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Theme 5: Finalising the Asian smallholder dairy development strategy

Overview and finalisation of workshop outcomes

Regional strategy

  1. Vision
  2. Mission stated
  3. Preliminary objectives

Prioritized issues

  1. Human Resources & Knowledge management
  2. Competitiveness & Productivity
  3. Consumers & Market access
  4. Enabling Environment

Elaborating on priority themes

As a final exercise, participants were asked to once again convene in groups according to the top ranked priorities. Groups were self-selecting on the basis of expertise and personal interest in an issue. The task for the groups was to recommend practical actions related to each of the priorities, in this case as ranked by number.

Group 1: Human resources and knowledge management

Group 2: Safety and quality

There are different levels of aspects of safety: animal health, consumers, and environment.

Group 3: Consumers and market access

Group 4: Enabling environment

Group 5: Finance

Wrap-up and feedback from workshop

Next steps:

Action plan for the strategy; Immediate steps

  1. Dairy Asia – information network hosted by APHCA www.dairyasia.com
  2. Vocational dairy & outreach training – based at DLD Chiang Mai
  3. Regional school milk promotional campaign – a glass of Asian milk per day for every Asian child
  4. Support for drafting SDD national action plans

Perspectives on the workshop

The Private Sector: Dr. Mohammad Afzal, Livestock and Dairy Development Board, Pakistan

Fair competition has an important role to play in developing the sector. In Pakistan, when Nestle closed down 6 factories in the region, we felt the impact of monopolistic behaviour from milk-producing countries supplying materials to the world and the affect of EU subsidies. Globally, competition is behind market behaviour. When there is fair competition, markets behave as they should.

Prices to producers have risen with entrance of new large participants, from 10-12 Rupees to 18-20 Rupees. The private sector has money and ‘muscle’ to get to change consumer behaviour. Pakistani consumers understand that Tetra-pak is safer and will pay more for Tetra-pak products. Milk industries need to learn from other examples: for example, how can Pepsi market a product for which consumers are ready to pay 60 Rupees per litre, but milk marketers don’t motivate consumers to buy a healthier, higher quality product?

Healthy competition means donors, government and the private sector each playing its role but working together. The private sector, for example, can play a role in financing. The private sector is instrumental in providing what industry needs. In developing a strategy, let us think about what the small dairy farmer needs.

The Coop Sector: Dr. Belavadi from the National Dairy Development Board, India

This has been a stimulating experience and a wonderful opportunity to interact with participants from many countries. It has been a tremendous learning experience.

We can see from this workshop that there are a lot of challenges ahead for the coop sector in priority thematic areas. Each country must attend to those features that are a priority for their industry and seek to provide a level playing field and an enabling environment. In such an environment, everyone has a chance to compete, even the very small household dairy producer with just one or two cattle. A dairy strategy should bring benefits to everyone involved. However, it is important to keep in mind that very small producers have few resources and have little formal education. To assume that the market can take care of the interests of all producers and consumers is not realistic. This is why institutions play vital role. Smallholders need institutions of their own. Existing institutions need to evolve, and this needs an innovative policy environment.

Public Sector: Ms. Tsetsgee Ser-Od, Director, Dairy Project, Mongolia

Thanks to the Common Fund for Commodities, the Animal Production and Health Commission of Asia and the Pacific, and FAO for bringing us together at this workshop. It is quite special to have a chance to meet with international donors and professionals with so much knowledge and experience in developing dairy industries worldwide and in the region. I am honoured to among this group of people and to be taking part in this process of developing a strategy for smallholder farming in the region.

Every country has its own features, its own ways of living, and their own ways of developing their dairy industry. The common objective is better nutrition for consumers and prosperity for smallholder dairy farmers. I came from a long way, from a country in Central Asia, but this workshop has helped me to better understand what is happening in the dairy industry, and perhaps other people know more about what is happening in Mongolia. Thank you all for sharing your knowledge and experience.

The Do’s and Don’ts for the dairy sector: Dr. Harsev Singh, Reliance Retail, India Governments

Don’t think you are the only one who knows what is best for smallholders and interpret roles in ways that suit your agenda.

Do use participatory approaches with rural people, who should be a deciding factor in determining what is good for them, rather than for the people in the boardrooms.

Cooperatives

Don’t think you are the only custodian or ‘voice’ of the smallholder or the only ones protecting the interests of smallholders.

Do be open enough to understand and think ‘out of the box’ and to understand and see what ways and means can help farmers become more productive.

The Private Sector

Don’t think that maximizing profit is the only motive of business. Do be a good corporate citizen by involving stakeholders.

Conclusions Planned activities

Follow-up activities – immediate

Follow-up activities – medium term

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