Stimulating Growth of Less Developed Dairy Industries –use of Jerseys

Background Second-largest farmer-owned agricultural cooperative in the U.S. with $14 billion in annual sales in 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. Ranks first in livestock feed and animal milk replacers in the U.S. Part of Corporate Social Responsibility Arm. Operates like a not-for- profit. Over 30 year history.

-Since 1981, we have implemented 260+ projects in 75 countries -Currently implementing 30 projects in 17 countries, mainly in Africa and Asia Where We Work

 Opportunity  Nutrition  Diversification  Cash flow  Urban – Rural  Jobs  Veg matter into Milk, Meat and MANURE Why Dairy Dev ?

 Approaches  Results  Best Practices  Key Innovations & Takeaways  Why Jersey ? Pro Farm Business Approach

Identifying Needs & Opportunities-Mapping Major Road Path Transaction Point Potential Customer Existing Customer TDDP Producer Groups TDDP Potential Producer Groups KEY Competition Business

Milk Collection Centre Approach Reduce transaction costs - Farmer Group Milk Production Testing, Bulking, Chilling Transport Processing & Packaging Transportation and Retail Milk Collection Centers Processing plants Supermarkets/Kiosks Outputs markets/Services: 1.Business management 2.Transportation 3.Quality Control- Testing 4.Extension support 5.Training 1.Farm Business management 2.Input supplies 3.Financial Services 4.Extension, Services CLWS 5.Training Programs Input markets/Services: SERVICES FLOW : Input/Output Transportation and Retail

-Dairy Value Chain Development project -Zambia 2% formal Milk to 30 % -5,000 farms -$5.5 million/year – Zimbabwe – 748% increase in Farm Incomes - 100% Repayment on loans Results

Best Practice: Inclusion of Financial Opportunities Business focus, Pvt sector -Innovative financial models to rebuild capital -Financial literacy, graduation -Achievable terms -No hand-outs -Cost/ benefit -Link Pvt sector-

Key Take away : Diversity of Financing MCC Cattle Bank Facility Micro King Finance (Private) Ltd. VSL

Key Take away: Business Model -Building business confidence  Takes time  Importance of trust between the farmers, milk bulking centers and milk processors  MCC’s without business acumen struggle with interpreting analysis -Overcoming handouts  Takes time but is possible  Managing expectations with pro-business approach -Individual ownership of assets  Avoid communal ownership  Individual investment, no donation  Financing to support individual owners

Which Breed -90% of Breed in the feed

Right cow for Profit = Match Fodder Resources Type - Example Mature Size Milk Yield Fodder LOW Fodder Medium Fodder High Indigi SmallLow Jersey X SmallMediumExcellen t Jersey PSmallHigh G RD H X Medium FairGood Gu RD PMediumHighRisky Host PuLargeHighDangerHigh Risk

Jersey Breed of choice? -Easy Calving -Bomb proof -Heat Resistance  Smooth coat  High components  High Feed to milk -Fertility -Size -Temperament -Type -Longevity

Example from Mixed Commercial Herd in Zambia

Jersey Next Steps ? -Promotion -Stabilized Cross ? -Milk/Longevity -Cost/Ben -Availability AI -Milk Pricing

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