Selected smallholder dairying experiences from Bangladesh and Mongolia
Two smallholder dairy development projects have been recently completed in Bangladesh and Mongolia. The two country's models are developed and adapted to produce quality milk from local resources, and at affordable prices for urban consumers.
The model links producers to processors through six flexible modules and they include,
1) Milk producer organisations
2) Dairy service centres
3) Milk collection units
4) Milk cooling centres
5) Milk processing units
6) Milk sales centres
While the basic model centres on liquid milk, the model is adapted for primary processing on the steppe for conservation and reduced transport costs.
The Mongolian models are also supported by innovative marketing and capacity building features, and they are also mainstreamed into the 10-year National Dairy Programme for the period 2007-2016.
Initial results are encouraging and by the end of 2007, sixteen commercial units are in operation. About US$1.3 million were invested in equipment and buildings and quantity of domestic milk entering the 2007 formal market reached 16 million litres.
Set up with support from FAO, UNDP and DANIDA, the Bangladesh Milk Producers' Cooperative Union Limited (Milk Vita) today collects milk from over 150,000 smallholder milk producers through a network of 1,200 village cooperatives.
The Grameen CLDDP model is a profitable dairy chain model that is part of an integrated, community-owned crop-fish-livestock farming system. Following training and build-up of savings, village group members (VGM) have access to commercial loans for livestock and other income generating activities.
The VGM-smallholder milk producers own 70 percent of the community feed mills and dairy enterprises, with Grameen owning the other 30 percent, therefore they share the profits of the enterprises.
Benefits for smallholders include,
2) Higher earnings
3) Household accumulation of physical assets
The model is adapted and scaled up across the country and in Nepal.
The article also mentions the background and history of the two countries' dairy industry, school milk programmes and the scaling up of the models.
For more of the article, please click here
Article made possible through the contribution of Food and Agriculture Organisation of the United Nations.