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Food For Progress & Food for Education Program Overview

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Presentation on theme: "Food For Progress & Food for Education Program Overview"— Presentation transcript:

1 Food For Progress & Food for Education Program Overview
Innovative Solutions for Global Prosperity

2 Mission Land O'Lakes International Development develops market-driven agribusiness systems to generate economic growth, improve health and nutrition, and alleviate poverty. We apply a value chain approach to: Agricultural productivity and competitiveness Food processing, product development, and quality assurance Enterprise, cooperative, and association development Food security and livelihood creation International development is a reflection of who we are as an organization.

3 Land O’Lakes Facts Recent Country Programs
Albania Bulgaria Macedonia Armenia Turkmenistan Azerbaijan Ukraine Georgia Uzbekistan Russia Angola DR Congo Ethiopia Guinea Kenya Rwanda Philippines Indonesia East Timor Afghanistan Bangladesh Pakistan Palestine Sri Lanka Listing of countries where we either have programs or recently concluded programs. Colombia Honduras Nicaragua Malawi Mali Mozambique Nigeria South Africa Madagascar Sudan Tanzania Uganda Zambia

4 Land O’Lakes Monetization
13 School Nutrition Programs Six Food for Progress Programs 323,360 Total MT of commodities monetized 28,000 MT Corn 6,000 MT Feed Peas 45,750 MT NFDM 82,160 MT Soybean Meal 149,450 MT Wheat 4,000 MT Soybean Oil 8,000 MT Butter

5 Land O’Lakes Current USDA Projects/Years
Country Year Commodity Tonnage Program Pakistan 2004 – 2008 NFDM 7,300 MT SNP 416 (b) Uganda 2005 – 2008 Wheat 11,100 MT FFP Bangladesh 2005 – 2009 3,000 MT Philippines 3,200 MT Kenya 2006 – 2009 25,000 MT Soybean Meal 11,910 MT Feed Peas 6,000 MT Madagascar 12,450 MT

6 Commodity Management Overall strategic advice on proposal development planning. Commodity market information and analysis Port, storage and warehousing information Bellmon analysis, information on Usual Marketing Requirements (UMR’s) Advertisement in local media – invitation on bids Sale and other contracts Shipment Overall strategic advice: Overall strategic advice on proposal development planning. Commodity Market Information: including proposed commodity for monetization, price and quantity information, country consumption, production, import and export information. Port, storage and warehousing information: Analysis required for the selected commodities). Bellmon analysis: on relevant commodity information including data needed to complete a Bellmon analysis, information on the Usual Marketing Requirements (UMR’s), information concerning any sensitivities or historical situations concerning the use of food aid that may influence the selection of commodity to propose, any other relevant information that might inform Land O’Lakes/clients as to the preferred mix of commodities to propose. Advertisement in Local media – invitation on bids:

7 Current School Nutrition Program Snapshots
Bangladesh School Feeding Program Jamalpur District Four upzilas (counties): Jamalpur Sadar, Sharishabari, Melandah, Islampur 600 schools 130,000 children fed daily Local Partners: Milk: AKG, PRAN, BRAC Dairy Helen Keller International Biscuits: Ratan Food, Globe Biscuits, Olympic Biscuits Each child receives: 200 ml UHT milk, 40 grams of fortified biscuit

8 Pakistan School Feeding Program
Sindh Province, Ghotki District 2,000 government primary schools 160,000 students fed daily Girls enrollment in program district risen 130% compared to only 29% in non-program districts Partners: Haleeb Foods, EM5 Nutraceutical, Sewai Foundation, Khan Distribution Services, Kyanat Foundation

9 Philippines School Feeding Program
Camarines Sur Province; 408 Schools across the cities of Pili, Naga City and Goa 168,380 children fed daily Partners: RFM Milk, Alaska Milk Universal Robina Corporation, First Choice Food Corporation XVC Logistics Corporation

10 Land O’ Lakes’ SNP Footprints
Arrange fair and skillful monetization and barter arrangements Create industry contacts that foster partnerships Develop proper use of commodities with USDA and local buyers. Well-trained staff Teach world class manufacturing techniques Computerize warehousing and inventory management techniques. Improve Monitoring & Evaluation techniques Refurbish schools Educate on proper hygiene Make connections at the highest level of the government, industry Ensure sustainability Develop proper use of commodities with USDA and local buyers: FOR EXAMPLE: Low Heat NFDM in Bangladesh. Proper manufacturing techniques for UHT milk i.e. Philippines Trained staff: We hire the best country managers to run programs and then we hire the best local staff. We teach business approaches and practices that stay even after we leave: HR, Accounting, Admin, Compliances, project management, Public Relations. Exposure to world class manufacturing techniques: FOR EXAMPLE: HACCP, GMP, FBI (Food Borne Illness), ISO certification Computerized Warehousing and Inventory management techniques: LIFO (last in first out), palletized storage, rodent prevention, quality control Monitoring and Evaluation: Brought in improved software; gathering data on height, weight, grades, enrollment, new schools opened, girls attendance. Refurbish Schools: FOR EXAMPLE benches, teaching and training material for teachers, bathrooms for girls and boys and recycling centers Education on proper hygiene: Connections: at highest level of the government, industry Sustainability: Partnering with donors, host country governments, local food industry, local NGOs, teachers and parents we create sustainability. FOR EXAMPLE: Pakistan, Bangladesh, Philippines, Indonesia and Vietnam

11 Assistance Provided All Along the Dairy Value Chain
Food for Progress Assistance Provided All Along the Dairy Value Chain Improved Production: Capacity Building and Technical Assistance Increased Sales and Household Income Cooperative Development and Bulk Sales Input Supplies and Services Improvements in Quality Increased Market Access Market Milk/Nutrition Messages to Schoolchildren Investment by Local Entities

12 Production: Capacity Building and Technical Assistance
Philippines 400 pregnant Holstein-Sahiwal cows imported from New Zealand & distributed to 162 farmers in 16 co-ops under cow loan program,150 planned in 2008

13 Increased Sales & Household Incomes
Sri Lanka: Negotiated 5 rupee/liter price increase for fixed farm gate milk price Farmers producing 4-5 liters per day increased income by 6-7.5%. Milk supply exceeded demand, resulting in introduction of paneer cheese, sales increased 15% in one month, 30% overall Modest increases in all regions: mostly Central and Western. Jesa Farm Dairy: A real success story – high quality product and sales throughout Uganda.

14 Cooperative Development & Bulk Sales
Encouraging farmers to form or join cooperatives, where appropriate to gain the following benefits: Economies of scale in purchasing inputs & marketing costs Facilitates access to farm gate open market Facilitates off-season sales Venue for training and technical assistance together Strength in numbers: Leverage sale price Eastern Uganda Dairy Farmers’ and Breeders’ Association: -11 primary dairy cooperatives representing over 500 farmers, nearly 50 percent of which are female -independent coops faced problems: low milk prices, unstable demand and/or unpaid milk deliveries with some buyers -technical support from Land O’Lakes, formed a business arm, Eastern Dairies, to carry out the collection and marketing of the farmers’ milk -October 2006: 2,000 liter milk cooler financed in part through a matching grant managed by Land O’Lakes via the USDA Food For Progress program -55,000 liters of milk per month collected by the primary dairy cooperatives, 42,000 liters/month bulked and sold through the new milk cooler -Within one year of operation, Eastern Dairies quadrupled the volume of milk collected from farmer members and other local smallholder dairy farmers in the region, and sold to the local market in Mbale town -A rigorous quality assurance system established meeting standards set by Uganda Bureau of Standards -LOL provided modern accounting software to enable ED to track profitability since Aug 2007 -Average monthly net profit of over US$ 1,500 -Eastern Dairies used profits and member contributions to reinvest in the business through purchase of assets and upgrades to the milk bulking center valued at over $12,400 -As a result, price for bulked, chilled milk sold through Eastern Dairies is 60% higher than the price for milk being sold by the primary cooperatives. -Financial benefits are being passed on to farmer-members who are now receiving US$ 0.23 per liter, up from $US 0.15 prior -Household incomes increased by more than 50% for farmers who deliver milk to Eastern Dairies -Business grew from one employee and volunteers to six full-time employees in the last year -Additional employment: new milk transport, fodder production and extension service enterprises.

15 Input Supplies and Services
Sri Lanka: LOL facilitated obtaining raw material inputs for Yarlco feed mill via bulk shipment with major A9 highway closed $20,000 loan to Yarlco to enable bulk purchase of raw materials for feed mill matched 1:1 with own funds LOL facilitates local analysis of Yarlco feed shown as 90% satisfactory, & results used to improve quality Ninety (90) farmer-beneficiaries received new grass cuttings to plant for cattle fodder.

16 Improvements in Quality
Training and capacity building from milk shed to consumer Better quality means higher prices and incomes Better quality expands markets for industry (domestic and international), increases revenues, and supports sustainability Quality enhancements aid nutrition Philippines 91 farmers trained on milk quality & testing standards Two processing plants provided equipment to enhance operations & TA provided to 20 employees

17 Increased Market Access: Local and Export Outlets
Sri Lanka: Research & analysis assisted by University of Jaffna Faculty of Commerce & Management studies on market trends, current production, retail & farm gate prices, consumption & milk value chain, consumer knowledge New channels including Telecom Jaffna, Jaffna Multipurpose Cooperative

18 Marketing Milk to School Children and Promoting Nutrition Messages
Builds sustainable nutrition Builds a socially responsible industry Builds a responsive government that invests in people Builds a market highly nutritious foods Builds a market for health and nutrition Philippines: Milk and nutrition awareness through milk feeding programs and local press has targeted 35,000 parents & consumers 320,000 school students will get rulers with milk nutrition awareness messages in 2008 11,000 school children received products processed by two dairy zone plants

19 Sustainability through Investment by Local Entities
Philippines: For school milk component: almost 50% funded by project and 50% funded by local government units, Dept. of Education, National Dairy Association (NDA) $175,000 has been received in matching support & activities by local partners President Gloria Arroyo has budgeted $4.5 million to feed 70,000 school children in Lanao Del Norte province & surrounding areas; milk will be supplied by NGO Lanao Foundation, Inc. which received processing equipment, TA, and management support from LOL By LOA (July 09), estimated $4.75 million to be provided by local partner activities, exceeding USDA $4.2 million investment

20 This is NOT just a program for us – it is a passion, it is a commitment and it supports our values of eliminating hunger across the globe.

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