation
Business Development PresentationStephen Simpson
 
Company Profile Sample
Company Profile SampleCompany Profile Sample
Company Profile SampleYagika Madan
 
Change Management PPT Slides
Change Management PPT SlidesChange Management PPT Slides
Change Management PPT SlidesYodhia Antariksa
 

Andere mochten auch (9)

Balanced Scorecard
Balanced Scorecard  Balanced Scorecard
Balanced Scorecard
 
Change Management
Change Management  Change Management
Change Management
 
Business development strategy
Business development strategyBusiness development strategy
Business development strategy
 
Best Practices In Business Development
Best Practices In Business DevelopmentBest Practices In Business Development
Best Practices In Business Development
 
How to develop an effective Business Development Strategy
How to develop an effective Business Development StrategyHow to develop an effective Business Development Strategy
How to develop an effective Business Development Strategy
 
Company Overview Presentation
Company Overview PresentationCompany Overview Presentation
Company Overview Presentation
 
Business Development Presentation
Business Development PresentationBusiness Development Presentation
Business Development Presentation
 
Company Profile Sample
Company Profile SampleCompany Profile Sample
Company Profile Sample
 
Change Management PPT Slides
Change Management PPT SlidesChange Management PPT Slides
Change Management PPT Slides
 

Ähnlich wie Business Development Services (BDS) Market Diagnostics in Rwanda

Analysis Of The Brazilian Surfactant Market In Brazil Brochure
Analysis Of The Brazilian Surfactant Market In Brazil BrochureAnalysis Of The Brazilian Surfactant Market In Brazil Brochure
Analysis Of The Brazilian Surfactant Market In Brazil Brochurealelance
 
Preview Deck | Procurement Outsourcing Annual Report 2012
Preview Deck | Procurement Outsourcing Annual Report 2012Preview Deck | Procurement Outsourcing Annual Report 2012
Preview Deck | Procurement Outsourcing Annual Report 2012Everest Group
 
A project report on customer satisfaction of two wheelers industries with spe...
A project report on customer satisfaction of two wheelers industries with spe...A project report on customer satisfaction of two wheelers industries with spe...
A project report on customer satisfaction of two wheelers industries with spe...Projects Kart
 
Shelf Life Food Additives In Mexico
Shelf Life Food Additives In MexicoShelf Life Food Additives In Mexico
Shelf Life Food Additives In Mexicoalelance
 
Product Service Value In Use (Jobs) Innovation Odi Case Studies
Product Service Value In Use (Jobs) Innovation Odi Case StudiesProduct Service Value In Use (Jobs) Innovation Odi Case Studies
Product Service Value In Use (Jobs) Innovation Odi Case StudiesChris Lawer
 
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual Report
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual ReportPreview Deck | Finance and Accounting Outsourcing (FAO) Annual Report
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual ReportEverest Group
 
Business standard
Business standardBusiness standard
Business standardpnp1
 
Business Development Services (BDS) Market Diagnostics in Uganda
Business Development Services (BDS) Market Diagnostics in UgandaBusiness Development Services (BDS) Market Diagnostics in Uganda
Business Development Services (BDS) Market Diagnostics in UgandaEast Africa Dairy Development
 
Amr Salar Proposal Final
Amr Salar Proposal FinalAmr Salar Proposal Final
Amr Salar Proposal FinalSalar Bijili
 
Planning governance assessment english
Planning governance assessment englishPlanning governance assessment english
Planning governance assessment englishOchir Consulting Ltd
 
Market Opportunity Analysis
Market Opportunity AnalysisMarket Opportunity Analysis
Market Opportunity AnalysisJohnKatsaros
 
Bpr training v 2.0 4.1.2012
Bpr training   v 2.0 4.1.2012Bpr training   v 2.0 4.1.2012
Bpr training v 2.0 4.1.2012Mohammad Saleh
 
14_GPM_RC
14_GPM_RC14_GPM_RC
14_GPM_RCnele41
 

Ähnlich wie Business Development Services (BDS) Market Diagnostics in Rwanda (20)

BDS voucher
BDS voucherBDS voucher
BDS voucher
 
Market Research
Market ResearchMarket Research
Market Research
 
Analysis Of The Brazilian Surfactant Market In Brazil Brochure
Analysis Of The Brazilian Surfactant Market In Brazil BrochureAnalysis Of The Brazilian Surfactant Market In Brazil Brochure
Analysis Of The Brazilian Surfactant Market In Brazil Brochure
 
Preview Deck | Procurement Outsourcing Annual Report 2012
Preview Deck | Procurement Outsourcing Annual Report 2012Preview Deck | Procurement Outsourcing Annual Report 2012
Preview Deck | Procurement Outsourcing Annual Report 2012
 
A project report on customer satisfaction of two wheelers industries with spe...
A project report on customer satisfaction of two wheelers industries with spe...A project report on customer satisfaction of two wheelers industries with spe...
A project report on customer satisfaction of two wheelers industries with spe...
 
Summer project
Summer projectSummer project
Summer project
 
Shelf Life Food Additives In Mexico
Shelf Life Food Additives In MexicoShelf Life Food Additives In Mexico
Shelf Life Food Additives In Mexico
 
Product Service Value In Use (Jobs) Innovation Odi Case Studies
Product Service Value In Use (Jobs) Innovation Odi Case StudiesProduct Service Value In Use (Jobs) Innovation Odi Case Studies
Product Service Value In Use (Jobs) Innovation Odi Case Studies
 
Ifad Ifpri Revised
Ifad Ifpri RevisedIfad Ifpri Revised
Ifad Ifpri Revised
 
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual Report
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual ReportPreview Deck | Finance and Accounting Outsourcing (FAO) Annual Report
Preview Deck | Finance and Accounting Outsourcing (FAO) Annual Report
 
Business standard
Business standardBusiness standard
Business standard
 
Springer heinze on_valuelinks_addis_3
Springer heinze on_valuelinks_addis_3Springer heinze on_valuelinks_addis_3
Springer heinze on_valuelinks_addis_3
 
Business Development Services (BDS) Market Diagnostics in Uganda
Business Development Services (BDS) Market Diagnostics in UgandaBusiness Development Services (BDS) Market Diagnostics in Uganda
Business Development Services (BDS) Market Diagnostics in Uganda
 
Future watch global biobanks_presentation
Future watch global biobanks_presentationFuture watch global biobanks_presentation
Future watch global biobanks_presentation
 
Amr Salar Proposal Final
Amr Salar Proposal FinalAmr Salar Proposal Final
Amr Salar Proposal Final
 
Planning governance assessment english
Planning governance assessment englishPlanning governance assessment english
Planning governance assessment english
 
Market Opportunity Analysis
Market Opportunity AnalysisMarket Opportunity Analysis
Market Opportunity Analysis
 
Strategic Sourcing 2012
Strategic Sourcing 2012Strategic Sourcing 2012
Strategic Sourcing 2012
 
Bpr training v 2.0 4.1.2012
Bpr training   v 2.0 4.1.2012Bpr training   v 2.0 4.1.2012
Bpr training v 2.0 4.1.2012
 
14_GPM_RC
14_GPM_RC14_GPM_RC
14_GPM_RC
 

Mehr von East Africa Dairy Development

Mehr von East Africa Dairy Development (20)

Eadd: Feeding Dairy Cattle in East Africa
Eadd: Feeding Dairy Cattle in East AfricaEadd: Feeding Dairy Cattle in East Africa
Eadd: Feeding Dairy Cattle in East Africa
 
Eadd dairy manual 19032012
Eadd dairy manual 19032012Eadd dairy manual 19032012
Eadd dairy manual 19032012
 
Eaddnews issue9 2012 email
Eaddnews issue9 2012 emailEaddnews issue9 2012 email
Eaddnews issue9 2012 email
 
Eadd news volume 8
Eadd news volume 8Eadd news volume 8
Eadd news volume 8
 
Eadd mid term report 2008 2010
Eadd mid term report 2008 2010Eadd mid term report 2008 2010
Eadd mid term report 2008 2010
 
Inserts for folders
Inserts for foldersInserts for folders
Inserts for folders
 
Eadd kenya kokiche dairy company ltd brochure
Eadd kenya kokiche dairy company ltd brochureEadd kenya kokiche dairy company ltd brochure
Eadd kenya kokiche dairy company ltd brochure
 
Dairy commercialization presentation moses nyabila
Dairy commercialization presentation moses nyabilaDairy commercialization presentation moses nyabila
Dairy commercialization presentation moses nyabila
 
Feed Manual Review Workshop Report
Feed Manual Review Workshop ReportFeed Manual Review Workshop Report
Feed Manual Review Workshop Report
 
Dairy Value Chain Uganda Report
Dairy Value Chain Uganda ReportDairy Value Chain Uganda Report
Dairy Value Chain Uganda Report
 
Dairy Value Chain Rwanda Report
Dairy Value Chain Rwanda ReportDairy Value Chain Rwanda Report
Dairy Value Chain Rwanda Report
 
Dairy Value Chain Kenya Report
Dairy Value Chain Kenya ReportDairy Value Chain Kenya Report
Dairy Value Chain Kenya Report
 
Newsletter march09
Newsletter  march09Newsletter  march09
Newsletter march09
 
EADD Uganda Newsletter Issue 1
EADD Uganda Newsletter Issue 1EADD Uganda Newsletter Issue 1
EADD Uganda Newsletter Issue 1
 
EADD Today Inaugural Edition
EADD Today Inaugural EditionEADD Today Inaugural Edition
EADD Today Inaugural Edition
 
EADD Today Special Edition
EADD Today Special EditionEADD Today Special Edition
EADD Today Special Edition
 
Dairy news vol 1
Dairy news vol 1Dairy news vol 1
Dairy news vol 1
 
Dairy news vol 2
Dairy news vol 2Dairy news vol 2
Dairy news vol 2
 
Dairy news vol 3
Dairy news vol 3Dairy news vol 3
Dairy news vol 3
 
Dairy news vol 3
Dairy news vol 3Dairy news vol 3
Dairy news vol 3
 

Business Development Services (BDS) Market Diagnostics in Rwanda

  • 1. FINAL REPORT CONSULTANCY SERVICES FOR BUSINESS DEVELOPMENT SERVICES (BDS) MARKET DIAGNOSTIC IN RWANDA CONDUCTED BY: SUBMITTED TO: EAST AFRICA DAIRY DEVELOPMENT (EADD) PROJECT JANUARY 2009 REPORT FOR BDS DIAGNOSTIC IN RWANDA 1 FIT RESOURCES JANUARY 2009
  • 2. REPORT FOR BDS DIAGNOSTIC IN RWANDA 2 FIT RESOURCES JANUARY 2009
  • 3. CONTENTS Background and introduction 3 Methodology and activities 3 Preplanning 4 Training 5 Field work 5 Sampling 6 Key challenges of fieldwork 7 Data processing 7 Presentations 8 Key conclusions of the methodology 8 Findings of fieldwork and data analysis 9 CONSUMER SURVEY by location 9 Locations covered and key informants interviewed 9 Targeted SME consumers interviewed 9 Market profiles 11 Key demand side constraints and opportunities 25 Business development services that address those constraints and opportunities 26 Specific policy constraints that are affecting MSE product markets 28 SUPPLIER DIAGNOSTIC by location 29 Existing providers/ services and their locations 29 A workable data base of the BDS actors 30 BDS suppliers interviewed 30 Types of services and price of services, how providers cover costs, profitability, existing 31 contractual arrangements and promotional/marketing strategies Capacity gaps of interviewed suppliers 34 Priority supply side constraints, market failures, and market opportunities 34 Comparison of interviewed suppliers 36 The enabling environment for BDS 37 Conclusions 38 Characteristics of the market for BDS in each specific region in relation to existing supply, 38 demand and transactions An insight into the potential of each target market location 39 Level of market distortion 40 Comparative information on the in-country sites and the 3 markets 41 Recommendations 42 Other current or proposed dairy sector interventions 42 Sustainable solutions to address priority market constraints and market failures 42 Illustrative market based interventions 51 Approaches and methodologies 55 Strategies which ensure effectiveness and efficiency 56 Strategies which ensure sustainability 59 Suggested BDS providers/delivery channels to target for future interventions 62 Selecting appropriate BDS providers 63 BDS performance measurements at the BDS market level 63 Annexes 67 Database of SME actors including persons interviewed Database of BDS suppliers including persons interviewed Database of targeted suppliers Itinerary FIT/RI scope of work Final instruments Data collected BDS training report REPORT FOR BDS DIAGNOSTIC IN RWANDA 3 FIT RESOURCES JANUARY 2009
  • 4. Researcher training report Background and Introduction In a bid to improve life through poverty reduction, a consortium of organisations comprising of Heifer International as lead, TechnoServe Inc, ILRI, ABS-TCM and ICRAF launched a 4 year program dubbed EADD (East Africa Dairy Development) funded by Bill and Melinda Gates Foundation. The programme aims to move smallholder farmers out of poverty by delivering farmer-focused, value-chain activities that are implemented simultaneously to stimulate dairy farm production, dairy-sector services, business development and dairy market pull. The vision of success for the EADD is that the lives of 179,000 families—or approximately one million people—are transformed by doubling household dairy income by 2018 through integrated interventions in dairy production, market-access and knowledge application. The consortium deemed it important to carry out a market assessment to understand the characteristics of the BDS markets in relation to existing supply, demand and transactions in the dairy sectors in some key sites in Kenya, Uganda and Rwanda. The information would: • Provide an insight into the potential of each market • Clarify opportunities for interventions • Define broad strategic approaches FIT Resources Kenya (FIT) in collaboration with Research International East Africa Ltd (RIEAL) were contracted to coordinate the market diagnostic in key locations in Kenya. The findings and recommendations of this consultancy will contribute to the market focused, sub sector approach of the EADD aimed at improving the functioning of BDS markets. The final scope of work is attached to this report (Annexes/Final Revised SOW). FIT Resources act as the lead agency and contract holder, to provide strategic leadership in devising and conducting the business development service consumer research and supplier diagnostic. Research International conduct the field work as a sub contractor, to collect primary and secondary qualitative and quantitative information, analyse, process and present the data. Methodology and activities To achieve the above results the following activities were agreed on: • Preplanning (planning meetings, research boundaries on the basis of project resources, existing sub sector information, market assessment goal/ objectives/research hypothesis, developing and testing the tools, screening interviewers, target locations in each country, preliminary key informants, other current or proposed interventions) • Training (training of EADD staff, field research teams and BDS training workshop) REPORT FOR BDS DIAGNOSTIC IN RWANDA 4 FIT RESOURCES JANUARY 2009
  • 5. • Field work (target groups, sample size, areas covered, team structure, consumer survey and supplier diagnostic) • Data processing (developing the data base of BDS actors, profiling the markets, choose priority constraints, identifying and scoping out sustainable solutions, defining ‘illustrative’ market based interventions and strategies, suggest appropriate BDS providers, establishing comparative information, identifying BDS performance measurements) • Presentations (stakeholder workshops and final presentation) Preplanning Relevant background information was sourced via a series of planning meeting with Technoserve and EADD consortium members. Meeting presentations and minutes are attached to this report (Annexes/Process meetings). These meetings also included setting the research boundaries on the basis of project resources, preliminary selection of target locations and the agreed definition of ‘small holder farmer’. The market assessment goal, objectives and research hypothesis were agreed as follows: The market assessment goal is: To understand the characteristics of the BDS markets in relation to existing supply, demand and transactions in key sites in Rwanda. The market assessment objectives are: • To provide an insight into the potential of each market • To clarify opportunities for interventions • To define broad strategic approaches The research hypothesis is: If current BDS market dynamics are better understood then strategic approaches and interventions can be devised to develop BDS markets in a sustainable manner and benefit SMEs. It was agreed that the FIT/RI team would build capacity of the project staff to undertake future market assessments during the life of the project. Due to budget constraints a targeted number of sites were discussed that affords the best opportunities to kick-off the project and generate some ‘quick wins’. A training itinerary was also agreed upon to capacitate EADD project staff in BDS and research skills. FIT Resources provided lead for the overall assignment and liaison with Technoserve and the country offices on all the pre planning activities. FIT Resources coordinated the field preparation with Research International and Technoserve including: tool development and testing, researcher selection and training and itinerary development. Different tools were developed to cover the demand (consumer) side and supply (supplier) side of the market. The final instruments and itinerary are attached to this report (Annexes/Final Instruments). The following activities were undertaken prior to the commencement of fieldwork: screening of team members, preparation and translation of questionnaires and preparation of reporting tools and manuals. Research International personnel met field staff/counterparts and finalised the selection of target locations and identification of key informants in each country. Research International finalised the training of field researchers including EADD project staff and preparations for field research. REPORT FOR BDS DIAGNOSTIC IN RWANDA 5 FIT RESOURCES JANUARY 2009
  • 6. No secondary information was used as the project is building on a baseline survey and existing value chain assessments in each country. The comprehensive examination of targeted BDS markets and value chains will assist EADD in designing systemic solutions to key market problems. The two subsystems—BDS markets and value chains—are complementary components of the larger market system into which MSEs must integrate. REPORT FOR BDS DIAGNOSTIC IN RWANDA 6 FIT RESOURCES JANUARY 2009
  • 7. Training 1. BDS training workshop - FIT Resources personnel implemented an indepth EADD staff stakeholder training in Uganda (to include Uganda and Rwanda stakeholders). This 2 day formal training in diagnostic skills covered the principles and practices of BDS, BDS market development, BDS market assessment and BDS market development programme design and performance measurement. The aim of this training was to capacitate project staff and provide stakeholders with a contextual framework for the research. The workshop presentations, training materials and training reports are attached (Annexes/BDS Training). 2. Training of field research teams - teams including Technoserve and consortium member staff, were subject to an in country briefing session prior to fieldwork commencement. The training sessions covered methodology of the assessment stages, sampling, tools and stimulus methods to use with market players and how to complete reporting formats. The aim of this training was to capacitate project staff to engage in further market diagnostics beyond the life of this collaboration. The workshop presentation and training reports are attached (Annexes/Research Training). Field work In order to complete this assignment within the defined period, a large teams of interviewers, team-leaders and supervisors were assigned. Team members were recruited from the RIEAL regional offices, according to specifications based on experience and qualifications. The RIEAL Principle Researcher and a field coordinator coordinated the research at all stages, and focused on ensuring that outputs were planned in advance so time-schedules were met. They worked alongside the RIEAL existing field management structure that forms the line management for the field departments. Daily reporting of results and activities from each team was channeled back through this central management team. Research International led and implemented the field research in collaboration with EADD project staff. Consultations and market observation were undertaken during the fieldwork which included visiting identified target locations plus identifying and holding interviews with key informants and targeted dairy sector stakeholders relevant to the selected sites. Consumer survey - Consumer research was implemented with a selection of consumers from the core market itself with a focus on farmers and chilling plant stakeholders. However the definition regarding ‘small holder farmer’ was reviewed and altered during a process meeting and the ceiling lifted of the number of cows as many farmers in Uganda and Rwanda are large compared to Kenya’s extensive small holder population. Constraints and opportunities were then identified in the areas of market access, input supply, technology/product development, management and organisation, policy, finance and infrastructure. The size and strength of the market in each specific area of the country for those services was estimated broadly plus key sub sector constraints, market failures and market opportunities defined from the demand side. Key business development services were identified that address the specific constraints and opportunities. REPORT FOR BDS DIAGNOSTIC IN RWANDA 7 FIT RESOURCES JANUARY 2009
  • 8. Supplier diagnostic - Based on the identified priority services, relevant suppliers were identified and a supplier survey implemented with service providers from the support markets to determine who is supplying BDS and how. Constraints, market failures and opportunities were then determined from the supply side. A comparison of suppliers was also undertaken and the level of market distortion anticipated. Stakeholders from the business environment such as local authorities, regulators/policy makers were contacted as required to provide an overview of the business environment. The BDS Market Assessment Survey took place in Rwanda from 14th - 25th November, 2008. The area of coverage of the survey research was Nyagatare and Gatsibo Districts covering the following sectors and sampling points: Nyagatare Nyagatare Gatsibo BMN Mbare • Bushoga • Karangazi • Kiramuruzi • Tabagwe New sites not included will be covered by Technoserve staff beyond the life of this consultancy. Sampling The sample included 316 interviews spread across the 3 sites. 302 farmers were interviewed. As per the briefing instructions, the teams covered a 20KM radius from the location of the chilling plant. Depending on the number of locations located within the 20 KM radius, an equal number of sampling points were picked in each location to ensure spread of interviews. For each location, the team leader picked the starting point randomly, and using the random route method, farmers who fitted the set criteria were interviewed: Selection criteria included: • Dairy farmer • Have mature milking cows Interviews were conducted on farmers who possessed up to 20 cows either being milked or dry currently. There was a shift from the earlier limit of 5 cows due to the widespread ownership of traditional cows in the region. Again it was also realized that even when farmers owned vast herds here, their milk production remained low as they keep indigenous cows that produce an average of between 1 and 4 liters each per day. The team traveled as one and on reaching the research site (village) members were dispatched in different directions. The left hand rule applied in selecting the dairy farmer to interview starting from a given landmark. This meant that once an interview took place, the interviewer moved 3 households keeping on the left hand side then interviewed the 4th household. However, the above rule was only applied where the population was dense and where farms were relatively big (over 10 acres), the skipping was limited to 1 household. At the household, the interviewers first spoke to the adult member of the family, mainly the husband or wife though at some instances, some other family members who were directly responsible for dairy farming gave information. REPORT FOR BDS DIAGNOSTIC IN RWANDA 8 FIT RESOURCES JANUARY 2009
  • 9. In Rwanda, farmers are allocated grazing land by Government in accordance with the size of cattle herd one has. A centralized area is then set aside where people are allowed to build their homes and the farms are located at a considerable distance away from their homes. This state of affairs meant that our interviewers in most cases could not physically see the cows to ascertain some claims by farmers. As for suppliers (14 were interviewed), the team picked supplier names from the farmers, other suppliers and also those they came across in the trading centres. From the list, a score was given to each and every supplier based on set criteria (capacity to deliver services, closeness to SMEs e.g. in terms of understanding their culture and geography, commercial focus e.g. level of profitability, focus on services, SMEs or BDS, organizational independence- especially from donor funds, legally registered and willingness/interest/ability to partner). This set of requirements not withstanding, and because of their scarcity, all suppliers listed were sought for interview, although a few could not be found. Key challenges of the fieldwork • Late start in Rwanda due to technical hitches and strict protocols e.g. Government requirement of research license • Accessibility of some sectors o Transport – lack of efficient public transport. Tabagwe Sector is approximately 20 kilometers away from Nyagatare Township and the only available mode of public transport was motorbikes. o Rains – the timing of the study coincided with rainy season and this affected the movement. • Special events – the arrest of a senior Rwanda Government official in Germany and the visit to Gatsibo district by Kenya’s President Kibaki coincided and interrupted fieldwork as farmers were called on to participate in the demonstrations and rallies that were organized by the Government countrywide. • Few/ uncooperative BDS suppliers. Some of the BDS suppliers were either uncooperative or hard to find. There were very few BDS suppliers of dairy products and services and as such farmers have limited choices. • Research fatigue – a good number of farmers complained of having participated in other recent agricultural and other types of surveys whose results and benefits they had no idea of. • Questionnaire duration. Some respondents complained it was taking too long to go through a questionnaire. This was particularly so during the first few days when most of the interviewers took over one and a half hours (90 minutes). Data processing Research International processed all the data collected on an ongoing basis. Research International personnel have developed a database of actors (BDS providers in each of the areas under study are listed, categorized by service provision and their location recorded). A further database defines specific provider gaps and capacities including a score against agreed selection criteria for determining target partner providers. A database of the small and micro enterprises (SMEs) interviewed has also been developed. The full data set is attached to this report (Annexes/Databases). To understand the markets, RI examined three key issues - demand, supply and transactions (the interaction between demand and supply) during the market assessment. REPORT FOR BDS DIAGNOSTIC IN RWANDA 9 FIT RESOURCES JANUARY 2009
  • 10. The outcome of analyzing this information forms a picture of each BDS market showing how it works, where the opportunities for growth are, and where significant problems lie. Data analysis was undertaken to profile the markets, establish comparative information on the in-country sites and the 3 markets and draw conclusions from the data. A round table meeting was held in early December 08 with stakeholders to overview the methodology and process of data processing and analysis and reach consensus on the priority constraints/opportunities and identify possible solutions. The meeting presentation is attached to this report (Annexes/ Process meetings). Sustainable solutions that address priority supply side and demand side constraints were discussed. Illustrative market based interventions were also developed with a focus on potentially sustainable/profitable services that are replicable in the private sector. Strategies which ensure effectiveness, efficiency and sustainability were also discussed alongside suggested BDS performance measurements. The data processing plan was then circulated for stakeholder feedback during the analysis process and the data plan is attached to this report (Annexes/Process meetings). Comparative information on the in- country sites and 3 BDS markets was also produced. Presentations FIT Resources and Research International personnel collaboratively implemented a presentation and action planning at a stakeholder workshops in Rwanda with staff, consortium members and key informants on 9th January 09. This workshop included a short training presentation on the basic principles and practices of BDS and the Market Development Paradigm. All the research findings were presented and proposed illustrative solutions and performance measurements discussed. Feedback was recorded and an action plan developed. FIT Resources then prepared this final draft report and will present the final report to Technoserve with support from Research International in Nairobi, Kenya by FIT Resources and Research International on January 30th 2009. Key conclusions of the methodology • Outsourcing the MA to a research company ensured a more effective and efficient MA process. • A combination of outsourcing and internal capacity building ensured the best possible results. The likelihood of useful research results was ensured as EADD stayed close to the MA process. • The ability of EADD staff to remain consistent to the process was questionable. Staff members were not always available for the trainings and meetings as required plus EADD field staff were not available to partner on the field work in some locations drawing into question the long term ability of field staff to implement further diagnostics in new locations. • Determining a clear hypotheses and outlined MA goal and objectives ensured a more effective delivery of analysed data from Research International. • The MA focused on a holistic picture of the market and incorporated both sides of the market equation—demand and supply. REPORT FOR BDS DIAGNOSTIC IN RWANDA 10 FIT RESOURCES JANUARY 2009
  • 11. Findings of fieldwork and data analysis CONSUMER SURVEY by location Locations covered and key informants interviewed Nyagatare BMN Nyagatare Mbare Gatsibo Bushoga Karangazi Kiramuruzi Tabagwe Targeted SME consumers interviewed The consumer survey in Rwanda covered 302 respondents. The respondents qualified to be interviewed if they were small scale milk producers and specifically for Rwanda if they had less than 20 traditional cows. For every site covered, a minimum of 100 farmers were interviewed. Of the 302 respondents interviewed, 80 percent (243) were males while 20 percent (59) were females. A majority of the male respondents (26%) were aged between 36 – 45 years while for the females the majorities (32%) were aged 46 – 55 years. Only few respondents (4%) were aged between 18 – 25 years and above 64 years. Distribution of Respondents by age % of total sample interviewed BASE=302 Males 80 Females 20 Most of the farmers practiced mixed farming –crop growing and cattle keeping. Expectedly and as per the recruitment procedure all respondents were dairy farmers. This was followed by food crop farming at 81%. Cash crop farming in the region is insignificant as only 3% of the respondents reported growing cash crop. As per the recruitment procedure all the respondents interviewed were the key decision makers on dairy farming activities. Currently, a majority (88%) of the farmers milk between 1 – 5 cows despite most of them having more than 5 cows. In terms of herds kept, Majority of the farmers in Nyagatare claimed to own more than 5 cows while in Gatsibo the proportion of those who have more than five was small. Farmers in the three sites were found to be keeping mixed breeds. However, a majority of them (84%) keep indigenous breeds. About half of the farmers interviewed also keep cross breeds 46% while those who keep pure breeds are less than 10%. The findings also indicated that Nyagatare-BMN had more pure breeds (14%) compared to Gatsibo and Nyagatare-Mbare where farmers claimed to own 8% and 4% of pure breeds. REPORT FOR BDS DIAGNOSTIC IN RWANDA 11 FIT RESOURCES JANUARY 2009
  • 12. Nyagatare Nyagatare TOTAL Mbare BMN Gatsibo BASE: 302 101 100 101 % Pure breed 9 4 14 8 Cross breed 46 47 54 39 Indigenous 84 88 88 76 On average, farmers with pure breeds reported to produce 17 liters of milk per day while cross breeds produced 8.5 litres per day. Expectedly, the productivity for traditional breeds was reported to be the lowest. In terms of regions, Nyagatare BMN and Mbare farmers produce more milk per day with an average of about 10 litres per day compared to Gatsibo where daily production average was reported to be around 6.6 liters. Expectedly, the amount of milk sold per day on average within the three sites is less than the amount produced as some milk is spared for domestic use. The table below indicated the average amount of milk sold by farmers: District Average liters Average Difference produced per liters sold (unsold milk day per farm per day - liters) Nyagatare-Mbare 9.5 6.7 2.8 Gatsibo 6.6 5.5 1.1 Nyagatare-BMN 10.1 7.3 2.8 Across the three sites covered in the research, most of the farms were between 1 – 5 acres in size. Market profiles Awareness and affordability of services/ inputs When respondents were asked the dairy inputs/ services they are aware of, AI, mineral supplements, vet treatment services and veterinary vaccination were mentioned by more than 90% of the farmers. Other inputs that were mentioned by more than 60% of the respondents include insecticide and tick sprays and supplementary feeds. However, despite AI ranking as the service majority of the farmers were aware of (98%), complete familiarity of its benefit was rated below average. Across all services/ inputs in totality, farmers were least aware of chaff cutters and hay balers. Expectedly, almost all farmers were not familiar with the benefit of the two farm equipments. In terms of affordability, of the 7 top most inputs/ services that farmer were aware of, supplementary feeds, veterinary vaccination and AI were rated as highly unaffordable to farmers. The table below summarises some key inputs/ services that farmers are aware of REPORT FOR BDS DIAGNOSTIC IN RWANDA 12 FIT RESOURCES JANUARY 2009
  • 13. in regard to familiarity with the benefits, availability, affordability and most important overall. REPORT FOR BDS DIAGNOSTIC IN RWANDA 13 FIT RESOURCES JANUARY 2009
  • 14. Not affordable Completely familiar even after Most with benefit of Very strongly saving up overa Aware Easily available needed Artificial Insemination (AI) 98 46 70 84 34 Mineral supplements 92 96 84 87 16 Vet Treatment Services 93 63 71 82 29 Veterinary vaccination 91 80 84 87 54 Insecticide and Tick 84 79 89 26 sprays 84 Supplementary feeds 63 24 30 74 56 Disinfectants for Cleaning 58 59 47 84 31 Information/training on 47 23 21 80 37 animal husbandry On enquiring from the farmers the services/ inputs they have purchased or received in the past for their dairy animals, supplementary feeds and disinfectants were ranked lowest among the 7 top services farmers were aware of as shown in the figure below. However, farmers expressed concerns on the adequacy of most inputs/ services that they have received in the past 12 months. In terms of services/ inputs that were being used nowadays, only three performed averagely and above. These were mineral supplements 77%, insecticide and tick sprays 66% and veterinary treatment services 52%. REPORT FOR BDS DIAGNOSTIC IN RWANDA 14 FIT RESOURCES JANUARY 2009
  • 15. Inadequate amount Purchased in Aware Ever purchased P12M Used nowadays Artificial Insemination 98 77 62 40 52 (AI) Mineral supplements 96 94 92 77 30 Vet Treatment Services 93 80 74 52 45 91 91 82 48 23 Veterinary vaccination 84 84 82 66 37 Insecticide and Tick sprays 63 34 24 12 71 Supplementary feeds 58 46 45 33 39 Disinfectants for Cleaning 47 7 4 1 67 Information/training on animal husbandry Services/inputs ever purchased or received Generally, the 3 markets do not indicate any significant differentials in the demand for services and inputs purchased or received. However, some slight differences were noted in Nyagatare (BMN & Mbare) where almost all farmers claimed to have vaccinated their animals and in Nyagatare Mbare where AI services were claimed to have been used by over 80% of the farmers. This may mean that the drive to transform herds from indigenous to cross breeds is at a higher level in Nyagatare which conforms to the breeds kept. Services/Inputs ever purchased or received Nyagatare Nyagatare TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 % Artificial Insemination (AI) 77 83 72 77 Veterinary treatment services 80 82 82 76 Veterinary vaccination 91 88 87 97 Supplementary feeds 34 33 38 31 Mineral supplements 94 96 99 87 Disinfectants - for cleaning and sterilizing 46 51 44 43 Insecticides & tick sprays 84 76 89 87 Although some farmers observed that through savings, they could purchase some of the services or inputs, milk coolers, supplementary feeds and veterinary vaccination were perceived to be out of reach by a majority. Those who said services/ inputs were not REPORT FOR BDS DIAGNOSTIC IN RWANDA 15 FIT RESOURCES JANUARY 2009
  • 16. affordable were asked why they thought so. The following table provides a breakdown of some of the reasons advanced (sample: all who said not affordable): Service/ product Total So expensive May be able to sample could never use if saves consider using up % Artificial Insemination (AI) 79 34 66 Veterinary treatment services 104 29 71 Veterinary vaccination 57 54 46 Supplementary feeds 140 56 44 Mineral supplements 90 16 84 Disinfectants - for cleaning and 85 31 69 sterilizing Insecticides & tick sprays 126 26 74 Seeds to grow fodder 82 46 54 Milk testing kits 90 44 56 Hay bailers 87 47 53 Milk coolers 140 68 32 Metal milk churns 115 37 63 Information/training on animal 94 39 61 husbandry For the services/ inputs that farmers have received in the past, a majority of the farmers reported having paid something the last time to access certain services/ products. The fees paid ranged depending on the type of service, distance from where the service provider was coming from, among other things. The table below provides an average cost of different products and services offered to the farmers: Disinfectants Artificial Veterinary - for Insecticides Insemination treatment Veterinary Supplementary Mineral cleaning and & tick (AI) services vaccination feeds supplements sterilizing sprays BASE: All who ever received.... 234 242 274 102 284 139 254 % Yes 93 98 95 86 98 96 97 No 7 2 5 14 2 4 3 Amount paid (mean in Fr) 4100 8900 1900 19100 10800 14400 11300 REPORT FOR BDS DIAGNOSTIC IN RWANDA 16 FIT RESOURCES JANUARY 2009
  • 17. Level of satisfaction with service/inputs received The following table shows the level of satisfaction with services/inputs received: - for cleaning Supplementa Disinfectants Insemination supplements & tick sprays Insecticides Level of satisfaction vaccination Veterinary Veterinary with service received treatment sterilizing Artificial services ry feeds Mineral last time and (AI) BASE: All ever purchased/received service 234 242 274 102 284 139 254 Completely satisfied 42 74 94 54 87 77 85 Partly satisfied 34 21 6 34 12 22 13 Not at all satisfied 24 4 - 12 1 1 2 A majority of the farmers who accessed the seven most popular services/ inputs reported being satisfied with the quality and nature of services provided. For those reporting complete satisfaction, the lowest reported complete satisfaction was recorded among farmers who received Artificial Insemination (42%) while the highest was registered among farmers receiving veterinary vaccination at 94%. Other levels of satisfaction stood at 74% for veterinary treatment services, 54% for supplementary feeds, 87% mineral supplements, 85% for insecticides and tick sprays, and 77% for disinfectants for cleaning and sterilizing. While there is room for improvement among those reporting complete satisfaction, particularly among those reporting lower than 90%, there is more to be done among those reporting partial satisfaction and those claiming not satisfied at all. Areas where milk could be sold Respondents mentioned a number of possible areas where milk could be sold as presented below: Area Nyagatare Nyagatare Areas could sell milk TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 % Bulking/ cooling center 75 88 60 75 Hawker/ brokers 57 70 29 72 Farmers cooperative /group /association 47 49 38 54 Direct to homes e.g. Neighbours or family members 47 49 49 45 Direct to institutions e.g. school, hospital, food kiosk 25 25 31 19 Milk bar 26 32 31 16 There were more farmers reporting milk bulking and collection centers as places where they could sell their milk. This was reported by 75% of the farmers. It was followed by REPORT FOR BDS DIAGNOSTIC IN RWANDA 17 FIT RESOURCES JANUARY 2009
  • 18. hawkers/ brokers at 57%, and neighbors/ relatives and cooperatives/farmer groups tying at 47%, milk bars 26%, institutions 25%. However on being asked where they are selling milk currently a majority of them reported selling to brokers/ hawkers (52%) followed by neighbours/ family members, milk bulking/ cooling centers or to farmers associations. Interestingly, hawkers are not a popular buyer in Gatsibo district, while selling to neighbours and family members seem to be the most preferred here. Nyagatare Nyagatare Types of customers TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 % Hawker 52 62 26 67 Cooling plant 47 51 47 42 Direct to homes e.g. Neighbours or family members 47 49 49 45 Farmers cooperative/group/association 47 49 38 54 Milk bar 26 32 31 16 Direct to institutions e.g. school, hospital, food kiosk 25 25 31 19 Bulking center 11 12 8 12 Processor 10 11 4 15 Broker at farm gate 5 8 3 5 However, in terms of preference among those who sell to more than 1 channel, ‘direct to homes’ and ‘farmers co-operatives’ emerged as the preferred buyers. Adequacy of information received on where could sell milk Asked to explain what they felt about the information they received regarding where they could sell their milk, a majority of the farmers indicated they received just enough information (72%). Only a paltry 2% reported receiving what they considered as a lot of information. However, farmers in Nyagatare BMN seem to be divided almost equally among those claiming to receive just enough information (52%) and those saying they received very little information (46%). Nyagatare Nyagatare Info received TOTAL Mbare BMN Gatsibo BASE 302 101 100 101 % Very little 26 23 46 11 Just enough 72 75 52 87 A lot 2 2 2 2 Asked to indicate the other services they enjoyed from their main buyers besides buying their milk, the majority of farmers (57%) reported receiving no other services at all. The table below shows some of the services received by farmers from some milk buyers: REPORT FOR BDS DIAGNOSTIC IN RWANDA 18 FIT RESOURCES JANUARY 2009
  • 19. Nyagatare Nyagatare TOTAL Gatsibo Services received Mbare BMN BASE: Total Sample 302 101 101 100 % Advance on milk payments 20 22 19 20 Farm inputs - seeds, fertilizer 5 2 6 8 Animal feeds/ supplements 7 6 6 8 Milk collection from the farm or near 6 5 4 10 farm AI services 7 4 4 12 Animal health services- treatment, 19 21 16 20 vaccination and drugs Training on animal husbandry 12 4 18 14 Information on market prices 8 11 5 9 Delivery/ transport of farm inputs and animal feeds 3 3 3 4 None 57 53 63 55 Of the services received, some farmers claimed to have paid for them while some were either not sure or did not pay anything. The main mode of payments for these services was the check-off system with only 28% claiming to pay in cash. Services paid for (%) Advance on milk payments 30 Farm inputs - seeds, fertilizer 31 Animal feeds/ supplements 50 Milk collection from the farm or near farm 26 AI services 50 Animal health services- treatment, vaccination and drugs 65 Training on animal husbandry 14 Information on market prices 8 Delivery/ transport of farm inputs and animal feeds 10 Extra services required from milk buyers When asked if they would require extra services from the milk buyers, majority of the farmers responded positively. Below is the list of services they would expect to get from the milk buyers: Nyagatare Nyagatare TOTAL Gatsibo Services/ inputs required Mbare BMN BASE: Total Sample 302 101 101 100 % Advance on milk payments 37 30 37 46 Farm inputs - seeds, fertilizer 18 14 22 18 Animal feeds/ supplements 30 23 36 33 Milk collection from the farm or near farm 25 23 25 27 REPORT FOR BDS DIAGNOSTIC IN RWANDA 19 FIT RESOURCES JANUARY 2009
  • 20. AI services 25 23 23 30 Animal health services- treatment, vaccination / drugs 29 28 35 26 Training on animal husbandry 30 25 31 35 Information on market prices 28 24 27 33 Delivery/ transport of farm inputs and animal feeds 18 16 19 18 None 33 31 41 29 In regard to payments for milk, 2/3 of the farmers indicated they are paid in cash after a specified period as shown in the table below. However, in Gatsibo, a significant number of farmers confirmed to receive money through their bank accounts. Two modes of payments also emerged as the most preferred means of receiving payments by farmers: Nyagatare Nyagatare Mode of payment for sold milk TOTAL Mbare BMN Gatsibo BASE: Total Sample 302 101 100 101 % Paid cash on delivery 8 4 9 11 Paid in cash after a specified period 62 73 64 50 Cash deposited to a financial institution 14 9 14 18 Barter - exchange milk for other services 0 - - 1 Farmers who deliver milk to the formal market were asked how they deliver milk to the market. ¾ of the respondents claimed to deliver milk on their own to the market. However, in terms of the preferred mode, over ¾ of the farmers would prefer their milk to be picked up at farm gate. This pattern was similar in all the 3 markets: Nyagatare Nyagatare Current milk delivery system TOTAL Mbare Gatsibo BMN Base 181 60 58 63 % The buyer provides for transport from the farm or near farm 25 33 12 29 Use your own means to transport (bike, walk) etc 75 67 88 71 Overall, among the farmers whose milk is collected by the buyer, slightly less than half felt it was either reliable or very reliable. However, in Gatsibo (though the base was small) the majority of the farmers rated the transport to be unreliable. Nyagatare Nyagatare Buyer reliability TOTAL Mbare BMN Gatsibo BASE: All provided transport by the buyer 45 20 18 7 REPORT FOR BDS DIAGNOSTIC IN RWANDA 20 FIT RESOURCES JANUARY 2009
  • 21. % [wt=5] Very reliable 24 15 44 - [wt=4] Reliable 20 15 28 14 [wt=3] average 16 15 11 29 [wt=2] Poor unreliable 13 20 6 14 [wt=1] Very unreliable 27 35 11 43 REPORT FOR BDS DIAGNOSTIC IN RWANDA 21 FIT RESOURCES JANUARY 2009
  • 22. Frequency of milk collection Milk is collected generally once a day across the three regions: Nyagatare Nyagatare Milk collection TOTAL Mbare BMN Gatsibo BASE: All provided transport by the buyer 45 20 18 7 % Once in a day 93 95 89 100 Two times a day 4 - 11 - Three times 2 5 - - Asked to express their feeling on whether they thought this was adequate or inadequate, a majority (62%) felt it was inadequate. However, in Nyagatare BMN, 56% of the respondents felt it was adequate. Adequacy of Milk Nyagatare Nyagatare collection TOTAL Mbare BMN Gatsibo BASE: All provided transport by the buyer 45 20 18 7 % Adequate 38 30 56 14 Inadequate 62 70 44 86 Awareness of cooling plant Almost all respondents were aware of a cooling plant near them. Some of the cooling plants mentioned include: • Mudakos • Nyagatare cooling plant • Mbare • Terimbere mworozi (Karangazi) • Rwabiharamba dairy • Musenyi • Bashumbambeza • Karama • Mubyatarama • Kirebe • Cyangarama • Kamate A majority of the farmers (90%) also claimed that the cooling plants were owned by farmers’ cooperative groups in the region. Farmers stated they would expect to get the following services from the cooling plants: Nyagatare Nyagatare Cooling plant services Total Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 Credit facility 74 69 72 81 REPORT FOR BDS DIAGNOSTIC IN RWANDA 22 FIT RESOURCES JANUARY 2009
  • 23. Farm inputs - seeds, fertilizer 46 42 48 48 Animal feeds 62 51 67 67 Milk collection from the farm or near farm 54 55 44 62 AI services 57 51 57 63 Animal health services - treatment and prevention 74 70 78 72 Vaccination and drugs 71 64 69 80 Training on animal husbandry 58 58 50 66 Information on market prices 74 69 72 81 Credit facility, animal health services – treatment and prevention and information on market prices emerged as the key services farmers need, although most of the other services and inputs are also needed at varying levels which reflects a very high demand. Asked if they would be happy with check-off as mode of payment for their milk, nearly all farmers (93%) said that they would be very happy. Reaction to check-off Nyagatare Nyagatare payment system TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 % Happy 93 92 92 95 Not sure 4 2 7 3 Unhappy 3 6 1 2 Skills/ information needed by farmers Majority of the farmers (83%) indicated they do not have the skills needed for good dairy farming across the 3 regions. When asked to mention the areas they needed more information on, the following emerged: Nyagatare Nyagatare Skills/info required TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 Disease id, treatment & prevention 72 76 77 63 Improvement of milk production 66 71 61 66 Drug administration 61 62 60 59 New animal feeds 60 64 55 59 Milk prices 55 53 55 57 Cattle breeding 54 57 41 64 Dairy farm record keeping 30 34 25 31 Record keeping 25 21 26 28 Public health issues and requirements 22 19 27 21 Awareness of government policies 19 17 20 21 Buyers 13 11 14 13 Whether ever received any useful information Farmers were asked whether they had ever received any useful information about dairy farming. About 69% reported not to have received any. The same trend was recorded REPORT FOR BDS DIAGNOSTIC IN RWANDA 23 FIT RESOURCES JANUARY 2009
  • 24. from the three regions. Those reporting having received useful information were then asked to indicate what services they had received. The advice/ information were mainly stated to be from government extension workers and to some extent, the NGO’s. The following Table shows the breakdown: Nyagatare Nyagatare Info received TOTAL Mbare Gatsibo BMN BASE: All ever received information 93 24 36 33 % Improvement of milk production 54 50 56 55 Awareness of government policies 33 25 28 45 Cattle breeding 32 33 25 39 New animal feeds 24 25 25 21 Disease identification, treatment and prevention 19 17 25 15 Drug administration 18 8 28 15 Dairy farm record keeping 10 13 8 9 Record keeping 2 - 3 3 Public health issues and requirements 1 - 3 - Milk prices 1 - - 3 Whether plans to change anything Asked whether they planned to change anything about their dairy farming in the next 1 year, nearly all farmers indicated they have some plans in mind. However, 85% of the farmers highlighted breed improvement as the key change they would like to implement. The figure below shows areas farmers mentioned they would like or plan to improve on in the next 1 year. Planned changes for farm and dairy improvement: Improve the quality of my milk / improve my milk handling skills 11% Improve feed storage methods 12% Buy farm equipments 15% Grouping with other farmers to get cheaper inputs 15% Improve the management of my dairy as a business 23% Group together with other farmers / join association 23% / join coop / join producer group Improve feed by buying supplements 23% Improve my knowledge about dairy farming 28% Improve the veterinary treatment / drugs used on 30% cattle Enlarge size of herd / Buy more cattle 30% Improve feed through growing better / more feed 31% REPORT FOR BDS DIAGNOSTIC IN RWANDA to zero grazing Change feeding 32% 24 FIT RESOURCES JANUARY 2009 Improve building 33% Improve breeding / breed of cattle through breeding 85% methods / use AI
  • 25. REPORT FOR BDS DIAGNOSTIC IN RWANDA 25 FIT RESOURCES JANUARY 2009
  • 26. To achieve the above desired changes farmers mentioned the following measures as drivers they are definitely likely to adopt: • Grouping together with other farmers or joining co-operative to benefit from economies of scale - e.g. cheap farm inputs • Use of AI services • Growing of more and quality feed • Enlarging size of herd • Adopting zero grazing methods Keeping records Overall, only a small number of farmers reported keeping records which were mainly on milk production and sales. Nyagatare Nyagatare Record keeping TOTAL Mbare Gatsibo BMN BASE: All who keep records 37 7 16 14 Milk sales 95 100 94 93 Milk production 81 57 94 79 Record on animal births 59 57 56 64 AI services records 38 29 38 43 Treatment and vaccination records 35 29 38 36 Feeds record 11 - 25 - Milk sales Milk production Record on animal births AI services records Treatment and vaccination records Feeds record Profitability Despite not having any farm records, a majority of the farmers claimed to know the profitability of their dairy farm. About two thirds of the farmers indicated knowing the level of profitability of their dairy farms. Males (68%) were more likely to know the profitability of their dairy farming business than their female counterparts (56%). Farmers in Gatsibo 70%, followed by those in Nyagatare Mbare (69%) seem more knowledgeable about the profitability of their farms than their counterparts in Nyagatare BMN (57%). Given that Gatsibo has more of zero grazing practices than the other two markets, it may be easier to monitor levels of expenditure viz avis incomes and thus keep a tab on profitability. REPORT FOR BDS DIAGNOSTIC IN RWANDA 26 FIT RESOURCES JANUARY 2009
  • 27. Nyagatare BMN, which has bigger herds of the indigenous cattle, may still have more farmers who keep cattle for traditional values rather than as business. Nyagatare Nyagatare Awareness on farm profitability TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 Yes 66 69 70 57 No 34 31 30 43 Technology (mobile phones) Penetration of mobile phone within the three areas is high as attested by the table below. Generally, about 82% of the farmers reported owning/ having access to a mobile phone. This was almost uniformly distributed across all segments. Nyagatare Nyagatare Mobile phone access TOTAL Mbare Gatsibo BMN BASE: Total Sample 302 101 101 100 % Yes 82 80 84 82 No 18 20 16 18 Asked which services they would like to access via the mobile phone sms service, cow disease alerts, milk prices, and market for breeds, availability of new products, and training/ field days/ dairy farming workshops emerged as the five leading pieces of information they would require. Nyagatare Nyagatare Info required by phone TOTAL Mbare Gatsibo BMN BASE: All with/ have access to a mobile phone 248 81 85 82 Cow disease alerts 75 73 73 78 Milk prices 72 70 64 83 Market for breeds 71 69 69 74 Availability of new products and services 62 63 64 60 Trainings/ field days/ dairy farming workshops 61 58 64 61 Availability of milk payments 50 47 44 60 New markets 50 48 39 65 Sale of cows 50 57 41 52 Quantity of milk supplied 48 51 45 49 New market opportunities 48 44 40 60 Access to loans 38 32 41 39 Farmers indicated high willingness to pay fees ranging from Fr 1000- 2100 to be able to access these services. See the figure below: REPORT FOR BDS DIAGNOSTIC IN RWANDA 27 FIT RESOURCES JANUARY 2009
  • 28. Info would be ready to pay for Info would like to access via mobile phone Milk rejected at processor level to inform farmer 33 37 Access to loans 35 38 New market opportunities 41 48 Quantity of milk supplied 40 48 Sale of cows 44 50 New markets 45 50 Availability of milk payments 42 50 Trainings/field days/dairy farming workshops 57 61 Availability of new products and services 54 62 Market for breeds 65 71 Milk prices 67 72 Cow disease alerts 68 75 Capital Almost all farmers indicated that they require capital to develop their dairy farming business. Most of the farmers (61%) say they would seek credit from banks. See table below: Nyagatare Nyagatare Credit options TOTAL Mbare Gatsibo Bmn BASE: All need lump sum/ capital 278 90 99 89 Banks 61 61 64 58 Micro finance institutions 13 12 12 16 Cooperative SACCO 8 6 8 11 Cooling plant 6 7 7 4 No source 4 4 4 4 NGOs 3 4 4 1 Family/ friends 3 4 1 2 Suppliers 1 1 - 1 Government 0 - - 1 Awareness of farmer lobby organization Only a few farmers were aware of an organisation that looks after their needs apart from Gatsibo where 45% claimed to be aware: REPORT FOR BDS DIAGNOSTIC IN RWANDA 28 FIT RESOURCES JANUARY 2009
  • 29. Awareness of Nyagatare Nyagatare organization TOTAL Mbare Gatsibo Bmn BASE: Total Sample 302 101 101 100 % Yes 38 30 45 39 No 62 70 55 61 In regard to membership to a farmer’s co-operative majority of the farmers belongs to none. However, in Nyagatare BMN slightly over half claimed to be members of a cooperative. Whether member of a Nyagatare Nyagatare Cooperative TOTAL Mbare Gatsibo Bmn BASE: Total Sample 302 101 101 100 Yes 45 34 49 53 No 55 66 51 47 Challenges faced by farmers Low and fluctuating milk prices coupled with delayed payments, inadequate and low quality foliage for feeding cattle – e.g. grass and Napier grass, irregularity and unaffordability of AI services and unaffordable/ unreliable animal treatment services were some of the key challenges farmers highlighted as major constraints to their dairy farming. Low milk prices combined with fluctuating milk prices and delayed milk payments accounted for the highest single challenge at 67%. In terms of gender, there were no significant variations although the findings seem to indicate that male farmers were significantly (74%) more likely to complain about low / fluctuating milk prices/ delayed payments compared to their female counterparts (37%), while female farmers were significantly (82%) more inclined to complain about inadequate/ low quality animal foliage than their male colleagues (58%). The same trend was noticed for irregular/ unaffordable AI services. Age wise, there were no significant differentials across except that farmers aged less than 35 years were significantly less likely to complaint about the adequacy/ quality of foliage than their counterparts in higher age groups. As per the markets, Gatsibo records the lowest complaint about low milk prices (51%) as compared to the 2 Nyagatare Sectors – BMN 82%, and Mbare 68%. Perhaps this can be explained by the fact that Gatsibo reports the lowest milk output, (and thus higher prices) and less dependence on milk brokers unlike the other two. However, Gatsibo reports the highest complaint (72%) regarding adequacy/ quality of foliage available in the region – reflecting its bigger dependency on zero grazing for its dairy farming. BMN records the lowest at 55% mirroring its larger grazing fields. Other challenges mentioned are as per the table below: Gender Age Region Main REPORT FOR BDS DIAGNOSTIC IN RWANDA 29 FIT RESOURCES JANUARY 2009
  • 30. challenges/ 18- 36- constraints TOTAL 56+ Nyagatare Nyagatare Male Female 35 55 Gatsibo facing farmers Mbare BMN BASE: Total Sample 302 243 59 76 143 83 101 101 100 Low/fluctuating milk prices/ delayed payments 67 74 37 71 60 74 68 51 82 Inadequate/ low quality foliage - e.g. grass, napier grass etc 63 58 82 38 68 70 62 72 55 Irregular/ unaffordable AI services 55 58 41 58 47 66 61 45 59 Unreliable/ unaffordable animal health services 46 46 46 46 44 53 38 45 56 Unreliable source/ unaffordable supplementary feeds 43 44 37 46 37 48 45 33 52 Inaccessible loan facilities (high interest etc) 37 38 32 41 35 31 30 42 40 Poor climatic conditions 32 34 24 33 37 27 38 26 33 Lack of various dairy management skills 19 20 16 9 20 27 19 13 26 Disease outbreaks 13 14 8 13 15 12 12 10 18 Insecurity 10 10 10 3 13 12 5 23 3 Exploitation by middle men 8 9 3 10 6 11 11 1 12 Unavailability of quality seed for growing feed on farm 7 7 7 7 6 8 9 5 6 Unavailability of milk cooling facility 5 5 5 6 4 8 6 5 4 High transport cost 4 5 3 2 5 7 4 5 4 Inaccessible roads 2 2 - 1 2 3 2 - 3 REPORT FOR BDS DIAGNOSTIC IN RWANDA 30 FIT RESOURCES JANUARY 2009
  • 31. Key demand side constraints and opportunities The following are the constraints and potential opportunities. Constraint Opportunity Inadequate foliage and grass to feed • Provide seed to grow fodder to selected animals due to poor climatic conditions farmers who have larger farms. They can – draught. thus sell to others at competitive prices • Introduce supplementary feeds Irregular and unaffordable AI services • More AI providers needed at main trading centres at village level • Establish scheduled visits by AI providers to all villages • Train farmers on basic procedures of conducting AI Inaccessible/ unaffordable loans to • Provide easily accessible/ affordable promote dairy farming. financial products that are developed/ tailored to meet farmer needs Low and fluctuating milk prices • Establish more strategic milk collection/ hindering farmers from planning their cooling centres future • Improve on roads to facilitate easy/ cheaper milk transport • Establish a local dairy processing plant Poor/ unreliable animal treatment and • Additional veterinary doctors needed at vaccination services village level • Further training for skill upgrading for vet technicians Unaffordable supplementary feeds • More suppliers needed beyond the reach of many small scale • Use of locally available raw materials need to farmers be explored to make them affordable Unreliable source of supplementary • More farmers should be trained on how to feeds prepare them Disease outbreaks • Modern lab testing facility established in the region • Vaccination of cattle strengthened Business development services that address those constraints and opportunities The following table outlines the BDS that address these constraints and opportunities: Constraint Opportunity BDS that address those constraints & opportunities Inadequate foliage and • Provide seed to grow INPUT SUPPLY such as creating grass to feed animals due fodder links between farmers and to poor climatic conditions • Supplementary feeds suppliers and enabling suppliers to – draught. reach more farmers and develop their capacity to offer better quality inputs. REPORT FOR BDS DIAGNOSTIC IN RWANDA 31 FIT RESOURCES JANUARY 2009
  • 32. Irregular and unaffordable • More AI providers INPUT SUPPLY such as AI services needed at main trading facilitating links between farmers centres at cell level and AI suppliers and enabling • Scheduled visits by AI suppliers to reach more farmers providers to all villages and develop their capacity to offer better, less expensive inputs. Inaccessible/ • Easily accessible/ FINANCE such as helping farmers unaffordable loans to affordable financial identify and access funds through promote dairy farming. products developed formal and alternative channels tailored to meet farmer that include supplier or buyer needs by banks and credits, factoring companies, MFIs equity financing, venture capital, • Major milk buyers e.g. credit unions and commercial dairy cooperatives banks (letters of credit, etc.) consider introducing simple financial products that are affordable by the farmers Low and fluctuating milk • Establish more milk MARKET ACCESS such as prices hindering farmers collection /cooling identifying and establishing new from planning their future centres markets for products plus the • Improve on road creation of links between all the networks actors and helping buyers to • Establish locally a dairy expand their outreach to, and processing plant to take purchases from, farmers. This may advantage of the also include helping farmers to excess milk. produce to buyer specifications. INFRASTRUCTURE such as establishing sustainable infrastructures that enable farmers to increase sales and income e.g. refrigeration, processing facilities, transport systems, communication centers, and improved roads. Poor /unreliable animal • Additional INPUT SUPPLY as above treatment and vaccination veterinary/vaccination services doctors needed at TRAINING & TECHNICAL village level ASSISTANCE such as workshops • Further training for skill to develop the capacity of farmers upgrading and suppliers to better plan and • Scheduled visits to manage their operations and villages to attend to improve their technical expertise. farmer needs This may also include fostering links between service providers and farmers. Unaffordable • More suppliers needed INPUT SUPPLY as above. This supplementary feeds • Use of locally available may also include encouraging beyond the reach of many raw materials need to more potential suppliers to meet REPORT FOR BDS DIAGNOSTIC IN RWANDA 32 FIT RESOURCES JANUARY 2009
  • 33. small scale farmers be explored to make the market demand. Unreliable source of them affordable TECHNOLOGY & PRODUCT supplementary feeds. DEVELOPMENT such as identifying new technologies. Disease outbreaks • Modern lab testing INFRASTRUCTURE as above facility established in region • Vaccination of cattle strengthened Poor transport/ road • Improved road INFRASTRUCTURE as above networks that slows networks in the deep growth of the dairy sector rural areas • improvement of the transport systems e.g. introduction of minibuses to compete with the motor bikes and help farmers to market their milk cheaply Specific policy constraints that are affecting MSE product markets The following are some of the policy constraints that are affecting the MSE product markets: 1. Locating households away from dairy farm The Government of Rwanda has introduced a land development and resettlement policy in this region where farmers are settled in centralised areas while the grazing farms are allocated a considerable distance away. Managing the farm becomes tricky and there are added costs of travelling and a worker to keep watch and graze the animals. Milking may also not be properly done and accounted for in the absence of the farm owner and there could be cases of cheating about the milk output. 2. Strict legal and public health regulatory requirements The strict enforcement of minimum regulatory standards for suppliers particularly milk handling/ collection, may be responsible for keeping very few suppliers engaged in this business. As a result, farmers cannot access certain services easily and affordably as the supply competition is limited. In order for the BDS market to be stimulated for faster growth, the strict legal/ health requirements may need to be relaxed a bit until such a time suppliers have grown and the need for strict enforcement is really needed. 3. Government continued involvement in service provision Government policy of providing subsidised AI and veterinary treatment and REPORT FOR BDS DIAGNOSTIC IN RWANDA 33 FIT RESOURCES JANUARY 2009
  • 34. vaccinations, though positive in its intentions can only serve to establish the sector from infancy. However, sustained growth can only be achieved where market forces of supply and demand are left free to operate. The government should reduce its involvement to regulating and creating an enabling environment. Its continued presence and active participation in service provision only serves to discourage and choke private sector competition. This situation where effective competition is lacking, has led to poor services being dispensed judging by some of the complaints received during fieldwork. For instance there were reports of poor quality semen which led to farmers getting poorer grade calves in contrast to what was promised during insemination. The tragedy of this is that farmers only discover the problem after nine months when birth takes place. Again farmers reported waiting for days before a veterinary doctor arrives in their village to treat their cattle. REPORT FOR BDS DIAGNOSTIC IN RWANDA 34 FIT RESOURCES JANUARY 2009
  • 35. SUPPLIER DIAGNOSTIC by location Existing providers/ services and their locations The following breakdown shows how suppliers were distributed across this region. A total of seven suppliers were identified in Nyagatare/ Tabagwe sectors. However, only six were found/ interviewed. In Karangazi sector, six suppliers were listed but only five were found/ interviewed. In Kiramuruzi sector four suppliers were identified but only three were found and interviewed. A workable data base of the BDS actors A workable data base of these BDS providers is attached to this report (Annexes/Databases). BDS suppliers interviewed List of suppliers interviewed as attached above. Types of services and price of services, how providers cover costs, profitability, existing contractual arrangements/relationships and promotional/marketing strategies Types of services The common services/ inputs provided in this area include veterinary treatment and vaccination services, mineral supplements, insecticide and tick sprays, and disinfectants for cleaning and sterilizing, and supplementary feeds. Others are information/ training in animal husbandry and artificial insemination (AI). Across the two districts, it appears that the services provided are similar although Nyagatare District could be defined as more of a cattle keeping district while Gatsibo would qualify more as an area of mixed farming practices with less land for cattle rearing. Grazing fields are therefore bigger in Nyagatare than in Gatsibo. Services/ inputs provided Nyagatare BMN Nyagatare Mbare Gatsibo (No of suppliers – (No of suppliers (No of suppliers BASE=6) BASE=5) BASE=3) Vet treatment services 6 5 3 Disinfectants - for cleaning 6 5 3 and sterilizing Mineral supplements 3 5 3 Info/training in animal 5 4 2 husbandry Insecticides & tick sprays 6 2 2 Supplementary feeds 2 1 2 Milk testing kits 2 3 1 Seeds to grow feed 2 2 2 REPORT FOR BDS DIAGNOSTIC IN RWANDA 35 FIT RESOURCES JANUARY 2009
  • 36. Vet vaccination 2 1 Milk collection/ bulking 2 2 Milk advance payments or 2 credit services Artificial Insemination 2 2 Information on dairy 1 1 1 markets Metal milk churns 2 1 Price of services and how providers cover costs/ profitability Across the 3 sites, suppliers interviewed indicated that they do not charge their customers for any information they dispense concerning dairy farming. They make their money and profits by selling/ charging for the conventional products and services provided like selling drugs, AI provision or treatment of cows. When pricing services and inputs suppliers considered several factors to arrive at a given price, as follows: • Wholesale price of input from source • Transport cost/ distance covered if it is an outreach service • Taxes payable on service/ input • Rent • Whether demand for input/ service is high or low • Competition • Profit margin • Big suppliers like Agrotech Nyagatare who is associated with Agrotech chain of animal drug shops, explained that they do not determine prices, but that the prices are dictated from the head office in Kigali. • For instance, some AI providers reported buying semen to fertilize one cow at 500 fr from the Government agents only to sell this at 1500 fr to the dairy farmer. Besides, the farmer pays transport cost separately. Usually, this will be the cost of hiring a motor bike by the AI provider. One of the AI providers told of cases where they are sometimes forced to forego payments when they come across needy farmers who are unable to pay for services. Such costs are absorbed through government subsidiaries like ERAGIC – an institution that promotes modern dairy development through easy access to AI services. The commonest form of payment for services/ inputs rendered was cash after service, across all types of service providers. When the service provider is a Cooperative or an Association of farmers, members enjoy the check-off system facility which allows them to pay later through deductions from their weekly/ monthly payment for milk deliveries. Other forms of payment options are delayed/ staggered payment and payment by cheque. Staggered payment is normally allowed for instance where a cow is either dry or sick until it heals and resumes being milked. Should it die, then the charges are written off - if it is only one. The following table shows the common modes of payments for services and the associated challenges. REPORT FOR BDS DIAGNOSTIC IN RWANDA 36 FIT RESOURCES JANUARY 2009