Mrs Mary Munene, Land O'Lakes International Development at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

1. Strengthening Cooperatives to Promote Trade
and Market Access

2. Land O’Lakes’ Deep
Cooperative and Rural Roots
- Member-owned
‒ Organized in 1921 as a dairy marketing cooperative
- Expanded into farm inputs
‒ Late 1920s, at our members’ request
- Now a fully diversified agribusiness
‒ Business Development Services
‒ Innovation and Market Research
‒ Global Reach and Access to New Markets

3. Farm-to-Market Spectrum

4. The Bigger Picture
Second-largest farmer-owned agricultural
cooperative in the U.S. with $14 billion in
annual sales in 2012.
Ranks first in
livestock feed
and animal
milk replacers
in the U.S.
Products and
seed wholesale,
pioneered the
Answer Plot®
approach and
#1 in crop
protection and
seed wholesales.
Dairy foods
develops milk
powder, whey,
butter, cheese
and other dairy
products.
Created the
quarter-stick of
butter.
Part of
Corporate Social
Responsibility
Arm. Operates
like a not-forprofit. Over 30
year history.

5. Who We Are
- Division of Land O’Lakes, Inc. founded in 1981
- Our mission is to help farmers around the
world improve incomes and quality of life
- Leverage corporate experience and expertise
- Part of Land O’Lakes Corporate Social
Responsibility Program
- Programs primarily funded by USAID and USDA

6. Where We Work
-
Since 1981, we have implemented 275+ projects in 76
countries

7. 2012 Results and Impact
− 100,000 rural households supported
− 21,000 jobs created/strengthened
− 42,000 farmers adopted new
technologies
− 64,000 received technical
assistance/food security training
− 40,000 use improved health/nutrition
services
− 61,000 producer group members
supported
− 22,000 rural households adapted to
better natural resource management
techniques

8. Promoting Access to
Trade and Markets in
Kenya and Uganda
- USAID Kenya Dairy Sector Competitiveness
Program (KDSCP)
-
5-year, $9 million program that closed in 2013 and impacted
338,000 households by increasing smallholder incomes by over
200 percent
- Cooperative Development Program (CDP)
-
-
5-year program funded by USAID
Designed to help cooperatives become more competitive, increase
their revenues and profits, and expand the benefits they provide
to farmer-members
Potential to expand to Rwanda and Bangladesh

9. KDSCP Implementation
Approach

10. KDSCP Approach Led to
Big Impact
- Milk purchased from smallholders increased by
105 MT and $180 million
- Volume of milk conforming to quality standards
increased by 140 percent
- Resourced $28 million in non-project funds
- 135 producer organizations strengthened
- More than 1,000 firms now providing new
business services to producers
- 155,000 producers received short-term training

11. CDP’s Focus on Vertical
Integration
- Key components:
-
Quality management
Member relationship
Governance: board and management interaction
Patronage and member loyalty
- In the next two years, the program expects to show:
-
25 percent increase in household income for members of vertically
integrated dairy cooperatives
25 percent increase in revenue for vertically integrated cooperatives

12. Dairy Development
In Uganda and Kenya

13. Capacity Building Approach
- Value addition and quality to final product
- Link members to
services
- Ensure transparency
for members, including
record keeping and
communications
- Focus on strong, fair
leadership and
governance

14. Accessing Markets
‒ Support set-up of management information
systems for efficiencies to deal with
internal and external customers
‒ Capacity building of cooperatives on the
law of contract and providing guidelines on
developing win-win contracts
‒ Support in implementation of HACCP
systems; achieve ISO certification in food
and safety management makes it easy for
them to get contracts

15. Accessing Markets
‒ Create and support forums for players to
meet and make business deals, breeders
shows, trade fairs, field days, exhibitions etc.
‒ Stimulate demand for products and services
(e.g. - milk consumption campaigns)
‒ Product development and branding of
products
‒ Support cooperatives to lobby government to
create enabling business environment (e.g.
-review of policies that stifle trade)

16. Learn More
- Visit our Website: www.idd.landolakes.com
- Follow us on Facebook:
www.facebook.com/LandOLakesInternation
alDevelopment
- Follow us on Twitter: @LandOLakesIDD