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 MissionLand 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 competitivenessFood processing, product development, and quality assuranceEnterprise, cooperative, and association developmentFood security and livelihood creationInternational development is a reflection of who we are as an organization.
3 Land O’Lakes Facts Recent Country Programs AlbaniaBulgariaMacedoniaArmenia TurkmenistanAzerbaijan UkraineGeorgia UzbekistanRussiaAngolaDR CongoEthiopiaGuineaKenyaRwandaPhilippinesIndonesiaEast TimorAfghanistanBangladeshPakistanPalestineSri LankaListing of countries where we either have programs or recently concluded programs.ColombiaHondurasNicaraguaMalawiMaliMozambiqueNigeriaSouth AfricaMadagascarSudanTanzaniaUgandaZambia
4 Land O’Lakes Monetization 13 School Nutrition ProgramsSix Food for Progress Programs323,360 Total MT ofcommodities monetized28,000 MT Corn6,000 MT Feed Peas45,750 MT NFDM82,160 MT Soybean Meal149,450 MT Wheat4,000 MT Soybean Oil8,000 MT Butter
6 Commodity ManagementOverall strategic advice on proposal development planning.Commodity market information and analysisPort, storage and warehousing informationBellmon analysis, information on Usual Marketing Requirements (UMR’s)Advertisement in local media – invitation on bidsSale and other contractsShipmentOverall 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 ProgramJamalpur DistrictFour upzilas (counties): Jamalpur Sadar, Sharishabari, Melandah, Islampur600 schools130,000 children fed dailyLocal Partners:Milk: AKG, PRAN, BRAC DairyHelen Keller InternationalBiscuits: Ratan Food, Globe Biscuits, Olympic BiscuitsEach child receives: 200 ml UHT milk, 40 grams of fortified biscuit
8 Pakistan School Feeding Program Sindh Province, Ghotki District2,000 government primary schools160,000 students fed dailyGirls enrollment in program district risen 130% compared to only 29% in non-program districtsPartners: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 Goa168,380 children fed dailyPartners:RFM Milk, Alaska MilkUniversal Robina Corporation, First Choice Food CorporationXVC Logistics Corporation
10 Land O’ Lakes’ SNP Footprints Arrange fair and skillful monetization and barter arrangementsCreate industry contacts that foster partnershipsDevelop proper use of commodities with USDA and local buyers.Well-trained staffTeach world class manufacturing techniquesComputerize warehousing and inventory management techniques.Improve Monitoring & Evaluation techniquesRefurbish schoolsEducate on proper hygieneMake connections at the highest level of the government, industryEnsure sustainabilityDevelop proper use of commodities with USDA and local buyers: FOR EXAMPLE: Low Heat NFDM in Bangladesh. Proper manufacturing techniques for UHT milk i.e. PhilippinesTrained 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 certificationComputerized Warehousing and Inventory management techniques: LIFO (last in first out), palletized storage, rodent prevention, quality controlMonitoring 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 centersEducation on proper hygiene:Connections: at highest level of the government, industrySustainability: 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 ProgressAssistance Provided All Along the Dairy Value ChainImproved Production: Capacity Building and Technical AssistanceIncreased Sales and Household IncomeCooperative Development and Bulk SalesInput Supplies and ServicesImprovements in QualityIncreased Market AccessMarket Milk/Nutrition Messages to SchoolchildrenInvestment by Local Entities
12 Production: Capacity Building and Technical Assistance Philippines400 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 priceFarmers producing 4-5 liters per day increased income by6-7.5%.Milk supply exceeded demand, resulting in introduction of paneer cheese, sales increased 15% in one month, 30% overallModest 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 costsFacilitates access to farm gate open marketFacilitates off-season salesVenue for training and technical assistance togetherStrength in numbers: Leverage sale priceEastern 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 fundsLOL facilitates local analysis of Yarlco feed shown as 90% satisfactory, & results used to improve qualityNinety (90) farmer-beneficiaries received new grass cuttings to plant for cattle fodder.
16 Improvements in Quality Training and capacity building from milk shed to consumerBetter quality means higher prices and incomesBetter quality expands markets for industry (domestic and international), increases revenues, and supports sustainabilityQuality enhancements aid nutritionPhilippines91 farmers trained on milk quality & testing standardsTwo 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 knowledgeNew channels including Telecom Jaffna, Jaffna Multipurpose Cooperative
18 Marketing Milk to School Children and Promoting Nutrition Messages Builds sustainable nutritionBuilds a socially responsible industryBuilds a responsive government that invests in peopleBuilds a market highly nutritious foodsBuilds a market for health and nutritionPhilippines:Milk and nutrition awareness through milk feeding programs and local press has targeted 35,000 parents & consumers320,000 school students will get rulers with milk nutrition awareness messages in 200811,000 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 partnersPresident 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 LOLBy 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.