Output Market

Existing Milk Marketing Channel

8 Barriers facing Producers

1. Low volumes not interesting to formal sector

2. Constant market price fluctuations3. Delayed payments – one week or more4. Lack of collection points in rural areas5. Lack of market information6. Unpredictable demand7. Lack of trust and dissatisfaction in

traditional purchasing process8. Lack of buyer loyalty to producers

6 Barriers facing Processors

1. Poor quality and quantity of milk2. Collectors are adulterating milk

(adding water) 3. Lack of trust in collectors and

producers4. Competing with informal market on

price 5. Poor transport facilities in remote

areas6. Lack of producer loyalty leads to

underinvestment in production capacity

How has SDVC responded?• Promoted producer groups and

input shops to improve productivity

• Established village-level collection points

• Trained milk collectors to reduce spoilage and maintain fair business policies

• Facilitated matchmaking between processors and producers

• Provided ongoing linkage support between producers, collectors and processors to build trust

• Introduced digital fat testing system to improve transparency among stakeholders

Village Level Fat Testing Point: Digital fat testing facilities, farmers based on milk fat content, receipt issued to farmers with their individual milk fat reading, milk aggregated in a locked barrel

Village Level Fat Testing Point: Digital fat testing facilities, farmers based on milk fat content, receipt issued to farmers with their individual milk fat reading, milk aggregated in a locked barrel

Milk

Payment

Milk Transporter: The milk collector picks up the locked barrel of aggregated milk and transports it to the chilling plant. Milk transporter is paid a wage by BRAC.

Milk Transporter: The milk collector picks up the locked barrel of aggregated milk and transports it to the chilling plant. Milk transporter is paid a wage by BRAC.

BRAC Milk Chilling Plant: Digital fat testing facilities, increased supply of high quality milk

and improved MIS systems.

BRAC Milk Chilling Plant: Digital fat testing facilities, increased supply of high quality milk

and improved MIS systems.

Model Introduced by CARE to overcome (DFT Model)

How has SDVC integrated women into this vision and model?

• Develop community-based collection system so that women can sell milk directly

• Develop women entrepreneur as dairy collectors

THANKS