Innovative credit for livestock value chain development

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Innovative credit for livestock value chain development Livestockproductioncreditinnovations Livestockinputsupply/servicecreditinnovations Livestockprocessingmarketinginnovation Businessorientedenterprise–largernumbers,betterfeeding,morecycles Objective: Tostimulateinnovationsinthedifferentcomponentsofthelivestockvaluechain byexistinglendinginstitutions SomeMFIs arereadytovaryloansizesandcollateralrequirementsforcommercially orientedvaluechaininterventions Manydistrictlevellendinginstitutions,especiallycooperativesareinsufficiently equippedtodealwithloanadministrationforcommerciallyorientedloans,resultingin delayed/poorrepayment Flexibilityintheuseofproductionloansistobedevelopedsinceinitialinvestmentsare seenasasteppingstoneinthedevelopmentprocessand/orproductionandmarket conditionschangesduringtheloanperiod. Lendingforsmallscaleagribusinessshowsexcellentrepayment Egglayingunit Commercial fatteningoxen Commercial fatteningsheep Apiculturefarm Coopinputshop Privateapicultureshop Community Paravet Privatehoneyextraction Cooperativemilkshop Pulletproduction womengroups Lessons learned ThisdocumentislicensedforuseunderaCreativeCommonsAttributionNoncommercialShareAlike3.0Unported License.

Transcript of Innovative credit for livestock value chain development

Page 1: Innovative credit for livestock value chain development

Innovative credit for livestock value chain development

Livestock�production�credit��innovations

Livestock�input�supply/service��credit��innovations

Livestock�processing�marketing�innovation�

Business�oriented�enterprise�–larger�numbers,�better�feeding�,more�cycles�

Objective:�To�stimulate�innovations�in�the�different�components�of�the�livestock�value�chainby�existing�lending�institutions�

• Some�MFIs are�ready�to�vary�loan�sizes�and�collateral�requirements�for��commercially����oriented��value�chain�interventions

• Many��district�level�lending�institutions�,�especially�cooperatives�are�insufficiently�equipped�to�deal�with�loan�administration�for�commercially�oriented�loans,�resulting�in�delayed/poor�repayment

• Flexibility�in�the�use�of��production�loans�is�to�be�developed�since�initial�investments�are�seen�as�a�stepping�stone�in�the�development�process�and�/or�production�and�market�conditions�changes�during�the�loan�period.

• Lending�for�small�scale�agri�business��shows�excellent�repayment�

Egg�laying�unitCommercial�

fattening�oxenCommercial�

fattening�sheepApiculture�farm

Coop�input�shop Private�apiculture�shopCommunity�Para�vet

Private�honey�extraction� Cooperative�milk�shop

Pullet�production�women�groups

Lessons learned

This�document�is�licensed�for�use�under�a�Creative�Commons�Attribution�Noncommercial�Share�Alike�3.0�Unported License.