Presented by Iain Wright at the CGIAR Research Program on Livestock and Fish Planning meeting, Nairobi, 27-29 September 2011

1. Update on smallholder dairy value chain
development in India
Iain Wright (ILRI)
CGIAR Research Program on Livestock and Fish
Planning Meeting
ILRI Nairobi
28 September 2011

2. Smallholder Dairy Value Chains in India

3. • Population; 1.2 billion
• One third of the global target population of CRP3.7 lives in
India
• One third of the world’s undernourished children live in India
• Government of India defines (rural) poverty as living on less
than Rs 26 per day (57 US cents per day)
• If some of the States in India were countries they would be in
the poorest 20 countries in the world (e.g. Bihar, Pop 90M, 6th
poorest)
• Half the population is vegetarian so milk is a key source of
protein, minerals, vitamins
• India is the largest milk producer in the world
• 15 million new mobile phones are sold in India every month

4. Opportunities
• Rapidly growing demand for milk
• 70 million rural HHs involved in milk production
• 70% of labour provided by women
• SH Dairy has demonstrable ability to reduce poverty
• Strong government support (National and State)
• Considerable private sector interest and growing
investment
• Growing credibility of ILRI in India

5. Projected milk demand
Milk prices are increasing
at 20% per annum

6. Opportunities
• Rapidly growing demand
• 70 million rural HHs involved in milk production
• 70% of labour provided by women
• SH dairy has demonstrable ability to reduce poverty
• Strong government support - NDDP
• Considerable private sector interest and growing
investment
• Growing credibility of ILRI in India
• Technically competent NARS

7. Challenges
• Small herd size – how to support millions of SHs?
• Weak and uncoordinated input services and supplies
• Low yield – 3.6kg/day; local cattle 1.97kg/day; buffalo 4.4kg/day
• Poor genetics - only 12% crossbred
• No systematic performance recording in breeding programmes
• Feed shortage
• Variable animal health services
• Very weak extension services
• 80% of marketed milk is informally traded
• Poor infrastructure
• Government wedded to cooperative model
• Poor policy environment for private sector input suppliers
• Poor coordination among agencies (including research agencies)
• Environmental impact of dairy sector

8. Recent and current projects
• Macro level studies of dairy sector in India (+ other countries for PPLPI)
• Comprehensive assessment of the dairy sector in Assam
• Review of livestock sector services in India (for WB)
• Generating evidence to support enhanced traditional dairying in India (new project)
• Value chain model for bio-ethanol production from sweet sorghum in rainfed areas through
collective action and partnership
• Improving post rainy sorghum varieties to meet the growing grain and fodder demand in
India
• Trade offs in use of crop residues (SLP studies)
• Cereal system initiative for South Asia (CSISA)
• Analysis of fodder markers in Bihar
• Sustainable intensification of smallholder maize-livestock farming systems in hill areas of
South Asia
• Enhancing dairy-based livelihoods in India and Tanzania through feed innovation and value
chain development approaches (new project)
• Economic Impact of FMD and its control in the dairy and meat value chains of selected high
potential regions in India: A pilot study
• Enhancing livelihoods through livestock knowledge systems
• Review of ICTs in information delivery to livestock farmers

9. Target States
Assam
Humid, milk deficit state, ILRI has good
institutional linkages
Bihar
Semi-humid, lack of previous investment,
renewed interest in dairy development,
potential link to CRP1.2
Andhra Pradesh
Dryland, (general policy to develop agric
in dryland areas), lot of private sector
interest, potential link to CRP1.1

10. Impact Pathway
• Work with R&D partners to identify research
question priorities along VC
• Pilot VC interventions with partners
• Scale out through development partners and
other stakeholders
• Continual engagement with stakeholders

11. Resource Mobilization/Pipeline
projects
• CSISA Phase 2 (BMGF/USAID)
• Enhancing the traditional milk value chain in
Assam (World Bank/ Gov of Assam)
• Building animal health economics in India
(ICAR)
• Developing mobile telephony services to the
dairy sector in India (mFARMER; GSMA)
• Livestock value chains in Bihar and Orissa
(BMGF?)

12. Engagement as CRP 3.7
• Limited engagement as CRP3.7
• ICAR involved in stakeholder meetings in design
phase
• Initial meeting with GoI Dept of Animal
Husbandry, Dairy and Fisheries
• Informed Dairy Development Department, and
Dept of Veterinary and Animal Husbandry in
Assam
• Preliminary discussions with private dairy in
Andhra Pradesh

13. Key Partners
National Assam Bihar Andhra Pradesh
ICAR Assam Agric Univ ICAR Eastern Region Anim Husb Dept*
Dept of Anim Husb Dairy Development Bihar Vet College* Dodla Dairy*
and Dairying Dept
NDDB* Animal Husb Dept Anim Husb Dept*
BAIF World Bank AACP Bihar Milk
Federation*
BASIX FARMS (USAID)*
* New partner
Development partners providing uptake pathways
Potential new partners will emerge in each State as the Sectorial and VC analysis
are undertaken

14. Potential outcomes
2012 2013 2014
VC stakeholders engaged in Development partners Decision makers aware of
discussions on priority focusing intervention implications of trade offs in
interventions based on initial activities based on VC use of crop residues and
VC assessments assessments recognize role of crop
residues in feeding systems
More effective , efficient and Development partners Increased capacity in
safe traditional milk promoting new crop-residue economic assessment of
marketing systems based feeding systems disease impacts and cost
effectiveness analysis
New improved food-feed New ICT based systems for
crops grown knowledge on milk
production and marketing
implemented.
New training programmes on
animal feeding being
delivered

15. Staff
• Iain Wright (20%)
• Nils Teufel (100%)
• Arindam Samaddar (100%)
• Nutritionist (100%)
• Paulo Ficarelli (70%)
• Ram Deka (17%)
• Michael Blummel (?)
• Amare Hailslasse (?)