Report - Nederlandse ambassade in Kigali, Rwanda
Transcription
Report - Nederlandse ambassade in Kigali, Rwanda
REPUBLIC OF RWANDA MINISTRY OF AGRICULTURE AND ANIMAL RESOURCES Report Dairy Subsector Working Group October 2010 Co Chairs RARDA – Theogene RUTAGWENDA Land O’Lakes – Roger Steinkamp Heifer International – Charles KAYUMBA Land O’Lakes Facilitators: Vincent KALIMBA Willy NYIRIGIRA Charles BIZIMANA Dairy Sector Working Group RARDA/Land O’Lakes, Inc./Heifer Int. TABLE OF CONTENTS 1. Forward.......................................................................................................... 1 2. Introduction ................................................................................................... 3 3. Issues and Responsibilties (3rd meeting) ..................................................... 4 4. Key Questions and Answers ....................................................................... 22 5. Annex - Participant Lists............................................................................ 35 Dairy Sector Working Group RARDA/Land O’Lakes, Inc./Heifer Int. Forward Roger Steinkamp, PhD I have had the honor to serve in organizing the Dairy Sector Working Group (DSWG). People who responded to the call to come together to identify and propose solutions to the group are to be commended for dedicating a full three days of their time to this endeavor. It demonstrates their commitment to the dairy sector and willingness to continue the discussions into the future as part of a continuous forum that will be hosted by the newly formed Rwanda National Dairy Board (RNDB). We have attempted to capture and summarize the views expressed by the group that came from all points along the dairy value chain. I would make the following observations a general overview of their deliberations. Three general points stand out when looking at the issues identified by the working group. Milk quality Identified by Land O’Lakes early in 2008 as the major constraint to growth of the dairy sector, the issue has become a matter of discussion all along the dairy value chain. This is a problem that cannot be addressed sequentially, but rather concurrently. The metaphor would be a symphony orchestra. The music only starts when all parts of the orchestra are ready and able to play. To date, most of the focus has been on the farm. But farmers have demonstrated they can deliver a low bacteria count milk to the collection centers if given an incentive to do so. The Golden Rule of quality milk production is to cool milk to 4° C within two hours of milking and then keep it cold. This limits bacterial growth. However, it has been documented that collection centers have two major problems. First they lack adequate water for cleaning facilities, equipment and milk cans. Secondly, the cooling capacity of the bulk tanks cannot cool milk quickly enough to preserve the quality of milk delivered. Typical tanks take 4-6 hours to cool a full tank from 30° C to 4° C. Either the compressor needs resizing or the method of loading the tank (i.e. stagger milking times of farmers to load the tank more slowly so the combined temperature of the tank never goes above 12° C) needs to be changed to correct the problem. The next link in the chain is equally weak. Milk picked up at 4° C rises to 22° C during typical transport in cans on the back of an open truck. Insulated tanks could solve the problem. When milk can be milked in hygienic conditions; cooled to 4° C in two hours and maintained at that temperature until delivery to plant or seller, the quality problem will be solved. Milk Pricing The driving force for change in quality is milk pricing The common sense approach is to pay for what is desired and reward those that produce it. This has two elements. First, reward those that produce low bacteria milk. Currently, it is obvious there is no incentive to produce low bacteria milk. A farmer that spends little or no time and money on washing cans or keeping his milking area clean receives the same price for dirty milk as the farmer that spends time and money washing cans and keeping the area clean. This is just common sense. Prices should reflect what is desired. It does not necessarily meaning raising prices, the market (consumer) determines that. It means paying less for milk that does not meet the standard desired. Current platform tests are not sensitive enough to accomplish the task. In addition, it is not economically feasible to test milk at the farm level unless the farm is producing hundreds of liters per day. So, the testing routine should take place a point in the value chain that makes sense economically. Most likely this is at the collection center where testing would add only about a 1 RWF to the price of a liter at the tank level. Prices can then be determined according to bacterial counts of milk. The trick will be to start the process. Land O’Lakes has proposed a program to accomplish this task. Platform tests can still be used to reject the worst milk. Secondly, pay for the elements of milk that is desired. Added water is a common complaint. Buyers continue to purchase milk by the liter. Switching to kg will not solve the problem either. Paying simply by volume or weight actually gives farmers or MCCs an incentive to add water. Added water disappeared from the milk supply in the US when buyers switched to purchasing milk on solids (fat and SNF). This could be considered. Otherwise the game continues with people adding water and other elements attempting to fool the density test. Simple component testing can be by the same lab that tests for bacteria. 1 Dairy Sector Working Group RARDA/Land O’Lakes, Inc./Heifer Int. Instantaneous testing is not essential for payment, but routine testing is. This is a common mindset among milk buyers. The most affordable bacteria testing takes 48 hours to incubate the sample and count it. The farmer will be rewarded or punished through the price that is paid. Will the milk find it’s way into the milk supply? Yes, in the short run. But, once the system is in place and functioning, the supply will improve. In any case, it is no worse than the current supply. Market price sensibility One final observation that comes through in the work of DSWG is the sensitivity of the milk market to pricing. On one hand plants continue to function at only a fraction of the installed capacity while the milk sellers appear to grow their market. This was first put forward by Land O’Lakes in the milk audit and consumer survey in 2008. Since that time it has become more evident that the market for milk selling above 600 RWF may be growing, it is still small and most likely reflects purchasing power as opposed to demand or need. In other words many people desire milk but may not have the disposable income to purchase it. When looking at the milk sellers, one finds a variety of prices in the kiosks and ways of utilizing milk in about 48 hrs. This milk sells at prices between 150-300 RWF/liter. The newly formed RNDB and Milk Sellers Assn can play a key role in expanding the market at all levels. 2 Dairy Sector Working Group RARDA/Land O’Lakes, Inc./Heifer Int. Introduction The Dairy Sector Working Group was formed at the behest of the Honorable Minister Agnes Kalibata at the Joint Sector Review on 15 April 2010. RARDA, Land O’Lakes and Heifer International were asked to Co-Chair the group. It was tasked to identify the issues and propose the solutions. The first meeting of the DSWG was called on April 21, 2010. Two more meetings were held on 16 June, 2010 and 16 August 2010. This document represents the compendium of issues defined by the group. The co-chairs quickly agreed on the following principles: Involvement of active participants in the dairy chain (producers, processors and sellers) Take into account past work but more importantly get current input directly from industry Arrive at a point where not only issues are indentified but who should be responsible for pragmatically addressing the issues. The chairs organized the first meeting using the ASWG mailing list plus the Rwanda Dairy Board list that included people form along the dairy chain. Lists of participants are found in the annex “Participant Lists”. We knew from the outset that the process would be long and consist of several meetings. The first meeting focused on defining what we know (or conversely, what we don’t know). Rather than spending time repeating a host of studies that tended to report similar things, and that many participants had already read at some point, key questions were solicited about the three key areas of the dairy value chain (producers, processors and sellers). The meeting took over ½ a day and the responses indicated which areas were least understood in the industry, and provided a foundation for the next meeting. The second meeting focused on finding answers to the questions raised in the first meeting and consolidating them into issues to be addressed. Again, active members in the industry played a vital role in this meeting. Participants were asked to divide into groups representing each area of the value chain to address the questions and formulate issues. The results can be found in section (Answers to Key Questions). This meeting took an entire day. Finally, the third meeting addressed what should be done about each issue and who should be responsible. The overlying principle was not to simply shrug off responsibility for action to the government, but to assign responsibility to those who are directly concerned by a given issue. Again, three groups were formed to address specific issues in each of their parts of the value chain. Then observations were consolidated to illustrate which issues affected various parts of the chain and reach consensus on actions to be taken and by whom. The result is found in the following section of this report. As the working group completed its task, it became evident that this is not a one-time task but an ongoing process that will evolve. As result, the primary recommendation of the group was to turn this effort over to the Rwanda National Dairy Board that would be tasked to organize quarterly meeting to monitor and report the health and issues of the Dairy Value Chain. The RNDB has agreed to this process of hosting a form for discussions that currently take place in many corners of government and NGOs and provide a forum open to anyone interested in the dairy sector. 3 DSWG final consolidated document (issues, specific actions and responsibilities) Producers Processors Sellers INFRASTRUCTURE ISSUE COMMENTARY Farmers must be able to deliver milk to an MCC for cooling within about an hour of milking. More sites, closer to farmers will alleviate the problem. On the other hand investment could be made in roads and transport to allow for greater distances in the same time allowance. 4 Increased number of MCCs X The rule is for milk to be at 4 C within 2 hours of milking. Assuming farmers can deliver milk within an hour of milking, that leaves 1 hour to cool. Increase number of cooling facilities and capacity to cool milk at below 10degrees So, either the TORs for tanks need to include this information or farmers must milk at different times and centigrade deliver over a period of several hours, respecting the golden rule of 4 C within 2 hours of milking. For example, a tank can be loaded with about 400 liters of milk and pull temperature within about 40 minutes. Then more milk can be added, keeping the combined temperature below 10 C. Sustainability of MCC (Management of MCCs), To put in place a simple model design of a modern RARDA BRD and other banks Cooperatives Private investors RDB Donors RNDB INTERVENTION To put in place new MCCs, to play the lead role Provide loans to cooperatives Contribution to put in place MCCs To invest money in this business To sensitize investors To support in purchase of coolers, road construction Mobilization , Coordination on all dairy issues RARDA/Land O’Lakes, Inc./Heifer Int. X rehabilitation and modernization of MCCs Virtually none of the current MCCs can cool milk in a timely manner. The problem is the tanks that have been and are being installed. They are designed to cool milk on modern dairy farms from at least two milkings. AGENCY Dairy Sector Working Group This section summarizes the issues, interventions and agencies that should be involved in their resolution. The check boxes on the left indicate the part of the dairy chain that is most concerned about a given issue. ISSUE COMMENTARY AGENCY INTERVENTION MCCs small processing plants X increase the number of processors 5 improved feeder roads X X Improve road infrastructure To have mobile coolers ( refrigerated trucks) There is a belief that processing plants closer to farms Private will lead to increased market. Care should be exercised investors since current plants operate at 10% capacity. Perhaps Cooperatives more diversity of products for lower grades of milk RBS such as ghee or cheese could be considered. There is a great excess in capacity for UHT, cup yogurt and pasteurized milk that needs to be used before further investment in this area. Transportation investment may be cheaper than further investment in plant. MININFRA Improved roads will lead to faster delivery of milk and MINALOC greater access of trucks to collection centers. DISTRICTS X farm infrastructure Farm infrastructure, such as a dry, clean place for milking and access to water for cleaning is critical. However, not all farms will qualify for normal loans. New products may need to be developed to service farms smaller than 3 cows. BANKS Individual farmers PSF Rural consultants through BDS MFIs Milk Sellers Association RNDB Establishment of those small plants To provide technical support in the design and machine requirements(standard) Initiate and execute road construction& rehabilitation Work through local administration to achieve this in collaboration with MININFRA Initiate and execute road construction& rehabilitation Monitoring role, orientation, technical support To sensitize on current issues, mobilization, request for support Improve access to loan for farmers Have to try to comply with the required (modern) farm infrastructure To help farmers to design viable proposals for bank loans To provide small loans Advocacy for farmers Facilitation in bulk purchase of equipments(making them available for farmers) RARDA/Land O’Lakes, Inc./Heifer Int. RARDA RNDB Establishment of those small plants Dairy Sector Working Group Producers Processors Sellers INFRASTRUCTURE ISSUE Rural electrification X X electricity supply 6 water resource development AGENCY INTERVENTION NGOs Construction of improved shades… Cooperatives To help farmers to get loans at Banks (to make easy the linkage between farmers and banks) MINALOC Through districts/JADF DISTRICTS Advocacy through JADF MININFRA Work/support and link the population/coops with electricity providers Priority should be given to MCCs or farms large enough Cooperatives Raise issues at concerned levels to merit a cooling tank. RECO/RWASCO Improve and increase electrification in rural areas RNDB Advocacy NGOs Advocacy and linkages between MCCs and government/Electricity supplier Same as for electrification issue above NGOs To provide potable water at MCCs and maybe farms and bring about/study alternative water supply techniques Districts should include water supply to farms, MCCs in their performance contracts Cooperatives study and bring about alternative water harvesting Priority needs to be given to MCCs for adequate water techniques for washing tanks and cans. Farms that deliver milk to them would be the second priority since water could be a return haul to the farms from the MCC. RARDA/Land O’Lakes, Inc./Heifer Int. water resources X COMMENTARY Dairy Sector Working Group Producers Processors Sellers INFRASTRUCTURE ISSUES COMMENTARY ON STANDARDS AGENCY There are several levels to applying standards. RNDB First there are RBS standards. Although all aspects of milk RARDA Standards (availability and and testing procedures are defined, they should be dissemination) prioritized. Total Bacteria Count (TBC) in milk is the RBS foundation of milk quality. The action of bacteria on milk Cooperatives Emphasis on high milk quality turns it sour and defines its ultimate use. The COMESA standards and standard for Class I milk is 300,000/ml. RBS Very Good milk implement/use of a price is 500,000/ml. Most milk currently is over 50 million/ml. In NGOs incentives to obtain good general, few understand the implications nor understand the quality milk need and means of cleaning the milk supply. There is no compromise for high end products such as pasteurized and Emphasis on health standards UHT products. Alcohol testing of milk is not proven sensitive for all milk handlers along the enough to attain the quality needed. Real TBC counts are value chain simple to perform and a must. INTERVENTION Sensitize farmers RARDA staff to assist in disseminating information to farmers through Inspection at farm at farm level Certificafication, exchange information with RNDB Dissemination of standards to farmers, to ensure milk quality at farmer level., Lab tests/results at Cooperative level Technical support, trainings Dairy Sector Working Group Producers Processors Sellers MILK QUALITY 7 X certification for the farming X system Milk Components would be the second most import factor in “quality”. Not all milk is equal. Different components of milk are essential to various products. For example, butter makers value butterfat and pay for it. Cheese makers may want more Solids-Non-Fat. Fluid milk only wants the minimum amount fat required for labeling and marketing. Excess fat is separated during standardization of milk before packaging and used for high value products. Paying for milk solids (whatever component is most important) makes more sense that by volume. It eliminates the temptation to add water to milk since it will lower it’s value and the milk check will not increase. Certification or inspection is poorly understood. In countries RARDA/Land O’Lakes, Inc./Heifer Int. Lower class milk can be used for in the 48 hour market (as is it currently marketed) and for fermented products, especially cheese and traditional ghee. ISSUES CONCERNING PRODUCERS COMMENTARY AGENCY with effective inspection systems, it only guarantees that producers processors and sellers have the potential to produce and conserve quality. It checks that hygienic environments are possible and temperatures are maintained. It conducts routine checks on quality to monitor the system. This is absent in Rwanda, but RARDA/RBS has made a start. At the farm level several issues become apparent. RARDA 8 ISAR, ISAE Work with producers First is production. Feeding regimes influence the length of (trainings…) lactation and the components in the milk. It also is manifest Private Companies X X X farming practices/ guidelines in daily production. Conservation of feed for dry season, Cooperatives adequate water, and balanced rations are all issues. Work with/suggest NGOs farmers/MCCs to haul milk Secondly, genetic improvement has been a priority. Daily FAO INTERVENTION Dairy Sector Working Group Producers Processors Sellers MILK QUALITY Improvement of Artificial Insemination To link research with environment ( research in improved feeds) To provide services to farmers To acquire basic equipment, incentives to improve quality of milk Provision of cow Feeding trainings Technical Support i RARDA/Land O’Lakes, Inc./Heifer Int. ISSUES COMMENTARY AGENCY INTERVENTION under good condition of production potential has been the narrow selection criteria temperature and time(use of for A.I. Many more factors and breeding schemes could be cooling trucks…) considered. Farmers often site hardiness of the animal as a major concern. Exotics have high feed and care Practices needing attention. requirements that many farmers may have difficulty meeting. Rustic or crossbreds are hardier and can be bred feeding regime for milk specific milk production goals, given the feed and improved AI water supply. Feeding regimes may be more important than disease control genetic potential at this point. Recording system 9 Fourth, once clean milk is “in the can” IT MUST reach a collection center within an hour. The rule is “4 C within 2 hours of milking”. If that is obtained, quality is maintained. ON LABORATORY FACILITIES Milk testing divides into two parts. Cooperatives Affordable lab facilities and dairy technicians First is screening milk as it arrives at a collection point. Most MCCs do a preliminary test or acidity and added water. X X X These screens may get the milk to “an acceptable” level for Dairies work closely with processing. The quickest tests are alcohol and density with a NGOs independent labs(to hydrometer. However, this is not adequate for payment or know/track the status of milk greatly improving quality to the level needed for pasteurized Private laboratory To sensitize farmers on milk quality, to have lab for basic test at cooperative level with support of NGOs and work with private /independent lab for advanced milk tests ?? To support cooperatives to implement small labs and or private people to set up modern labs should improve/increase the capacity to cover the RARDA/Land O’Lakes, Inc./Heifer Int. Thirdly, milk hygiene is important but solvable. Currently, Link between farmer and seller on farm diversification farmers have not incentive to produce “clean” milk. All it really requires is water, soap and a bit of “Jik”. Water is the through MCC major constraint. Although it takes just a few liters to clean Training of farmers on milk and sanitize equipment, it may have to be carried several kilometers. Plus the added expense of soap is not handling compensated. In other words, a farmer who takes the time Promote improved feeding and care to clean equipment and milk in a dry, clean place receives the same price as someone who doesn’t. For the technologies to allow most part, farmers know what to do. They just need a increased milk production reason. even during dry seasons Dairy Sector Working Group Producers Processors Sellers MILK QUALITY ISSUES COMMENTARY quality) or UHT products. Milk testing at the MCC Second is definitive testing for payment. The foundation should be total bacteria counts conducted by a reliable laboratory. Currently, RBS is overpriced and lacks the capacity to handle hundreds of samples needed daily. DQAL, a private lab has set up to handle routine bacteria and component testing at an affordable price. It can also screen for antibiotics and somatic cells. RBS could backstop and assure reasonable accuracy of testing at this level and monitor the system in general. AGENCY RARDA/RBS Carry out testing at sellers level INTERVENTION whole country Look at bringing about reference labs in high production areas 10 Finally, milk grades need to be enforced. This can be accomplished by routine but random testing at the seller level and perhaps other control points along the chain. ON MILK HAULING Milk transportation is in a poor state. Cans are simply loaded Cooperatives on open trucks and trundled to market. Measures made by X X Improve/monitor milk hauling Land O’Lakes indicate that even milk hauled in the cool of the morning has a rise in temperature from 2 C to 20+ C by Farmers Ensuring milk products are To improve production to have economy of scale on transport, and improve quality, to attract private investors Improve hauling at farm level (bicycles, motorcycles…) RARDA/Land O’Lakes, Inc./Heifer Int. Expense can be controlled by finding critical control points that make sense. At present, a bacteria test may cost 2000 RWF. At the farm level that may only have 10-20 liters of milk daily, testing at this level would exceed the value of the milk. However, as milk is consolidated, the cost per liter diminishes. A daily test of a 2000 liter bulk tank would cost 1 RWF per liter. That cost could be diminished with routine random testing of tanks. The major cost is starting up the system where milk could be tested at the can level and farmers separated by class of milk. All this becomes possible with price differentiation. Dairy Sector Working Group Producers Processors Sellers MILK QUALITY ISSUES AGENCY COMMENTARY transported under good the time it reaches market. At that point it may be either Private investors condition of cooled again or boiled. The second cooling takes additional Dairies temperature(from the plant hours. RARDA to the selling outlets) MINICOM The rule should simply be milk cannot rise above 8 C(maybe BRD Good transport facilities 10 C) during transport. Trucks may not need to be refrigerated, but should at least be insulated. The best Use of proper equipment system would be to haul milk in bulk in insulated tanks. Milk along the whole value can be pumped quickly and efficiently at collection centers chain….use of clean into these trucks. Conversely, insulated boxes with cans, aluminum cans, cooling tanks, may work, but need testing. refrigerated trucks etc 11 capacity building X X ON TECHNOLOGY X Improve processing technology (reception, cooling, new quality Self explanatory. Invest in milk hauling trucks To invest in refrigerated trucks To support mobile tanks To support mobile tanks To support with loans to farmers, MCCs and privates, dairies for improving milk hauling RBS RARDA Dairy plants NGOs Cooperatives RNDB RDB Training on new technologies, standards…. Training to Cooperatives Trainings on new technologies, quality assurance… Trainings on different aspects of milk quality Follow up and disseminate updates to their staff Coordination Look for and share/Provide information RDB RNDB RARDA ESADA RBS Provide information, to create linkages, trainings Advocacy and coordination Disseminate information to Dairies, RNDB Disseminate information to Dairies, RNDB On new standards (techniques…) RARDA/Land O’Lakes, Inc./Heifer Int. Improve transporters ability to contain the milk at below 4 degrees centigrade ON CAPACITY BUILDING Updates and constant training is needed at all levels. plant technician capacity building INTERVENTION Dairy Sector Working Group Producers Processors Sellers MILK QUALITY ISSUES products....) COMMENTARY AGENCY INTERVENTION 12 FAO To provide technical support Dairy plants To explore low cost technologies ON SELLERS Stores are but one point in the chain. Milk needs to have a RBS/MINICOM/RARDA Regular Inspection to their milk selling shops, certification consistent cold chain to point of sale. Distributors routinely Work with sellers use simple cargo vans or pickups to deliver milk to stores. MINICOM Collaboration with sellers to link them with Banks, (supermarkets…) to store training of sellers, to support consumers Again, simply apply the rule... not above 8-10 C. That would milk in good quality cooling probably necessity efficient handling at pickup and deliver association (capacity building) facilities plus insulation in between. Dairy plants To support sellers with some equipments as marketing strategy, specify handling details to X X X Seller should have proper The unmentioned portion of the chain is the consumer. customers and provide information cooling facilities and hygienic Current practice necessitates the daily purchase of milk for PSF To oversee sellers group activities environment the household because the vast majority(over 90%) do not Consumers To report cases to MINICOM, to milk sellers have refrigerators or electricity. Even for those who do, the Association association Investment in effective cold cost of electricity is prohibitive. Therefore one should Milk sellers Internal quality control within the association, chains from producer to anticipate the continued market for daily purchases. The Association establish standards/requirements for new start up consumer cost of UHT is prohibitive for households who do not yet milk selling businesses, provide relevant have the means to buy a refrigerator or have electricity. information to members Dairy Sector Working Group Producers Processors Sellers MILK QUALITY RARDA/Land O’Lakes, Inc./Heifer Int. ISSUE ON FARM MILK MARKET market guarantee X COMMENTARY AGENCY Farmers commonly would like a market/price RNDB guarantee. Traditionally, milk prices go up during dry season as supplies dwindle and demand MINICOM/MINAGRI/ increases. Although there is much talk about Consumers/ RNDB agreements to stabilize milk prices between Cooperatives seasons, buyers complain that farmers abrogate these agreements when prices rise and farmers complain that buyers do not purchase all their milk in wet season when demand is less and prices drop. INTERVENTION Coordination/ link stakeholders to allow long term contracts To set minimal prices according to production costs and seasons To seek and initiate business contracts with regular buyers Dairy Sector Working Group Producers Processors Sellers MARKET ISSUES 13 What few surveys exist tend to indicate that both price and demand fluctuations are exaggerated. Prices may vary 50-100 RWF. Observations of milk sales during 10 months of the year (rainy season(s) would indicate even the informal milk market is being met. PROMOTION Use publicity to encourage milk consumption throughout the year. X X X Enhance purchasing power of buyers Educate the youth on milk advantages to install culture of milk consumption deep study/awareness of the Production costs are the highest in the region The market is where information is most lacking. RNDB Consolidating actual sales of milk products by the three processors would be helpful instead of reporting capacity. By most accounts, the market is growing but one must keep that in perspective. MINAGRI/ Plants have been operating at about 10% of their MINEDUC/MoH installed capacity. With new plants coming on line, MINICOM there is over capacity for production of preRCA / Cooperatives packaged milk products. RBS The issue here is on the cost of milk ????? / The MINAGRI Sensitization on the nutritional value of milk , marketing strategy for milk, identify and promote quality selling kiosks, promote milk consumption in nutritional centers School milk program, nutritional centers for demonstration Mass communication Sensitization to farmers on the nutritional value of milk Certification for quality milk selling kiosk Promote feed industry to reduce production RARDA/Land O’Lakes, Inc./Heifer Int. Better reporting of sales would be helpful. ISSUE market(size, demographics...) COMMENTARY habit of not drinking milk is a reality in Rwanda. There no diversity of milk products in Rwanda Improve processors marketing strategies (publicity/bring awareness of the advantages/disadvantages of selling good/substandard milk products respectively...) 14 For example, one cooperative has developed a “hot” chain that delivers effectively pasteurized milk hot to clients who can serve it right out of the can. This eliminates at least one distribution network and packaging while delivering what essentially is a wholesome product of done correctly. School feeding is another area that could be explored for cost effectiveness. Would it be more cost effective for surrounding farmers to deliver milk directly to a school where it could be boiled and served each day as opposed to taking a INTERVENTION costs, and allow increase in consumption RARDA/Land O’Lakes, Inc./Heifer Int. On the other hand, the informal market has the capacity to handle milk in bulk and deliver it to consumers who, in turn, boil it at the point of consumption. The milk sells for half the price of packaged milk, and until the number of consumers explore contract markets and niches with disposable income that permits the purchase Marketing strategy enabling increase in of refrigerators and electricity increases, this milk consumption especially in areas of market will continue to grow at fast pace. production A main concern is how to deliver milk to consumers at a minimal price to serve the largest population. Little work has been done to explore cheaper milk models. Eliminating excess processing in the chain is one way to keep prices down. AGENCY Dairy Sector Working Group Producers Processors Sellers MARKET ISSUES ISSUE COMMENTARY AGENCY INTERVENTION circuitous route through a dairy with redistribution and refrigeration requirements? Finally, anecdotal evidence is building that many children do not have the habit of drinking milk. This provides an opportunity to promote milk or milk based product consumption in children. Affordability will most likely be the key issue. Good question that needs consideration. MINAGRI ON PRODUCTS? X Dairy Sector Working Group Producers Processors Sellers MARKET ISSUES ??? subsidies ??? Why not manufacture low price/affordable products?? X X X ISSUE Provide price incentives Price differentiation (incentives to producers to deliver quality milk) Pricing strategy (cost of production) payment based on quality encourage subsidy cautiously Introduce quality based price differentiation system Harmonization of prices among milk sellers COMMENTARY AGENCY INTERVENTION The most fundamental issue in the dairy chain is milk pricing. Milk pricing has been the prime RCA / To set prices based on quality attributes of milk motivator for production and quality virtually Cooperatives/Processor anywhere in the world. Rwanda current pays by the s/ liter with few controls. As result the milk has been RBS Disseminate milk quality grade to be referred to extremely low in quality not suitable for modern for milk quality based pricing processing. MINICOM Inform the public on milk prices Cooperatives/RNDB/ Collaborate in and advocate milk quality based In several tests, farmers have dramatically improved MINICOM pricing system milk quality when paid differentially for milk of higher and lower class. RARDA/Land O’Lakes, Inc./Heifer Int. Producers Processors Sellers 15 PRICING ISSUES ISSUE COMMENTARY RBS developed standards that are appropriate for today’s milk. COMESA standards could be a goal but unrealistic for most milk produced. AGENCY INTERVENTION Dairy Sector Working Group Producers Processors Sellers MARKET ISSUES 16 The start of a pricing system is the most difficult. First milk needs to be graded and farmers paid according to grade. To start, actual bacteria counts should be used for grading and paying. With DQAL, the means are available. The four grades could be the RBS standards for bacteria... Very Good, Good, Bad, Very Bad. Alcohol, pH, titratable acidity, etc. can still be used for screening on the platform as an accept/reject method. But payment needs more sophisticated counts that can actually categorize the milk. Finally other factors can be added with time, such a somatic cell counts and antibiotic. Cost is the critical factor. Daily testing at the farm level is out of the question for small farms. For large farms producing over 500 liters, it may be feasible. This needs to be worked out. In the case of small farmers, they will need to agree on casting their lot into one consolidated test. As a pricing system begins to take root, the need to RARDA/Land O’Lakes, Inc./Heifer Int. Then payment based on solids rather than volume can help eliminate added water to milk. ISSUE COMMENTARY segregate milk by category is apparent. MCCs will either need to add tanks or designate which will collect a certain grade. AGENCY INTERVENTION Dairy Sector Working Group Producers Processors Sellers MARKET ISSUES Another consideration is what to do with lower grades of milk, and this will most likely make up the bulk of milk produced in the near future. The tradition market can continue to absorb it. However, milk sellers can also start differentiating milk according to grade, and perhaps command higher prices for higher grades. This system needs to be worked out through certification/inspection with RARDA/RBS. 17 RARDA/Land O’Lakes, Inc./Heifer Int. ISSUE CREDIT/FINANCE COMMENTARY All stakeholders in the chain indicate the need for access to credit or financing. Government/banks...subsidize/exonerate At the minimum, people can pool their resources in importation of processing materials, forms of savings groups to make loans the packaging materials, equipment, members. AGENCY INTERVENTION 18 RARDA/Land O’Lakes, Inc./Heifer Int. MINICOM/MINAGRI/ To do advocacy to Banks, farmers collateral funds, MINICOFIN specific farmers loan schemes (development financial products for agriculture) Farmers / Develop proposals based on their needs cooperatives MINAGRI Specific Grants and or fund for dairy subsectors Advocacy (farmers' specific loans) Banks and MFIs need to develop products suitable RCA/ Umurenge To provide financial support to wide range of operations. Collateral SACCO collective savings transitioning to farmers requirements and timeliness of loans is critical in MINAGRI Organize promotion competition for farmers bank agriculture. Loan committees that take months to X X X process a loan is untenable. Invest more in equipment and infrastructure Finally, government or donor intervention may be required where risks are untenable for financial Invest in training on modern institutions or to jump start a new industry. technologies improve/increase working collaboration with institutions such as RARDA, RBS, Donors, Banks…for a continuous updates, advice, technical support, investment increase business development services Probably needed at many levels. MINAGRI Should include it in its projects and trainings RCA/MINICOM Work through cooperatives to improve BDS at X farm and coop level NGOs Increase and improve BDS at all levels of the value chain Dairy Sector Working Group Producers Processors Sellers FINANCE ISSUES organization of cooperatives X AGENCY INTERVENTION Cooperatives tend to be organized more from the RCA top. Efforts could be made to improve not only their managerial capacity but to empower members. Ultimately they are responsible for their own success. Cooperatives Take the lead to build capacity of cooperatives, train on management of resources ( qualified staff- Manager, accountant), organize regular audits in cooperatives To seek experienced and qualified staff for specific task within the cooperative To support cooperatives both technically and in practice(follow up and training) 19 Problem of management NGOs / Local Cooperatives have many responsibilities beyond government their capacity Cooperative law states that committees members are not be paid Cooperative law reformed now tough on funds embezzlement No department within government Although MINAGRI has PADBL, perhaps consideration RARDA/ To follow up dairy issues NA specifically tasked with dairy issues should be given to assigning dairy full time to one RNDB department or individual. licensing system Simple licensing systems could be considered in several RBS/RARDA areas. Districts Simple inspection forms have already been developed RNDB and sector veterinarians trained their use for farms, MCCs and selling points. The system may need finetuning. For example, the inspection interval and certificates could be developed. At the same time, nominal inspection fees could be charged to finance the operation. Not all farms may need inspection. For example, a farm may need inspection only when milk is offered for sale. To provide license to those inspected (or recommended by RNDB) Support in the validation/enforcing of licenses as delivered To register all players in the chain and recommend them to RBS or RARDA for further inspection and licensing SWG 2010 X COMMENTARY Sellers ISSUE Issues and Responsibilities Producers Processors MISCELANEOUS ISSUES A biker may have a requirement to know basic hygiene of cleaning cans and the responsibility to deliver within 2 hours of milking if not refrigerated, or to have the milk below 10 C if outside that window. Issues and Responsibilities Hauling milk is wide open at this point. Milk transport ranges from a jerry can on top of the head to an insulated tanker. Again, the determination on whether or not to inspect someone could be when milk is offered for sale. However, there needs to be flexibility. A person on a bicycle is quite a different story from a truck. Two examples. Trucks , on the other hand, would essentially have similar requirements. Trucks picking up milk from the farms would need to meet the time requirement and transport trucks, the temperature requirement. Again, nominal fees can be charged. 20 The essential ingredient is time and temperature. The ultimate arbiter is the total bacteria count at critical control points along the way that is reflected in the price. For the small hauler delivering direct from farm to customer, a simple license focusing on knowledge of hygiene may be sufficient. Licenses only verify that a basic knowledge to do a given job is mastered through perhaps a SIMPLE exam. SWG 2010 Stakeholder/Agency Stakeholder/Agency Stakeholder/Agency MINAGRI RNDB Rwanda National Dairy Board RMSA Rwanda Milk Sellers Assn RCMC Rwanda Cheese Maker Company RDB Land O’Lakes PSF Private Sector Foundation BRD Send A Cow MINICOM MINALOC MINIFRA RARDA 21 Government Sector RBS Private Sector Heifer International Issues and Responsibilities Listing of potential stakeholders and agencies ABS Techno Serve NGO Sector SNV RCA Cooperatives JICA NUR Banks IFAD WDA Micro Finance EADD UPU AFD ISAE Inyange Dairy ISAR Savannah Dairy SWG 2010 Key Questions and Answers - June 16, 2010 PRODUCERS/ABOROZI KEY QUESTIONS KEY QUESTIONS Questions on quality/ Ibibazo k'ubwiza bw'amata Possible Answers 1 Are there quality standards? If yes, are they known? Standards on farming practices Hari ibipimo by'ubuziranenge ku mata bihari? YES; (RBS standards) 2 Are there incentives for good quality milk? NO; pricing is not based on quality factors other than accept/reject of spoiled or adulterated milk NOT ALL; (There is still a need to reach out) Hari uduhimbazamusyi dutangwa ku mata meza? 3 Do all producers have the technical know how to handle the milk? Baba aborozi bose bafite ubumenyi bwo gutunganya amata? 4 Do they have the knowledge to improve the quality? Do they have the capacity? Ese bafite ubumenyi bwo kongera ubwiza bw'amata? YES and NO; NO is dominant as motivation lacks. 5 What percentage of milk is lost/spoiled? Hangirika/hapfa ubusa amata angana iki? ?? 6 Are collection centers profitable or managed well? 7 Ese amakusanyirizo yaba yunguka?cyangwa aracungwa neza? What is the quality of milk actually produced? Generally, hygiene is lacking and cooling may not be a function of management but engineering. The debt load seems to be high. Ubwiza bw'amata aboneka ubu buhagaze bute? Quality produced is in the 4 categories of the RBS Standards Range - most milk is over 50 million CFU/ml, but no routine testing is conducted for bacteria. Milk is checked for added water and sometimes for acidity. Questions on market supply/Ibibazo birebana n'isoko(kubona amata) 8 Do we have breeds for enough quality milk production? Apparently; milk is turned away in many MCCs during high production season, and the market shows signs of saturation for 300 RWF milk (retail). Ese dufite ubwoko bw'inka butanga amata ahagije? 9 Do producers have means to reach the market? Aborozi bafite uburyo bwo kwigerera kw'isoko ry'amata? 22 NO; Farmers close to markets fare quite well. BUT many are simply too far from a sales point to deliver milk within an hour of milking. More and perhaps smaller collection points may be needed. Direct delivery to sales points is an option near Kigali and other urban centers. Key Questions and Answers - June 16, 2010 10 What percentage of milk consumed by the producers, and what is available to the market? kw'ijanisha, amata anywebwa mu rugo angana iki?ajyanwa kw'isoko angana iki? 11 Do they have the knowledge to increase the quantity? Ese hari ubumenyi bwo kongera ubwiza bw'amata? 12 Do producers have access to quality inputs? Ese aborozi babona ibiryo/imiti.. by'amatungo byiza 13 Do they have the ability to provide milk throughout the year? Observations indicate that about 10 liters of surplus milk is needed to justify joining an MCC. Less than that, it is consumed by the family and friends with occassional local sales. 40%-on farm and 60% to the market Limiting factors of land /feed and access to AI services appear to be more critical than knowledge. Plus vet services and supplies In many cases, no; there is limited access to inputs but affordability and return on inputs is key. A good example is molasses and urea. Most farmers find it profitable to supplement but need a distribution system. YES; Milk production is increasing Aborozi bafite ubushobozi bwo kubona amata umwaka wose? Questions on market demand/Ibibazo birebana no gushaka kw'isoko 14 Do they have enough milk for processing? YES; production is enough, processed products have a limted market Ese amata aboneka arahagije ku isoko? 15 Do they know the status of their milk(in terms of standards and affordability)? Ubwiza bw'amata aboneka ubu buhagaze bute ku bipimo by'ubuziranenge? NOT ALL; (milk testing is recommended for the producers to know their actual status) Questions on organization/ Ibibazo birebana n'imikorere 16 Are all producers in coops?(if no, at what percentage) NO; some are on individual basis Aborozi bose bakorera mu mashyirahamwe/coperative?(niba ataribyo, abazirimo bangana iki ku ijanisha) 17 Do they want to go directly to the market? YES; they prefer it direct than through the transporters/intermediaries Ese aborozi bose bifuza kwigurishiriza amata yabo kw'isoko Questions on finances/ Ibibazo birebana n'ubukungu 18 What is the ease of access to financial services? Ese Kubona amafaranga(imfashanyo/inguzanyo) biraborohera? 19 What do producers need money to do? Amafaranga aborozi bakenera ni ayo kubafasha iki? 23 Financial Institutions are relactant to giving out loans purchase animals improve infrastructure and equipment Key Questions and Answers - June 16, 2010 Issues 1 Infrastructure; Increased number of MCCs small processing plants improved feeder roads farm infrastructures Rural electrification water resources rehabilitation and modernization of MCCs Standards (availability and dissemination) farming practices/ guidelines Providing price incentives Affordable lab facilities and dairy technicians location and improvement of MCCs market guarantee increase the number of processors explore contract markets and niches Marketing strategy enabling increase in milk consumption especially in areas of production organization of cooperatives licensing system investment in effective cold chains from producer to consumer 2 Quality; 3 Market; 4 Pricing; (Fluctuation & Differentiation) Pricing strategy (cost of production) payment based on quality certification for the farming system encourage subsidy cautiously 5 Quantity/ Production > Consumption (On farm loss) feeding regime improved AI disease control Recording system on farm diversification water resource development 6 Financial; (Limited access to finance/high interest rate) Advocacy (farmers' specific loans) collective savings transitioning to farmers bank increase business development services 7 Lack of Capacity capacity building 24 Key Questions and Answers - June 16, 2010 PROCESSORS/INGANDA Questions on quality/ Ibibazo birebana n'ubwiza bw'amata Plausible answers and comments 1 No; (no incentives available to producers to improve quality….) - yes, because it is tested prior to reception(and the best/good quality is the one selected) - No, because not all of them dispose of good milk testing machines; and most of what they receive it is substandard(RBS) Do they get quality milk from producers? Ese inganda zakira amata meza? 2 Do processors have the capacity to produce/sell milk that meets international standards? No; quality processed products come from quality raw milk received Inganda zacu zaba zifite ubushobozi bwo gukora amata yujuje ubuziranenge mpuzamahanga? 3 Do they provide incentives to producers to produce quality milk? No; Ese abanyenganda baha uduhimbazamusyi aborozi kugirango bagere ku mata meza? 4 Do they have standards? Hari ibipimo by'ubuziranenge ku nganda z'amata bihari ? Yes; poor awareness of the standards; 5 What is the actual quality of processed products(how to know that)? Yes; Refer to tests/ studies; use independent labs.. Ubwiza bw'amata(n'ibiyakomokaho) ava mu nganda buhagaze bute?((bumenyekana bute)? 6 Who measures the quality of their milk/cheese...? Ubwiza bw'amata bupimwa na nde? milk buyers/processing plants - but an impartial lab is better to avoid disputes on payment Questions on market supply/Ibibazo birebana n'isoko(kubona amata) 7 Do they get enough milk to process? Amata inganda zakira arahagije ? Yes,(it depends on the market demand, processing capacity-cheese makers) 8 How sustainable is the link between processors and producers? - producers often break agreements to sell on the open market - MCCs often don't buy all milk presented Imikoranire yabanyenganda n'aborozi ihamye cyangwa se ikomeye bingana iki? 9 10 11 Do they have direct access to the producers? Ese inganda zihurira ubwazo n'aborozi? Is milk separated and paid according to its quality/milk grading system? Haba hari uburyo bwo kwishyura amata hagendewe ku bwiza bwayo?kuyashyira mu byiciro by'ubwiza? Do they have their own cows? yes No, milk still being paid by volume(liter) Normally not but some do, selling direct 25 Key Questions and Answers - June 16, 2010 PROCESSORS/INGANDA Questions on quality/ Ibibazo birebana n'ubwiza bw'amata Ese abanyenganda bagira inka zabo? Plausible answers and comments from the farm Questions on market demand/ Ibibazo birebana no gushaka kw'isoko 12 What are the products? Ni ibihe bicuruzwa bikenewe/biri kw'isoko? raw milk, Ikivuguto, Ishyushyu, ghee, processed milk, yoghurts, cheese 13 How can processors expand their market? Ni gute inganda zishobora kwagura isoko ryazo? listen to demand... LOW END but largest segment - Milk at <300 FRW/liter - explore even cheaper prices HIGH END, Niche market (very small, little growth) - making/bringing (demanded or new) quality products; export to neighbouring countries…. 14 What are the different demographic markets? Refer to studies 15 Isoko ry'amata riri mu bihe byiciro (by'abaturage)? Why is there no UHT milk produced in Rwanda? Kuki nta amata ya UHT akorwa mu Rwanda? 16 Why is there so much milk products from Uganda/Kenya...? Kuki hari amata menshi yinjira mu Rwanda ava hanze? highly demanding to process(require good quality raw milk, expensive to process therefore expensive as a product on the market) Is there? Compared to domestic supply, it is a tiny niche. Less than one collection center produces. Lack of means/machines to produce some products(UHT)... Milk products produced in rwanda still expensive??? 17 Do they know what the consumers want? Absolutely. Look at sales. - kiosk sellers vary prices according to seasonal demand (but usually not more than 50 RWF. usually between 200-300 RWF/liter for raw and up to 600 RWF/liter served at a milk bar. - processors vary prices according to calculated price of production, not as demand driven, although sales are stagnant at about 6000 liters per day for all processed product, indicating a small niche. Ese inganda zizi ibyo abakiriya bifuza? 26 Key Questions and Answers - June 16, 2010 PROCESSORS/INGANDA Questions on quality/ Ibibazo birebana n'ubwiza bw'amata Plausible answers and comments 18 Are they processing what is needed/demand driven? Ese inganda zikora ibicuruzwa hifashshijwe icyo isoko ryifuza? Refer to studies 19 Is the production cost competitive ? Compared to what? Processed product will find it hard to compete with direct sales because of energy and packaging. Neither are essential to a vibrant market. Processed, packaged product serves a specific niche of the market. As of two years ago, processing plants operated at less than 10% capacity. Now the total capacitiy is many times that, yet sales are relatively flat. So they are operating at even less of their capacity. Ese igiciro cyo gutunganya amata gituma inganda zishobora kunguka/guhatanira isoko? Questions on organization/ Ibibazo birebana n'imikorere 20 What is their capacity? total of plants capacities - operational plants = 48,000 l/day (Rubarizi, Nyanza, Eastern, Inyange (old plant) - total constructed = 178,000 (+new Inyange, Ruinzi) - cheese plants?3000?? - thousands of milk bars making ikivuguto and pasteurizing milk in bulk Inganda zifite ubushobozi bungana iki bwo gutunganya amata? 21 What is the capacity of them to package? same as processing Inganda zifite ubushobozi bungana iki bwo gupakira amata? 27 Key Questions and Answers - June 16, 2010 PROCESSORS/INGANDA Questions on quality/ Ibibazo birebana n'ubwiza bw'amata Plausible answers and comments 22 Some provide advice, milk containers/cans…. What kind of support do they give the producers? Ese inganda zaba hari uko zifasha/zunganira aborozi?gute? Questions on finances/ Ibibazo birebana n'ubukungu 23 Can processors manage collection centers? most of the MCCs are farmers coop owned; processors can just have agreement with MCCs(farmers) Ese inganda zishobora kuyobora/gucunga amakusanyirizo 24 25 Are the plants profitable, and if so why aren't they operating at capacity? Ese inganda zirunguka?,niba ari byo, kuki zitageza ku bushobozi bwazo bwose mu gutunganya amata? Who determines the price of the processed products? - Not making profit(due to the size of the market, processing technology, purchasing power of the market, poor marketing...) - milk kiosks make money - plants operating under capacity is most likely lack of demand for their product since the milk market is extremely price sensitive - processors for packaged product - customer driven in the milk selling points but lately appears collusion sets prices, not demand Ninde ushyiraho ibiciro by'amata mva ruganda? Plausible Issues Proposed measures Poor quality milk(received&processed) 1. Price differentiation(incentives to producers to deliver quality milk) 2. work closely with independent labs 3. work with producers(trainings…) 4. Work/monitor milk hauling 5. plant technicians capacity building 6. improving processing technology(reception, cooling....) 28 Key Questions and Answers - June 16, 2010 PROCESSORS/INGANDA Questions on quality/ Ibibazo birebana n'ubwiza bw'amata Plausible answers and comments Market (Low profitability) 1. very small size of the market 2. Pricing Vs low purchasing power of the market/population 3. subsidies from governement?? 4. Improve processors marketing strategies 5. deep study/awareness of the market 6. publicity/bring awareness of the advantages/disadvantages of selling good/substandard milk products respectively 7. Subsidise/exonerate importation of processing materials, machines,.. Milk products transportation and storage 1. Work/suggest with farmers/MCCs to haul milk under good condition of temperature and time(cooling track…) 2. Ensuring milk products are transported under good condition of temperature(from the plant to the selling outlets) 3. Work with sellers(supermarkets…) to store milk in good quailty cooling facilities 1. improve/increase working collaboration with institutions such as RARDA, RBS, Donors, Banks…for a continous updade, advice, technical support, investment Partneship with other dairy stakeholders through RNDB 29 Key Questions and Answers - June 16, 2010 SELLERS/ ABACURUZI B'AMATA Questions Plausible Answers quality/ Ibibazo birebana n'ubwiza bw'amata 1 Do sellers have the knowledge about milk quality standards? Baba abacuruzi bafite ubumenyi ku birebana n'ibipimo by'ubuziranenge bw'amata? 2 Do they have technical know how for milk handling? Bafite ubumenyi bukwiye mu gutunganya/kubika amata? 3 4 5 What quality controls exist between the sellers and consumers? Ni iki gikorwa mu kugenzura ubwiza bw'amata hagati y'abacuruzi n'abakiriya/abanywi b'amata? What are the criteria of milk reception? Ni iki kigenderwaho mu kwakira amata? Are they selling standard milk? Ese hacuruzwa amata yujuje ubuziranenge? 6 What kind of shelf life of the milk sold? Ese amata acuruzwa aba ashobora kumara igihe kingana iki? 7 What type of inspection service is there? Hakorwa ubuhe bugenzuzi/Inspection? 8 No. There is a need to make milk sellers aware of RBS milk standards. Simple, regular inspection can play a role. Some sellers conduct basic milk tests acidity and added water. Some. There is a need to make milk sellers aware of RARDA inspection sheet guidelines which provide all requirement for milk handling Need to show and tell people on hygiene need to define and follow up quality No control. Usually density is checked for added water. Some do alcohol, clot on boiling NO. Not aware of that. But according to Consumer survey conducted by Land O'lakes most of milk sold on market is in 4th category (very bad milk) - bacteria standards would be good but they don't know them. About 2 days. As most of milk bought is in very bad category thus the shelf life of milk is very short. However, strategies of fermenting milk from ishushyu to ikivuguto can give up 4 days. Ghee is long life, and cheese depends on type. RBS and City Council Inspection RARDA has the capacity to conduct farm, MCC and kiosk inspections and collaborates with Kigali City and MoH Presence of refridgerator, running water, aprons, health certificate, proper floor, insect repellant or killer Tiles and toilets far from facility What are the minimum requirements to sell milk? Ni ibiki bisabwa nibura kugira ngo umuntu acuruze amata? Questions on market supply/Ibibazo birebana n'isoko(kubona amata) 9 Where do they get their milk from/traceability? 30 From dealers who get milk from MCC and farmers Key Questions and Answers - June 16, 2010 SELLERS/ ABACURUZI B'AMATA Questions Plausible Answers Amata acuruzwa aturutse he?hari uburyo bwo kuhakurikirana? 10 Do they get enough milk? is it at the right time? Ese abacuruzi bakira amata ahagije? Ku gihe gikwiye? 11 Do they have direct access to producers, and what is the relationship between them? During high production periods the market is satisified at current prices. Dry season sales actually increase as do prices, indicating a slightly higher demand. Processors experience shortages as sales shift to direct sales from many farms. In very few cases yes; It is more a matter of organization. Small kiosks normally would have less contact and receive deliveries from a trusted hauler. Hagati y'abacuruzi b'amata?( Ese abacuruzi bagera ku borozi my buryo butaziguye? Imikoranire iteye ite? Questions on market demand/Ibibazo birebana no gushaka kw'isoko 13 What do they want to sell? Hakwiye gucuruzwa iki? Both fresh and processed milk of good quality 14 Do they have enough capacity to sell? Yes Ese abacuruzi bafite ubushobozi buhagije bwo gucuruza amata? 15 Is the pricing consumer or supplier driven? Ese ibiciro bigendera ku gushaka kw'abaranguza amata cyangwa abanywi bayo? 16 Is the marketing strategy consumer or supplier driven? Ese imicururize y'amata igendera ku gushaka kw'abaranguza cyangwa abanywi b'amata? 17 Who buys what(demographics..)? Amata agurwa na nde(mu nzego z'abaturage…) 18 Do they have products in different quality/prices? Ese amata acuruzwa ku biciro bijyanye n'ubwiza afite? Questions on organization/Ibibazo bijyanye n'imikorere 19 Do they have appropriate cooling/storage facilities? Ese abacuruzi bafite ibyuma byo kubikamo amata bikonjesha byabugenewe? Pricing is supply driven. Prices are more a function of manufacturing costs than market forces in the commercial plants. Neither. When the market is over-supplied, prices are level. When milk supplies are lower, the informal market responds and more milk is attracted. However, the marketing strategy should be developed Buyers who consume; take home and some buy to sell. Several consumer studies yield inconclusive results. There is a need of reliable demographic information breaking the population down by income. NO Some have but most equipment needs to be replaced. Inspection will catch up with them 31 Key Questions and Answers - June 16, 2010 SELLERS/ ABACURUZI B'AMATA Questions Plausible Answers 20 Why is milk sold in bulk as opposed in packages? Kuki amata acuruzwa nk'amasukano kurusha mu ma karito? Do they get complaints from the consumers? Ese hari ibyifuzo abacuruzi bajya bakira biva ma bakiliya? It's according to purchasing power of consumers. Packaging adds to the price of milk Most likely. What is the status of milk hauling in Rwanda? Hauling does not comply with RARDA guidelines. Refer to inspection sheet at MCC. Under current conditions, cans are bent and rarely sanitized. Perhaps washed. 21 22 Ubwikorezi bw'amata mu Rwanda bwifashe bute? Questions on finances/Ibibazo birebana n'ubukungu 23 # 1 Can sellers upgrade facilities to meet RBS standards? Ese abacuruzi bashobora gutunganya imikorere/ibikoresho byabo kugira ngo bubahirize ibipimo by'ubuziranenge bya RBS? MILK SELLERS GROUP Key Issues Quality Yes but need finance and awareness on standards. Upgrading facilities to meet standards requires much investment (equipments, infrastructure, ….) They can move gradually to meet required standards POSSIBLE SOLUTIONS Link between farmer and seller through MCC—— Good transport facilities Seller should have proper cooling facilities and hygienic environment Milk testing at the MCC Training of farmers on milk handling Emphasis on high milk quality standards and implement/use of a price incentives to promote obtention of good quality milk Carry out testing at sellers level 2 Use of proper equipment along the whole value chain….use of clean alluminum cans, cooling tanks, refrigerated trucks e.t.c Emphasis on health standards for all milk handlers along the value chain Improve road infrastructure, and electricity supply Promote improved feeding technologies to allow increased milk production even MARKET SUPPLY ISSUES 32 Key Questions and Answers - # 3 June 16, 2010 MILK SELLERS GROUP Key Issues POSSIBLE SOLUTIONS during dry seasons Increase number of cooling facilities and capacity to cool milk at below 10degrees centigrade Improve transporters ability to contain the milk at below 10degrees centigrade Harmonization of prices among milk sellers MARKET DEMAND ISSUES Enhance purchasing power of buyers 4 INVESTMENT ISSUES 5 PRICING ISSUES Use publicity to encourage milk consumption throughout the year. Educate the youth on milk advantages to instill culture of milk consumption Invest more in equipment and infrastructure Invest in training on modern technologies Introduce quality based price differentiation system 33 Participant List ANNEX Rwanda Dairy working group meeting 21/04/2010 Co Chairs RARDA – Theogene Rutagwenda Land O’Lakes – Roger Steinkamp Heifer International – Charles Kayumba Land O’Lakes Facilitators: Vincent KALIMBA Willy NYIRIGIRA Charles BIZIMANA Attendance list # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Name Dr. Innocent Matabishi Betty Rwamuhizi Bigirimana Jean Damascène Kayisanabo Fina Karamuzi Dennis Nick Buckley Zephanie Niyonkuru Dr Ngarambe Michel Frank de laat Chris van Zastraw Ndahiro M. Emmanuel Bazigaga Odile Karangwa Frederick Lowe Alexandra Karenga John Organization SNV-Rwanda EADD Rwanda RMSA USAID Heifer Rwanda OTF group OTF group RARDA Dutch embassy Starbucks FSC RNDB RNDB RNDB MINAGRI Inyange Email jmatabishi@snvworld.org Ebetty2020@yahoo.com bijdamas@yahoo.fr fkayisanabo@usaid.gov dkaramuzi@gmail.com nbuckley@otfgroup.com zniyonkuru@otfgroup.com Ngarambemic2000@yahoo.fr Frank-de.laat@minbuza.nl cvonzast@starbucks.com ndahiroemmanuel@yahoo.com Kfreddy2002@yahoo.com a.lowe.minagri@gmail.com karengajohn@yahoo.com 34 Telephone number 0788309056 0788309038 0788652698 0788304369 0788305014 0788304330 0788508082 0788301828 0788442233 0788766960 0788222111 0783852702 0788309485 Participant List ANNEX 2nd DSWG meeting participants 16 June 2010 Co-chairs RARDA – Theogene Rutagwenda Land O’Lakes – Roger Steinkamp Heifer International – Charles Kayumba Land O’Lakes Facilitators: Vincent KALIMBA Willy NYIRIGIRA Charles BIZIMANA Name NSENGIYUMVA Jeremiah RUTAGWENDA Theogene NGARAMBE Michel Innocent MATABISHI UWERA Agnes KAGARAMA Juvenal Fina Kayisanabo Nyanza Dairy Rubilizi Dairy V/P TWAGIRAMUNGU Danny P : NGAMIJE FRANCOIS V/P : BIGIRIMANA DAMASCENE Hadgi Said HAVUGIMANA NGABIRE BERICK KARANGWA FREDERICK Ngendo Alphonse Ndahiro Emmanuel Mbare MCC Isabelle Jardon Frank de Laas Nigaba Eric Wibabara Angelique Ndayambaje E Simon Anyona Dr Frank MBUZA GAHIGA Nsabiyumva Diomede BAZIGAGA Odile Organization Syndicat Agricole du RWANDA RARDA RARDA SNV TNS Umutara Poloytechnique USAID Processing plants Processing plants Cheese makers Milk sellers email Phone staverorg@yahoo.fr rutagwendat2006@yahoo.com ngarambemic2000@yahoo.fr jmatabishi@snvworld.org uwera@tnsrwanda.org.rw 0788420647 0788 30 33 09 0788 50 80 82 0788 30 90 56 0788 52 27 99 philip@brierley.org fkayisanabo@usaid.gov twagiraemery@yahoo.fr rubilizidairy@yahoo.fr dannysoni3@yahoo.fr ngamijef@yahoo.fr 0788 85 28 50 0725 46 20 07 0788 53 66 57 078 68 98 32 Milk sellers Milk sellers Milk sellers Milk sellers Producers Producers MCC FAORW / VNU Netherlands Embassy RBS RBS SACR SNV Rwanda MUTARA Polytechnic RNDB RNDB RNDB bijdamas@yahoo.fr 0788 86 52 69 0788 59 69 36 ingabirich@yahoo.fr 0788 49 49 26 kfreddy2002@yahoo.com 0788 22 21 11 0788 67 56 65 ndahiroemmanuel@yahoo.com 0788 44 22 33 augumutngama@yahoo.com 0788 59 53 91 Isabelle.Jardon@fao.org 078-313 40 35 frank-de-laat@minbuza.nl nigeric@yahoo.fr 0788 30 36 09 wibabarange@yahoo.fr ndayambajeegene@yahoo.fr 0788 43 04 05 sanyina@codit.org 254,723,793,542 mbyzaooo@yahoo.com 0788 83 15 91 0788 77 43 00 0788 55 80 16 0788 76 69 60 35 Participant List ANNEX 3d DSWG meeting participants 17 August 2010 Co-chairs RARDA – NGARAMBE Michel Land O’Lakes – Roger Steinkamp Heifer International – Charles Kayumba Land O’Lakes Facilitators: Vincent KALIMBA Willy NYIRIGIRA Charles BIZIMANA # Name 1 Innocent Matabishi 2 Erik 3 Froduald Munyankiko 4 Ndavi Muia 5 Steve Dildine 6 7 8 9 Alexandra Lowe Isabelle Jardon Gahima Manasseh Nigaba Eric 10 Mutera Augustin 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Turatsinze James David Mupenzi Alex Dativa Gahiga Gashumba Boniface Leonard Mugenzi Alphonse Ngendo Frederick Karangwa Emmanuel Ndahiro Odile Bazigaga Francois Ngamije Jean Damascene Bigirimana Dany Twagiramungu Emmanuel Kageruka Innocent Karuranga Musabyeyezu DR. Clarisse Ingabire Dr. Michel Ngarambe Aimable Ntukanyagwe Dr. Charles KAYUMBA Organization SNV SNV Send a Cow Rwanda EADD/TNS TNS MINAGRI planning FAO Gahini Diocese RBS Mbare MCC president Rwabiharamba MCC president DQAL Ntebbe Farm MINICOM RNDB RNDB RNDB RNDB RNDB RNDB RNDB RMSA RMSA RCMC RCMC RCMC STAVER MINAGRI RARDA IFAD HPI email jmatabishi@snvworld.org ewaveren@snvwold.org froduald.munyankiko@ sendacowrwanda.org.rw ndavi@tnsrwanda.org.rw steven.dildine@gmail.com Phone 0788309056 0788301537 0788301425 0783852702 a.lowe.minagri@gmail.com Isabelle.Jardon@fao.org gahima7@yahoo.com nigeric@yahoo.fr 0783134035 0788308313 0788303609 0788593341 augumutunganwa@yahoo.com 0788531437 dqalservices@gmail.com newsixela@yahoo.fr dativniyonzima@yahoo.fr bonifacetwahirwa@yahoo.com kfreddy2002@yahoo.com ndahiroemmanuel@yahoo.com ikaranga@yahoo.fr bijoamas@yahoo.fr dannysoni3@yahoo.fr ikaranga@yahoo.fr musadio@yahoo.fr claring14@yahoo.fr ngarambemic2000@yahoo.fr a.ntukanyagwe@ifad.org charles.kayumba@gmail.com 36 0788693272 0788300204 0788553152 0788831591 0788303914 0788858303 0788675665 0788222111 0788442233 0788766960 0788689832 0788652698 0788536697 0788465258 0788522785 788472168 788978173 788505082 788389898 788302803 Participant List ANNEX 37