Dairy Hub AAAP Seminar Bangkok Nov 29, 2012 2012-11-29
Agenda ► Background ► Dairy Hub defined & why Dairy Hubs ► Dairy Hubs step by step approach ► Dairy Hub economics ► Measured achievements in Bangladesh & next steps 2012-11-29
Dairy Hub in Bangladesh Background ► Tetra Pak customers have been struggling with access to raw milk since the launch of packaged milk in 2005 − Inconsistent Quality − Fluctuations in supply ► PRAN took on the initiative to secure Raw Milk jointly with FfDO convinced from the Success of pilot project with Small Holder Dairy Farmers ( collaboration between PRAN, FfDO, & CARE ..an NGO ) in improving milking productivity ► PRAN decided to adopt the Pakistan Dairy Hub model after evaluating of practices in Australia, New Zealand, USA, Israel, India, & Pakistan 2012-11-29
Dairy Hub Defined ► This is a one-herd concept that encompasses small- holder farmers from 20-30 villages within 20 – 25 kilometres radius ► Concentrated and focused services to small holders to make dairy farming more profitable ► It aims to educate & empower the dairy farmers by providing them training advice and veterinary services (services are provided free or at cost) ► All activities are recorded at farm level ► Managed and owned by a private processor 2012-11-29
Why Dairy Hubs? ► Fierce competition for the processors by small dairies and city buyers ► Adulteration / Fabrication of milk ► Lack of frequent agricultural-services related to modern dairy techniques ► Communication gap (Farmer and processor) ► Lack of skills in Modern Dairy Farming and Training of farmers 2012-11-29
These issues have some implications………. ► Low milk yield per animal ► Low milk density / square kilometre ► High collection cost per litre of milk ► Low quality of milk (TBC) ► Demand supply gap and no farmer loyalty ► Seasonality 2012-11-29
Dairy Hub – Solution for Sustainability ► Managed by dedicated dairy processor Long term relationship and loyalty building Dairy / Processor Dairy Hub 15 to 25 KMS Quality control Producer / small farmer Village Milk collection point One herd concept 2012-11-29
Dairy Hub step-by-step approach ► Profitability 1 Nutrition Management Management of transition and fresh cows close to calving (step-up feeding) Feeding managent to optimize the true genetic potential of the cows Calf management 2012-11-29
Dairy Hub step-by-step approach ► Profitability 1 Nutrition Management Cows Register the individual cows’ production every fortnight by an extension officer Create proper feeding practises around calving Create feed rations with best available fodder and concetrates to optimize milk production Convince farmers to go to zero grazing Create proper additional feeding plans for farmers who persists with grazing their cows 2012-11-29
Dairy Hub step-by-step approach ► Profitability 1 Nutrition Management Young Stock Calf management to develop the calves into fast growing young stock Feeding management to create a proper growth and development of the digestion system Feeding management of the heifers to give adequate growth for optimal calving age Register the weight gain of the young stock every month 2012-11-29
Feeding management economy ► Feed shall not be viewed as a cost only, it shall be viewed as an “investment” as well ► It is not possible to get more production out of a cow than the input ► The cost per kg feed is important to consider, but the concentration of nutrients in each kg feed has to be considered as well ► Always calculate the feed cost per kg milk as the most important measure in feeding management economy ► Current milk price is BDT 40 ≈ 50 US Cents, this price level is at higher level in comparison to the other countries in the region ► Actual production cost will be assessed but with the current milk price the dairy farmer will be profitable 2012-11-29
Dairy Hub step-by-step approach ► Milk Quality 2 Training on high quality milk production (hygiene around milking, clean buckets, fast delivery, etc) Introduction of hygiene packages (detergents, brushes, teat dip, milk cups, CMT, etc) Introduction of mechanized milking equipment on selected farms 2012-11-29
Hygiene aspects to prevent bacteria development 2012-11-29
Dairy Hub step-by-step approach ► Animal health 3 Register all activities performed by vet service, AI, etc on the farms. Herd/cow card (AI, vaccination, de-worming, treatments, etc.) 2012-11-29
Dairy Hub Economics: Main Investment Items: • Cooling tanks – 20 VCC & Main cooling facility • Generators • Motor Bikes • Lab Equipment & Office Facilities i.e. computers • Milk Tankers – Transport • Electricity Installations Total USD 945,000 2012-11-29
Dairy Hub Economics Main Operational Cost Items: • Staff & Personnel • Repair & Maintenance • Fuel – Electricity, Trucks & Motor Bikes • Financial Depreciation (20%) • Financial Interest (20%) Total USD 585,000 per annum or 48,400 per month Sufficient throughput of daily milk through the dairy hub needs to be achieved to ensure sustainability 2012-11-29
Dairy HUB Location - Bangladesh VMCC Chatmohar, Pabna located in the northern part of Bangladesh, Distance from Dhaka: 235 km 2012-11-29
Key Success Factors Win-Win for both PRAN & Dairy Farmers Dairy Hub Productivity ► Collection Cost competitive to Traditional Collections System ► 71% increase in collection − 361,000 L (Sept 2011) 619,000 L (Sept 2012), (Peak 849,000 L, Feb) ► Milk Quality − 35% reduction in Total Plate Count − 14% reduction in Somatic Cell Count Farmers’ Profitability ► 37% Increase in Yield (5.8 7.9 L/Cow/ Day) ► 33% increase in income (1023 farmers) − $100 $133/Farmers/Month 2012-11-29
Month wise collection from start PRAN Dairy Hub, Chatmohor, Pabna. Month wise Milk Collection (Thousand Ltrs) 900 800 700 600 500 400 300 200 100 0 Qnty Thousand liters 2012-11-29
Impacts and Benefits ► Farmers - Access to the market - Increased income - Investment opportunities - Job opportunities ► Processor - Profitable Dairy Business - Employment of high qualified staff ► Society - Access to high quality and safe domestic Dairy products 2012-11-29
Accelerate Dairy Hub Ramp Up ► PRAN Planning 2013 until 2016 − Establish a Dairy Academy for training of staff and other people interested to work in the Dairy sector − Establish an additional 3 Dairy Hubs (a total of 5) − Optimize the total collection per HUB (each HUB has initially a capacity of 30,000 L/day, but can easily expand to 50,000 L/day) − Encourage farmers to invest and develop their Dairy business 2012-11-29
2012-11-29 Traditional Farms
2012-11-29 New investments
2012-11-29 Village Milk Collection Center
2012-11-29 Local Transports
2012-11-29 Local Transports
2012-11-29 Chatmohar HUB
2012-11-29 Chatmohar HUB
2012-11-29 Milk delivered from the VMC
2012-11-29 Laboratory
2012-11-29 Milk Quality Tests
2012-11-29 Pouring into the pump cistern
2012-11-29 Pouring into the pump cistern
2012-11-29 Modern Transport Trucks
High Quality and Safe Products
Questions & Thank You 2012-11-29
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