Endorsing AgDevCo

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Endorsing AgDevCo

• Launch Presentation
• London, May 2009

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Pioneering a new development model in the Kenya
Dairy Industry

• Kenyas dairy industry provides an important
  source of income to 660,000 rural households,
  most of whom are smallholder farmers.
• Over 80 of milk production is channeled through
  informal markets.
• Prices are low and revenues are unstable
• Quality of the milk is varied due to poor
  conditions of cooling and transportation.

• Assist farmer organizations to create new
  farmer-owned cooling plant businesses.
• Assist these businesses to improve skills and
  organization, and increase productivity
• Help them create and sustain new market linkages,
  and improve bargaining power
• Build the capacity of local business development
  service providers, operating around the hub
  business

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Dairy the Chilling Plant Hub
FARMERS
OTHER RELATED MEs
HARDWARE SUPPLIERS
CHILLING HUB
VILLAGE BANKS
FIELD DAYS
QUALITY TESTING
TRANSPORTERS
FEED SUPPLY
AI EXTENSION
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Kenya Dairy Results to December 2008
14,000 SmallholderFarmers
US7.6 Million Milk Sales
4 Cooling Plants 149 full-time staff
US 8.9 million to urban markets in 2008

• Results to Date
• Cooling plants transformed into vibrant business
  hubs giving farmers access to reliable markets,
  information, micro-loans, inputs, animal health,
  healthcare and education services through a
  check-off system.
• Women and youth empowerment initiatives launched
  at Nyala.150 Nyala dairy women farmers access
  water storage facilities through a check-off
  system and a100 young people access bikes on
  credit and are incorporated in Nyala milk
  transport system.
• Mkulima in advanced exploration of value adding
  (processing) opportunities
• East African Dairy Development program supported
  by Gates Foundation, led by Heifer International
  to scale up to 180,000 farmers in Kenya, Uganda
  and Rwanda

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The Basis for Our Work

• The problem About 40 percent of the worlds
  population lives in poverty, mostly in rural
  areas of the developing world.
• The solution Boost private enterprise that helps
  poor people in developing countries, especially
  in rural areas.
• Private sector development, targeted at key value
  chains, drives economic development and creates
  sustainable opportunities for poor people to
  improve their lives.
• Small- and medium-sized enterprises (SMEs) are a
  critical engine of growth, creating jobs as well
  as markets for products and services.
• Sound business strategies and practices help
  entrepreneurs createcompetitive SMEs.

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Our Approach Building Businesses and Industries
The core elements of our approach
Analyze the business opportunity
Refine and scale up to expand impact
Identify the entrepreneur
Develop the business
Identify a high-potential industry that can
support scaleable, replicable businesses that
benefit the rural poor, and the point(s) along
the value chain where interventions can be most
effective
Find someone with business aptitude and the drive
and determination necessary to succeed
Provide the necessary technical and business
development support to help the business reach
its full potential
Improve the business model based on experience
and use it to launch or expand more businesses
within the industry
Improve the business environment
Promote regulations and policies that improve the
business climate
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The Results in 2007
In addition, our entrepreneurship development
programs trained more than 1,500 people in nine
countries.
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Strategic partnerships are critical for success
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Endorsing AgDevCo

• AgDevCo is based on lessons learned from
  experience and has a high chance of success given
  its
• Domestic and regional food markets are largest
  looming opportunity
• Holistic vision, not just the core business
  including providing infrastructure
• Commitment to African entrepreneurs and investors
  
• Provision of patient capital - the scarcest input
  especially for agri-related businesses
• Commercial basis for the integration of small
  farmers
• Recognition of need for technical assistance and
  training

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Contact Information
TechnoServe Europe Sarah Holmes UK Development
Manager Tel [phone] sholmes_at_tns.org
TechnoServe headquarters 1800 M Street, NW,
Suite 1066, South Tower Washington, DC 20036 Tel
1 202 785 4515 Fax [phone] Email
technoserve_at_tns.org For office locations around
the world, check www.technoserve.org
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Our Services

• Building Industries
• Market and industry research
• Industry strategic planning
• Supply chain organization
• Industry association formation and support
• Policy analysis
• Advocacy support and training
• Improving the Business
• Environment
• Capital access
• Leadership development
• Developing local business service providers

• Developing Entrepreneurs
• Entrepreneurship training
• Business plan competitions
• Building Businesses
• Business needs and feasibility assessment
• Business planning
• Market linkages
• Capital raising
• Managerial and employee training
• Management consulting
• Technical advice
• Intensive operational support
• Farmer organization and support
• World-class business mentor linkages

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Where We Work
Norwalk, CT Office
Washington, DC Office
Current Work
Mozambique Nicaragua Rwanda Peru South
Africa Swaziland Tanzania Uganda
Chile Colombia El Salvador Ethiopia Ghana Guatemal
a Honduras India Kenya
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How Farmers pay for Services through the Business
Hub
SERVICES INPUTS
HARDWARE SUPPLIERS
FARMERS
VILLAGE BANK
AI EXTENSION
FEED SUPPLY
TRANSPORTERS