Dairy producer organization sustainability assessment tool · sustainability assessment tool Key...
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Dairy producer organization sustainability assessment tool Key messages • Producer organizations (POs) are increasingly becoming important to small producers in securing better access to services through intermediation. • Strong POs, strengthen farmers bargaining power, reduce farming‐ and market‐ related risks, help farmers gain market access and to benefit from economies of scale, hence the imperative to be sustainable. • Pitching on the three basic tenets of sustainability, social, economic and environmental measures, EADD developed a PO sustainability assessment (POSA) tool and uses it as a guide for dairy POs in undertaking annual self‐ assessments. Methods The POSA tool is composed of seven priority sustainability dimensions, decomposed into sub‐dimensions and broken into several specific indicators. The indicators are allocated weighted scores, based on their relative importance. An overall score is derived by aggregating the scores. Gender is mainstreamed in the assessment by incorporating relevant gender indicators in the dimensions. A pre‐ programmed Excel spreadsheet that auto‐generates scores once the data on the indicators are entered, the tool is supported by a detailed user manual. Conclusions The tool helps in informing and guiding the growth of dairy POs towards sustainability. It provides evidence of areas where specific producer organizations fall short of achieving their desired development trajectory, hence, information on what needs to be improved. Development agents can also use it to gauge the type of development interventions necessary to spur growth in the dairy sector, through POs. Expected results Like other businesses, the dairy PO business is largely expected to follow a typical business life cycle. Purpose The POSA tool, analysis and results are used by EADD and POs: • To guide users in assessing their progress towards sustainability • To identify and prioritize sustainability gaps • To formulate action plans to address sustainability weaknesses • To guide partnership dialogue between the PO and EADD or any other partner. May 2017 Findings The growth of POs toward sustainability follow the typical business life cycle, however, external shocks may significantly disrupt this trajectory. For instance in 2013, a sudden cut in EADD support to POs without preparing them first to manage the absence of this support is evident in Figure 2 where the growth trajectory falls. Dimension Maximum score (%) Governance 24 Output market 18 Access to inputs and services 18 On‐farm impact 15 Member loyalty 10 Financial Health 10 External environment 5 Total score 100 Figure 1: Uganda PO dimension‐wise performance 2015–2016 The POs recorded the worst performance on engagement with the output market in 2015, with no improvement in 2016, hence the need to formulate clearer engagement strategies. 2011 2012 2013 2014 2015 2016 Bulking 22.7 24.6 21.8 31.5 50.9 45.7 Chilling 25.2 32 28.6 49.9 50.2 47.2 Prebulking 26.2 36.9 30.9 51.1 53.4 53.2 0 10 20 30 40 50 60 PO mean scores Figure 2: Trend in Uganda PO mean scores by hub performance Photo: Avant Garde Contacts: Isabelle Baltenweck ‐ [email protected] 7 th Multi-Stakeholder Partnership Meeting Achieving multiple benefits through livestock-based solutions, Addis Ababa, 8-12 May 2017 This document is licensed for use under the Creative Commons Attribution 4.0 International Licence. May 2017
Transcript of Dairy producer organization sustainability assessment tool · sustainability assessment tool Key...
Dairy producer organization sustainability assessment tool
Key messages
• Producer organizations (POs) are increasingly becoming important to small producers in securing better access to services through intermediation.
• Strong POs, strengthen farmers bargaining power, reduce farming‐ and market‐related risks, help farmers gain market access and to benefit from economies of scale, hence the imperative to be sustainable.
• Pitching on the three basic tenets of sustainability, social, economic and environmental measures, EADD developed a PO sustainability assessment (POSA) tool and uses it as a guide for dairy POs in undertaking annual self‐assessments.
Methods
The POSA tool is composed of seven priority sustainability dimensions, decomposed into sub‐dimensions and broken into several specific indicators. The indicators are allocated weighted scores, based on their relative importance. An overall score is derived by aggregating the scores. Gender is mainstreamed in the assessment by incorporating relevant gender indicators in the dimensions. A pre‐programmed Excel spreadsheet that auto‐generates scores once the data on the indicators are entered, the tool is supported by a detailed user manual.
ConclusionsThe tool helps in informing and guiding the growth of dairy POs towards
sustainability. It provides evidence of areas where specific producer
organizations fall short of achieving their desired development trajectory,
hence, information on what needs to be improved. Development agents can
also use it to gauge the type of development interventions necessary to spur
growth in the dairy sector, through POs.
Expected resultsLike other businesses, the dairy PO business is largely expected to follow a typical business life cycle.
Purpose
The POSA tool, analysis and results are used by EADD and POs:
• To guide users in assessing their progress towards sustainability
• To identify and prioritize sustainability gaps
• To formulate action plans to address sustainability weaknesses
• To guide partnership dialogue between the PO and EADD or any other partner.
May 2017
FindingsThe growth of POs toward sustainability follow the typical business life cycle,
however, external shocks may significantly disrupt this trajectory. For instance in
2013, a sudden cut in EADD support to POs without preparing them first to
manage the absence of this support is evident in Figure 2 where the growth
trajectory falls.
Dimension Maximum score (%)
Governance 24
Output market 18
Access to inputs and services 18
On‐farm impact 15
Member loyalty 10
Financial Health 10
External environment 5
Total score 100
Figure 1: Uganda PO dimension‐wise performance 2015–2016
The POs recorded the worst performance on engagement with the output market in 2015, with no improvement in 2016, hence the need to formulate clearer engagement strategies.
2011 2012 2013 2014 2015 2016
Bulking 22.7 24.6 21.8 31.5 50.9 45.7
Chilling 25.2 32 28.6 49.9 50.2 47.2
Prebulking 26.2 36.9 30.9 51.1 53.4 53.2
0102030405060
PO m
ean scores
Figure 2: Trend in Uganda PO mean scores by hub performance
Photo: Avant Garde
Contacts:Isabelle Baltenweck ‐ [email protected]
7th Multi-Stakeholder Partnership MeetingAchieving multiple benefits through livestock-based solutions, Addis Ababa, 8-12 May 2017
This document is licensed for use under the Creative Commons Attribution 4.0 International Licence. May 2017
