SEEP Annual Conference 2015 Inclusion and Resilience: The Next Challenge Leveraging Partnerships around Disruptive Technologies to Generate Systemic Change Introducing Digital Fat Testing Technology into the Dairy Market System in Bangladesh
Jan 17, 2016
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Leveraging Partnerships around Disruptive
Technologies to Generate Systemic Change
Introducing Digital Fat Testing Technology into the Dairy Market
System in Bangladesh
Background
• Strengthening the Dairy Value Chain (SDVC) Project Phase II– funded by the Bill and Melinda Gates Foundation
• Gendered Value Chain Approach to generate systemic change– Generate price incentives for investment in
improving productivity– Increase transparency in the dairy market system– Increase participation/rewards for women
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
“Dairy Hub” Model
• Integrated model– Digital Fat Testing Technology at Collection Centers– Input Supply– Producer collectives– Savings and credit
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
• Introduce DFT• CARE’s Perspective
– Nurul Amin Siddiquee• BRAC Dairy’s Perspective
– Taufiqur Rahman Mollick• Management Research Perspective
– Dr. Kevin McKague; Cape Breton University• Interactive Q&A
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Outline for the Session
Introducing the DFT
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
What the cows told us:A resilient business case for empowering producers
Nurul Siddiquee, Technical Adviser, CARE USA
SEEP network 2015
SDVC
Goal: Empowering smallholder dairy farmers in northwest Bangladesh addressing the major challenges to improving smallholder participation in the value chain
Targeted Beneficiaries: 50,000 smallholder dairy farmers and thousands of VC actors and service providers
The dairy value chain in Bangladesh: weak, informal and fragmented
What does this mean for business like BRAC dairy?
Tangible Benefits Intangible Benefits
Growth Reduced risk and uncertainty
Improved quality of goods
Transparency
Aggregation of demand, reduced distribution costs, production efficiency confronting shocks
Product and service innovation
Access to resources Social legitimacy
Partnering with BRAC
• Promoting system change that generate incentives for women dairy farmers to invest in improved dairy practices targeting the formal market
• Scaling up DFT to 33% of BRAC Dairy’s supply chain by 2016
• Using the business case to encourage other actors of the chain investment in the larger dairy pocket area of the country
The business case for empowering women
Photo Credit: Dave Bradley:
What the cows told us:
Investments in women’s empowerment DO pay off in tangible and intangible ways By empowering women farmers CARE’s work was able to:
• Improve milk quality by 30%;• Increase milk delivery by up to
500%; and• Reduce value chain risk and cost
of aggregation while improving transparency and innovation
• Improved resilience to recurrent flood related shocks in the project districts
Also, women’s dairy-related income increased by more than 100%.
Impact
Challenges:
•Promoting “Systemic change” that involves significant investments in technology and resources • Slow Progress in structural changes around the sector
Thank You!
Unless otherwise cited, all photos are copyright CARE International
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Digital Fat Testing SystemStatus Report
DFT Objectives
• Improve the milk collection system in rural and remote areas
• Increase production with improving access to inputs, markets, and services by mobilizing groups of poor producers and input service provider.
• Improve the breeding and artificial insemination network
• Ensure access to quality animal health services at the producer level
General Collection Model
Collection point
(1000)
Producer
Producer
ProducerProducer
ProducerCollection
point (1000)
Producer
Producer
ProducerProducer
Producer
Collection point
(1000)
Producer
Producer
ProducerProducer
Producer
Chilling (5000-
15000 ltr)
Collection point
(1000)
Producer
Producer
ProducerProducer
Producer
DFT CollectionModel
Chilling5000 to
15000 liters
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
Chilling5000 to
15000 liters
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
Chilling5000 to
15000 liters
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
DFT Collection
Point (~350l)
Chilling (5000-
15000 ltr)
DFT Collection Impact
• Community level collection points, decreases transportation time and cost
• DFT (digital fat testing) systems enable variable pricing of milk based on fat content. This ensures:– Fair price for producers– High quality of milk
collected
DFT Points and Producers
2012 2013 20140
5
10
15
20
25
30
35
40
45
50
0
500
1000
1500
2000
2500
DFT Points Producers Served
Prod
ucer
s En
gage
d
DFT Milk Collection and Fat Content
2012 2013 20140
2000
4000
6000
8000
10000
12000
14000
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Averge Fat %Milk Collected
Year
Milk
Col
lecti
on (l
iter
s)
% F
at
Role of CARE
• DFT machine provider • Krishi Utsho: One stop shop at DFT
point for farmer inputs• Technical training for DFT operators• Farm management, farmer health
and animal husbandry training and monitoring
• Mobilizing farmer groups• Policy advocacy
INNOVATION AND SCALING UP
Benefits of AMCU
AMCU
• Ultrasonic Milk Analyzer with Stirrer for Fat%, SNF%, Added Water, Temperature, etc. tests
• Combined reading from Milk Analyzer and Weighing Scale (No manual entry)
• Multi-Tier Software based operation• ERP with Integrated Support like AI, Vet,
fodder, Vaccine, etc.• More than 17 different types of Reports• With GPRS connectivity to the main server• Built-in camera• High Security• Basic software knowledge of the Operator
is sufficient
Milkotester
• Semi-Automatic• Tests for Fat and SNF only• No integration possible with the
software• High dependency on Operator’s
skill
Leveraging Partnerships Around Disruptive Technologies for Systems Change
Introducing Digital Fat Testing: Management Research Perspective
Dr. Kevin McKague, MBA, PhDAssistant Professor of Entrepreneurship and Strategy
Shannon School of Business, Cape Breton University, Canada
SEEP ConferenceSeptember 30, 2015
About the Research
• CARE’s Strengthening the Dairy Value Chain Project in Bangladesh– Focus of my PhD dissertation, 2008-
2014
– With Muhammad Siddiquee, published lessons learned in Making Markets More Inclusive (Palgrave, 2014)
Research Questions
Context: There are many pressures to introduce new pro-poor technologies – lots of ICT out there
Key Questions:•How can new disruptive technologies be introduced in commercially viable ways?•How do we work with companies to incorporate new technologies into their core business activities to deliver a pro-poor impact?
Answer
Pro-poor technology +
business case =
potentially scalable and sustainable impact
What is a pro-poor technology?
One that: • Increases productivity• Increases information (transparency)• Rebalances power relationships• Reduces riskFor poor producers
Source: McKague and Oliver (2012) Enhanced Market Practices: Poverty Alleviation for Poor Producers in Developing Countries
What is the business case?
The technology has to help the company’s business.
Process for business case discovery:•Understand what company’s business needs are•Understand how a technology can help them•Look for mutual benefit for companies and poor producers
Source: McKague and Siddiquee (2014) Making Markets More Inclusive
What is the business case?Business Benefits and Motivations:
Benefits for Companies Sourcing from Poor Producers
• Growth• Quality• Reduced risk and uncertainty• Reduced costs• Transparency• Innovation
Benefits for Companies Selling to Poor Consumers
• Aggregation of demand• Reduced distribution costs• Product and service
innovation
Cross-Cutting Benefits• Access to resources• Social legitimacy
Thank you!
Kevin McKague [email protected]
Shannon School of Business, Cape Breton University, Canada