Proceedings of the Workshop on the Regional Exchange Network for Market Oriented Dairy Development
	TABLE OF CONTENTS

Held at
Bronte Hotel, Harare, Zimbabwe 4-8 December 1995

Compiled and edited by
Margaret Matanda
Lecturer in Agribusiness Management and Food Marketing
University of Zambia

Organized by
Dairy Services (DRSS) Zimbabwe in conjunction with the Department of Agricultural Economics (University of Zimbabwe),
Dairy Development Programme, ARDA (Zimbabwe) and Zimbabwe Dairy Herd Improvement Association (ZDHIA)

Sponsored by
FAO Animal Production and Health Division
Meat and Dairy Service
Dairy Group
Rome, Italy

Zimbabwe Dairy Herd Improvement Association
P.O. Box CY 2026 Causeway, Harare
Tel.: 729177-Fax: 728317

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Information Division, Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy.

Foreword

The changes in the economies of most Sub-Saharan Africa resulting from the introduction of Economic Structural Adjustment Programmes makes it imperative for agricultural producers, processors, scientists, agricultural economists, policy makers, etc to review the efficiency of production systems they are involved in.

There is need to increase efficiency of the food chain to cater for the continued increase in demand for food, resulting from the tremendous growth in urban population.

Increase in milk production at affordable prices was identified as one of the major objectives of the dairy sector at an FAO sponsored seminar on ‘Dairy Development Policies and Implementation Sharing of Experiences between Asia and Africa’ held (in Harare, Zimbabwe) in July, 1993. Concurrently, the importance of adopting market-led and demand driven strategies was viewed as crucial for the sucess of dairy development countries.

The establishment of a Dairy Network Facility aims at facilitating exchange of information, joint training programmes exchange of expertise etc was proposed.

The Dairy Group in FAO was involved in refining of the 1993, Dairy Seminar ideas and in facilitating the getting together of participants, so as to enable the discussion of issues regarded as pertinent within the dairy sectors of Eastern and Southern African countries.

The Department of Research and Specialist Services (Zimbabwe) specifically Dairy Services and Dairy Herd Improvement were tasked with the responsibility of organizing and co-ordinating the workshop.

This workshop was unique in that it was the first time in Eastern and Southern Africa that dairy production scientists and marketing economists came together to consider their roles in dairy development and the need for a multi disciplinary approach to dairy development.

The workshop covered a variety of issues ranging from production and technical issues, socio-economic and marketing issues and the papers from the proceedings should be especially useful to policy makers and individuals working in the dairy sector in developing countries or in donor organizations and countries.

This report was prepared in the Department of Agricultural Economics and Extension at the University of Zimbabwe and funding was provided by FAO Meat and Dairy Section.

GLOSSARY OF ACRONYMS OR ABREVIATIONS

Acknowledgments

Sponsorship of the workshop came from the Food and Agriculture Organization of the United Nations and was organized by the Dairy Services and the Zimbabwe Dairy Herd Improvement Association (ZDHIA) in the Department of research and Specialist Services (DR&SS), in association with the Dairy Development Programme of Agricultural Rural Development Authority (ARDA) and the Department of Agricultural Economics and Extension of the University of Zimbabwe.

This workshop would not have been possible without the management and coordination efforts of Mrs Patricia Borland of Dairy Services (Zimbabwe). Special thanks go to Dumisani Dube, Tsitsi Chiremba, the University of Zimbabwe Dairy Unit and the Chikwaka Dairy Project for facilitating the field trips which provided an invaluable learning experience to the participants.

The Meat and Dairy Service (Animal Production and Health Division) of the Food and Agriculture Organization (FAO) deserves special thanks, especially Jørgen Henriksen for the planning of the workshop and invitation of the participants. The enthusiasm and dedication shown by all participants and resource people are indeed commendable and made the workshop an enriching experience.

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, © FAO 1996

Hyperlinks to non-FAO Internet sites do not imply any official endorsement of or responsibility for the opinions, ideas, data or products presented at these locations, or guarantee the validity of the information provided. The sole purpose of links to non-FAO sites is to indicate further information available on related topics.

TABLE OF CONTENTS

Foreword

Acknowledgements

Glossary of Acronyms/Abbreviations

Executive Summary

SECTION I: INTRODUCTORY SESSION

Opening Speech A. Jaure
Keynote Address: Network Facility for Dairy Development in Eastern and Southern Africa. J. Henriksen
Theoretical Background of Networking: Guidelines for Establishment of a Regional Exchange Network for Market Oriented Dairy Development. B. Maumbe
Opportunities for Dairy Development and Some Constraints. Background and Global Issues. Jorgen Henriksen

SECTION II: COUNTRY PAPERS ON DAIRY DEVELOPMENT AND STATUS OF THE DAIRY SECTOR

Zimbabwe Dairy Sector: Milk Production, Marketing and Processing. P. Borland and H. Moyo
Uganda Dairy Sector Development. C.W. Bunoti
Dairy Development Policy Review in the Kingdom of Swaziland. J.M. Mavuso
Milk Production and Marketing Systems in Tanzania. A.P. Masanje
Development of Milk Production and Marketing Systems in India. R.P. Aneja
Improving Smallholder Dairy Operations in Ethiopia. G. Felleke
Technical and Economic Considerations in the Establishment of a Milk Collection and Cooling Centre. S.G. Mbogoh, and M. Okoth
Experiences in Cooperative Dairying: A Case Study of Kuku Dairy Cooperative in Sudan. I.R. Abdall

SECTION III: STRATEGIES FOR SUSTAINABLE DEVELOPMENT OF MILK PRODUCTION, PROCESSING AND MARKETING IN DEVELOPING COUNTRIES.

Marketing of Dairy Products under a Changing Economic Environment: The Case of Zimbabwe - M. Matanda
The Growth of Private Dairy Enterprises in Nepal: Challenges and Opportunities. T.B. Thapa
ILR'S Research to Support Market Oriented Smallholder Dairy Development with Particular Reference to Eastern and Southern Africa. W. Thorpe
Development and Opportunities for market Oriented Smallholder Dairy Production in Zimbabwe: Nharira/Lancashire Case Study. B. Mupeta
Presentation of the Dairy Development Project Conducted in Bobo-Dioulasso Area, Burkina Faso. Z. Sorgho
The Role of National Dairy Boards to Regulate and Promote Dairy Development. K.E. Kolding
Smallholder Dairy Rehabilitation and Development Project in Ethiopia. G. Felleke

SECTION IV: GENDER AND SOCIO-ECONOMIC ISSUES IN DAIRY DEVELOPMENT

Women and Dairy Development in Ethiopia: A Case Study of Introduction of Cross-bred Dairy Cattle into the Mixed Farming System. G. Felleke
Women in Dairy Development: A Case Study of Uganda. E. Kyewalabye
Integration of Crop-Livestock Farming Systems in Smallholder Dairy Farms: A Case Study of the Nharira-Lancashire Farming Area of Zimbabwe. J. Francis, S. Sibanda, and V. Østergaard

SECTION V: FIELD TRIP AND GROUP DISCUSSIONS

Report on the Field Visit. D. Dube and T. Chiremba

Group Discussions - Session I: The Need for a Regional Network Facility
- Session II: Details of Establishing Network
- Session III: Structure, Location and Activities of Network

SECTION VI: CLOSING SESSION

Closing Speech - S. K. Hargreaves

Apendices: Appendix 1 - Workshop Programme
Appendix 2 - List of Participants and Contact Addresses
Appendix 3 - Biographical Data of Participants

REGIONAL EXCHANGE NETWORK FOR MARKET ORIENTED DAIRY DEVELOPMENT WORKSHOP

EXECUTIVE SUMMARY

The workshop on'The Regional Exchange Network For Market Oriented Dairy Development' in Eastern and Southern African countries held in Harare, Zimbabwe from 4th-8th December 1995 focused on the issue of setting up an information exchange network to promote and enhance the competitiveness of the dairy sector in the region, with specific emphasis on the smallholder production and marketing systems.

The workshop was attended by representatives from thirteen (13) countries in the region, from Nepal and India, as well as from bilateral donor agencies and international organisations.

The thirty (30) participants were drawn from all levels of the dairy production-marketing chain, ie. policymakers, administrators, researchers, animal breeders, veterinarians, farmers, processors, and food marketeers so as to promote the development of an integrated and systems approach to dairy development.

The workshop had several objectives:

1. To assess the feasibility of establishing a regional exchange network that would promote sustainable dairy development in member countries.
2. To come up with a tentative structure, constitution, action plan and budget for the suggested regional network.
3. To create a forum to exchange information on the changes occurring within the dairy sector as a result of deregulating of economies of Sub-Sahara African countries.
4. To look at ways of reducing dependency of countries in the region on dairy imports which are increasingly becoming more expensive.
5. To promote an integrated, market-oriented, participatory and gender sensitive outlook in the dairy development and in the development of the network with special emphasis on the small-scale production and marketing systems.
6. To enhance the appreciation of the potential of rural and local markets in developing countries and explore ways these markets can be tapped.

The workshop focused on the above networking issues and country papers were presented on production, research, marketing and consumer preferences so as to expose participants to challenges and opportunities existing in the region, from which players in the industry could benefit. Small group and panel discussions followed by presentations were used to discuss the establishment of the dairy development network which was given the acronym “DAIRYNET”. Field visits were organised to expose workshop participants to dairy research and smallholder dairy projects in the host country, Zimbabwe.

A total of twenty (20) papers including posters from group and panel discussions were presented and these can be grouped thus:

1. Production and technical issues for sustainable dairy development and enhancing women's participation in dairy production.
2. Production and marketing interlinkages and consumer orientation in dairy development.
3. The logistics and organisational requirements of developing the Regional Exchange Network For Market Oriented Dairy Development (DAIRYNET) at regional and national levels in the region.

Issues Emerging From Presentations and Discussions

Several important issues emerged from the group presentations and these are summarised below:

1. Change in National Policy

   At policy level, land tenure policies and poorly articulated or lack of policy on the dairy sector were seen to stifle sustainable dairy development in some countries in the region. The need for national and regional policy reforms or policy enactment was regarded as important for the dairy sector.

2. Milk Collecting-Bulking and Quality Standards

   The development of appropriate and cost-effective collection, cooling, bulking and milk processing centres and plants were seen as important components for the development of the dairy industry. The need to implement and maintain stringent quality standards in some countries and the development of cost-effective, cheaper and efficient milk testing techniques should therefore be stressed.

3. Gender Sensitivity

   The need for gender sensitivity in the implementation of dairy development and in data gathering by ‘DAIRYNET’ was emphasised. There is a need to maximise on the special abilities of both sexes as well as of children in dairy projects by focusing on major advantages gained for men, women and children within the family and in the community. Focus on improving women's access to and returns from dairy resources and from dairy projects is crucial for household food security, and for ensuring sustainability of dairy development projects in the region. Some dairy development projects in the region had negative impact in that they ended up over-burdening the women with the work of looking after the dairy cows and calves whilst the returns from milk sold accrued to the man. The devising of payment systems that would ensure that both men and women benefitted from the projects, was recommended.

4. Market and Consumer Orientation

   Market and consumer orientation of all players in the dairy sector was imperative for survival of dairy industries in the region. Failure to take cognisance of consumer preferences and market demand has resulted in loss of market-share of some dairy enterprises.

5. Indigenous Knowledge Systems and Local Resources

   Emphasis on the improvement of indigenous knowledge base and indigenous breeds in dairy development, instead of introduction of exotic breeds, was viewed as critical for the development of a sustainable dairy sector in the region. Exotic breeds are often a burden to smallholder farmers and at times disrupt farming activities, especially in regards to labour allocation, financing and farm management decisions. Indigenous dairy processing techniques were also seen as an area which needs to be improved.

6. Establishment of the DAIRYNET

   The establishment of The Regional Exchange Network for Market-Oriented Dairy Development (DAIRYNET) in East and Southern Africa was viewed as an important issue for the region, and the need of the new network to work with existing networks was emphasised.

Recommendations

1. The immediate establishment of The Regional Exchange Network for Market-Oriented Dairy Development ‘DAIRYNET’ for Eastern and Southern African countries interested in dairy development was seen as an important factor for the enhancement of the member countries.

   The network had to take cognisance of the following issues:

   • Being gender sensitive and developing a gender desegregated database was viewed as critical for enhancing the participation and contribution of both women and men in dairy projects.
   • The development of marketing information systems and training programmes in food marketing and demand analysis was seen as a major reason for establishing the network.
   • Continuous dialogue with governments, international and non-governmental organisations would be maintained through the network's activities. This could have a positive impact globally and on member countries' policies.

   • Compilation and collection of data would facilitate and aid national planning efforts.

2. A tentative action plan of The Regional Exchange Network for Market-Oriented Dairy Development (DAIRYNET) in East and Southern Africa was outlined as given below.

Action Plan

• The workshop on Regional Exchange Network for Market Oriented Dairy Development held in Harare, Zimbabwe from 04 to 08 December 1995 agreed that the appropriate location for the Coordinating Unit of the proposed DAIRYNET should be in Harare, Zimbabwe. The Government of Zimbabwe has indicated its willingness to host the Unit.
• To facilitate the establishment of the regional element of DAIRYNET, participants from countries attending the workshop shall, for the time being, act as Interim Focal Points. Upon return to their home countries, the participants will consult with Government institutions and NGOs dealing with dairy development to identify the institution/organisation concerned to become the focal point in individual countries to liaise with the Regional Coordinating Unit of DAIRYNET, in Zimbabwe. The Dairy Group at FAO Headquarters should be informed within the first three months of 1996 (by 31 March, 1996) of the establishment of the each national focal point.
• FAO will, within the first six months of 1996 (by 30 June 1996) through its sub-regional office in Zimbabwe, arrange to obtain the formal agreement of the Government of Zimbabwe for the establishment of the Regional Coordinating Unit of DAIRYNET and indicate the name of the institution/ organisation in which the Unit will be based.
• During January 1996, the FAO Dairy Group will also transmit to all Interim Focal Points, a summary of the outcome of the workshop, along with guidelines for setting up DAIRYNET at the national level.
• The workshop agreed to the setting up of a Regional Steering Committee. The committee will comprise the National Coordinator/Focal Point from each member country.
• To provide financing for the establishment of the DAIRYNET Coordinating Unit in Zimbabwe and meetings of the Regional Steering Committee represented by the National Coordinator/ Focal Point in each country, FAO will prepare a small project for initial operations. Activities and services to be carried out by the Regional DAIRYNET may require external financing. Potential donors may be contacted to provide financial support for such development activities.

Conclusion

The workshop provided an effective forum for participants from different platforms and professional backgrounds to meet and discuss common achievements and more significantly agree and formulate a strategy for the launching of a dairy development networking facility.

The workshop also effectively showed the inter-linkages that exist in the dairy production-consumption chain and how the effectiveness of the dairy sector can be enhanced by the development of an information system.

The increased pressure on Sub-Sahara Africa to deregulate agricultural production and marketing activities calls for the adoption of market and consumer-oriented production and marketing systems with easy access to information of all activities in the dairy sector.

Outlined below is a summary of the working group:

First Synthesis of Working Group Deliberations

1. Determining Considerations

   The network should focus on:

   • information dissemination;
   • smallholder milk producer;

   • training of players in the dairy sector.

2. Constitution

   If a constitution is required, this could be framed when the objectives and activities of the network have been agreed.

3. Name

   The following name was adopted for the Regional Network:

   DAIRYNET East and Southern Africa
   Dairy Information Network

   It was proposed a competition be sponsored to design an appropriate logo for DAIRYNET.

4. Purpose

   To Promote Dairying in the Region by Advancing EXCHANGE OF INFORMATION AMONG MEMBER COUNTRIES

5. Objectives

   • To facilitate exchange of information on dairying with special emphasis on smallholder milk producers.
   • To assist in building the capacities of national institutions and organisations involved in dairy development.
   • To establish and maintain a dairy data base for member countries.

   • To provide information on existing training/educational facilities and promote dairy training in the region.

6. Activities

   The objectives will be achieved through the following activities:

   • Compiling and maintaining information on existing dairying training facilities and resources to facilitate training, meetings, seminars and workshops.
   • Compiling and maintaining a data bank of existing professional dairying expertise in the region.
   • Assembling and disseminating information on research and extension pertinent to dairy development in member countries taking account of gender issues.
   • Distributing information through publications, journals, bi-annual newsletters, abstracts, progress reports etc.
   • Forging information exchange linkages with other regional and international networks, organisations, institutions and professional bodies connected with dairying.
   • Mobilising funding for setting up and sustaining the network.
   • Promoting awareness about DAIRYNET, its activities and Services.