ICDD Annual Thematic Conference Faisalabad, Oct 19 – 21, 2011

The urban dairy value chain: a promoter of development and decent jobs in Asia and Africa Eva Schlecht & Muhammad Younas University of Kassel and University of Göttingen, Germany University of Agriculture Faisalabad, Pakistan

Global and regional production of cow and buffalo milk

Fresh milk (106 liters) Millions

Buffalo milk 2000

Buffalo milk 2009

Cow milk 2000

Cow milk 2009

600

500

400

300

200

100

0 World

Africa

Asia

India

Pakistan FAOSTAT 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Global and regional milk yield per dairy animal Buffalo milk 2000

Buffalo milk 2009

Cow milk 2000

Cow milk 2009

Milk (kg / animal / year)

2500

2000

1500

1000

500

0

Overview

World

Africa

Urban dairy

Value chain

Asia

Jobs

India

Conditions

Outlook

Pakistan

FAOSTAT 2011

Recent development of dairy production in Pakistan 20% of milk from (peri-)urban producers!

FAOSTAT 2010

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Global and regional supply of milk and milk products

Supply of milk products (g/person/day)

500 Butter, Ghee

Cheese

Milk, fresh

400

300

200

100

0 2000

2007

World

2000

2007

Africa

2000

2007

Asia

2000

2007

India

2000

2007

Pakistan FAOSTAT 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy – advantages for producers

Good infrastructure

Markets for concentrates, mineral licks, veterinary services...

Low input prices

Closeness to customers

High milk prices

High population density Labour availability

Overview

Urban dairy

Value chain

Jobs

Conditions

Cheap labour

Outlook

Price variation for raw milk in Faisalabad, summer 2009 50

c

abc*

Milk price (PKR liter -1)

c 40

c

ab

b a

30

20

10

0 Dhodi (n=31)

Neighbour (n=25)

Other (n=1)

Dhodi (n=68)

Buffalo milk

Neighbour (n=25)

Other (n=3)

Mixed milk

Urban dairy

Value chain

Cow milk Hagmann 2011

* Significant differences, Mann-Whitney-U-Test, a=0.05

Overview

Dhodi (n=3)

Jobs

Conditions

Outlook

Some insights into raw milk sale in Faisalabad • 98% of urban farmers sell milk • 97% sell mixed milk (cattle and buffalo) • 77% of produced milk is sold (range: 0 to 98%) • Prices in 2009: 30 - 46 PKR l-1 (buffalo), 25 - 48 PKR l-1 (mixed) • Influences on prices – Geographical location: no – Quality: partly – Season (less milk in summer): partly • 19% report seasonal difference • prices in summer ca. 7% higher than in winter

– Client / marketing skills: yes Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy – the problem of roughage availability

Data from Faisalabad; Moaeen-ud-Din & Babar 2006

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Oxytocin-treated animals (%)

Urban dairy – the excessive use of veterinary products

60 50 40 30 20 10 0 Cattle

Buffaloes

Data from Faisalabad; Tariq & Schlecht 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy – the problem of milk hygiene Bacterial contamination levels of milk collected in Sikasso (Mali, W-Africa) -1

Geometric mean MPN 100 ml

Milk quality

Milk

n

Faecal coliforms

E. coli

Fresh

5

3.9 x 104

9.7 x 105

Curdled

4

6.2 x 106

49.7 x 105

MPN: most probable number; cfu: colony-forming unit.

WHO threshold for E. coli: ≤10 cfu ml-1

Sources of contamination: • Animals (diseases) • Milk hygiene at farm (milkier, milking, containers) • Milk processing procedure Amadou et al. 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy – the problem of dung disposal Data from Faisalabad; Hagmann 2011

51% Fuel

40% Waste • Odor

Overview

• Emissions

• Soil degradation

• Leaching

• Emissions

• Diseases

• Health problems

Urban dairy

Value chain

Jobs

28% Fields

Conditions

Outlook

Urban dairy production – the value chains Fodder production Harvest Transport to market

Feeding, watering

Milk sale/processing

Milking

Animal sale

Fodder marketing

Transport to barn

Overview

Urban dairy

Cleaning, washing

Fodder chopping

Value chain

Jobs

Conditions

Outlook

Dung processing/sale

Urban dairy production – jobs along the value chain

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy production – jobs along the value chain

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Gender repartition of jobs at dairy barns in Faisalabad

Hagmann 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Educational level of urban dairy farmers in Faisalabad

Hagmann 2011

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy production – jobs along the value chain

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Jobs along the urban milk marketing schemes in Kenya • Dairy sector accounts for:

3.5% of Kenya’s GNP ~14% of Kenya’s agricultural GDP

• >660,000 farm household livelihoods • •

365,000 farm jobs for external labour 40,000 jobs in milk processing activities 70% of the jobs in milk processing are in the informal sector, mostly in (peri-)urban areas

Staal et al. 2001

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Jobs along the urban milk marketing schemes in Kenya Raw milk = 80% of milk produced

Milk Bars

Pasteurized milk

Chai mamas CONSUMERS

DAIRY FARM

Primary Traders

60% of marketed milk is transported by hawkers

Formal processors Berem 2010

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Urban dairy production – jobs along the value chain

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

Requirements for educated labour along the dairy value chain Dairy value chain requires mostly unskilled labour  low wages

Fodder supply chain

Dairy barn

Milk delivery

yes

yes

yes

Unskilled labour Trained labour

yes

Educated labour

Overview

Urban dairy

Milk processing

vets

Value chain

Jobs

Conditions

sometimes

Outlook

Schematic assessment of working conditions Problematic conditions on the supply side (field/barn); better conditions on the delivery side (processing/marketing) Fodder supply chain

Dairy barn

Milk delivery

Milk processing

Physically easy

no

no

maybe

quite ok

Physically safe

no

no

maybe

depends

Hygienically safe

depends

no

acceptable

quite ok

Acceptable working hours (timing / duration)

depends

no

depends

depends

Days off / vaccation

?

?

?

?

Social security schemes

no

no

?

?

Conditions

Outlook

Overview

Urban dairy

Value chain

Jobs

Urban dairy production – outlook Urban dairy value chains

numerous jobs for unskilled labour low wages difficult working conditions

  

Modernizing milk production & marketing (Western models) will: - increase demand for trained / educated labour - improve working conditions - reduce jobs at barn, milk transport & processing levels  Initiate dairy farmer cooperatives / producer associations to: - harmonize milk production & quality (self-controlled standards) - rise competitiveness of small/medium farms towards companies - secure adequate milk prices - successfully negotiate with city planners, real estate investors…  Maintain jobs and improve income along the value chains

  

Urban dairy production – probable fields of research Along the different value chains: • Income of farmers, entrepreneurs and labourers

so far very limited insights

• Working conditions, gender aspects

• How useful are biogas digesters for (peri-)urban dairy households, and how would they impact on dung collectors? • What happens as cities grow, and rural farmers become urban?

Overview

Urban dairy

Value chain

Jobs

Conditions

Outlook

THANK YOU For data and pictures: MSc. H. Amadou; Prof. Dr. A. Bürkert; MSc. J. Hagmann; MSc. M. Tariq