1. Design Criteria
1. The main challenge for the SDD strategy is to craft an investment plan that will be implemented for the benefit of Asia’s millions of actual and potential smallholder dairy operators, and the consumers they supply; and to action the strategy for use in country situations. At this stage it is only feasible to draft an outline that focuses on immediate activities, some of which stakeholders have committed to. The detailed investment programme will be finalised towards the end of 2008 and will depend on the interest of individual Governments and the appeal of the strategy to investors from the private sector, regional and sub-regional organizations such as ASEAN, SAARC and the International Financing Institutions (IFIs), Regional Financing Institutions (RFIs) and International Agencies.
2. The foundation of the indicative Investment and Implementation Plan (IIP) is based on the SDD Strategy. For practical reasons common design criteria are used for framing its components. A ten year timeframe is adopted spanning 2009 to 2018, though some activities will start immediately in 2008. SDD involves investments in livestock and dairy chain infrastructure, which take time to achieve critical mass, especially for new entrants, who may have to borrow capital to build their enterprises. The IIP is divided into regional and country level sub-programmes, which will be implemented in parallel for optimum impact. A dual track approach will be used with immediate and longer-term interventions. While the IIP has been reviewed and adopted by the Chiang Mai workshop delegates, it will be necessary to develop the proposed investments into detailed, fully costed project proposals in collaboration with potential investment partners. An immediate action plan covering this process for the remainder of 2008 is set out in annex 1.
3. In essence the SDD Strategy and the IIP must be practical, bankable and actionable; it must be a roadmap to enable localized, targeted and tailored investment approaches.
2. Main components
2.1 Sub-programme 1: Regional Investment and Implementation Programme
4. The Regional IIP-1 consists in the main of interventions for immediate implementation to support the preparation of country level activities (IIP-2) and includes the following components. The indicative budget is US$ 10 million.
IIP-1.1: DairyAsia Knowledge Centre and Information Network
(could be combined with IIP-1.2 and IIP-1.3)24
Starting date: | immediate (April 2008) |
Duration: | 3 years; then self-financing |
Objective: | Sharing knowledge and information about SDD in Asia among Asian countries |
Description: | Network is being set up immediately, initially hosted and funded by APHCA; later transferred to Asia Dairy Association/Asia SDD Centre (see below) |
Budget: | US$ 60 000; APHCA has committed US$ 20 000 annually for the next three years to establish the network; after which it will be funded by those countries who find it useful and the proposed Asia Dairy Association |
Implementer: | APHCA Secretariat and FAO-RAP |
IIP-1.2: SDD Regional Centre Project
(could be combined with IIP-1.1 and IIP-1.3)
Starting date: | January 2009 |
Duration: | 5 years |
Objective: | Establishing a regional a SDD-focused capacity building and support facility at the vocational Dairy Training Centre in Chiang Mai. |
Description: | The Department of Livestock Development, Ministry of Agriculture and Cooperatives of the Thailand Government has offered the Centre as a SDD hub for the region. Thailand and Chiang Mai are convenient because of their central location in the region and comprehensive network of communications, transport facilities and hospitality. |
Budget: | US$ 5 million; Government of Thailand Trust Fund (others – ASEAN, EU) |
Implementer: | DLD/Thailand, APHCA and FAO |
IIP-1.3: Dairy Asian Association (DAA) Project
(could be combined with IIP-1.1 and IIP-1.2)
Starting date: | January 2009 |
Duration: | 3 years |
Objective: | Setting up a demand-driven regional dairy group |
Description: | Will have a small secretariat combined with/based at the Chiang Mai Regional SDD Centre. The membership base will include Asian dairy firms, dairy institutions, supporting service industries and suppliers, who would fund the DAA. Tentative outputs for the DAA are:
|
Budget: | US$ 2 million; funding opportunities to be explored through various funding mechanisms |
Implementer: | ASEAN and FAO |
IIP-1.4: Greenhouse Gas Emissions and SDD Project
Starting date: | January 2009 |
Duration: | 4 years |
Objective: | Exploring ways and means of mitigating the effect of SDD on greenhouse gas emission |
Description: | Collaborative “action research” project with Bangladesh (Grameen Bank), China (Mengniu), India (National Dairy Development Board) and FAO-AGAL/RAP.Tentative outputs:
|
Budget: | US$ 2 million (GEF/FAO Trust Fund) |
Implementer: | Concerned country organizations and FAO/AGAP, AGAL and RAP |
IIP-1.5: Unidentified Projects:
Starting date: | 2009 to 2013 |
Duration: | 3 to 5 years |
Objective: | Support SDD at regional level |
Budget: | US$ .94 million (ASEAN, SAARC, RFIs, IFIs, Governments, international/bi-lateral development agencies, APO, private sector etc) |
2.2 Sub-programme 2: Country Investment and Implementation Programme
5. The country level IIP-2 will depend to some extent on the finalisation of the IIP-1 sub-programme and on the interest of the IFIs/RFIs and regional trading blocks, e.g. ASEAN, SAARC, Governments, International/Bilateral Development Agencies and the private sector in actioning and financing the strategy at regional and national level. The indicative budget is US$ 240 million. The IIP-2 will include,inter alia, the following components:
IIP-2.1: Rapid Smallholder Milk Production Productivity and Quality Improvement Project
Countries: | Afghanistan, Bangladesh, Iran, Mongolia, Myanmar, Nepal, Philippines |
Starting date: | Immediate (April 2008) |
Duration: | 3 years (2008-2010) |
Objective: | Improving the productivity of milk animals through enhanced: (i) dairy animal feeding; (ii) dairy breed improvement and (iii) milk quality through dairy training |
Description: | Includes on going and pipeline country level projects |
Budget: | US$ 5 million (10 projects up to US$ 500 000 per project), initially through the FAO Trust Fund and Technical Cooperation Programme (TCP) facility (see table below). FAO will also work to mobilise funding, programmes and projects from non-FAO sources, e.g. project in Afghanistan, Bangladesh, Iran, Mongolia, Myanmar, Nepal, DPR Korea, Philippines. |
Implementer: | Concerned country organizations and FAO |
Country | Project Title | Budget (million) | Status |
Afghanistan | Development of Integrated Dairy Schemes | $1.85 | on-going |
Bangladesh | Community Livestock and Dairy Development | $1.10 | recently finished |
Bangladesh | Dairy Cattle Improvement Programme | $0.38 | being finalised |
Iran | Smallholder Dairy Development | $0.45 | being drafted |
Mongolia | Fodder production, conservation/processing for milk/meat production | $0.40 | on-going |
Mongolia | Modernizing and upgrading the national animal breeding programme | $0.40 | on-going |
Mongolia | Increasing Dairy Supplies in Mongolia through Reducing Post-harvest losses and Restocking | $1.85 | 2ndphase |
Myanmar | Dairy Cattle Improvement | $0.36 | on-going |
Nepal | Technical Assistance to the Community Livestock Development Project (CLDP) | $2.20 | on-going |
Nepal | Small-scale dairy training | $0.37 | on-going |
Nepal | Dairy Cattle Improvement | $0.37 | being finalised |
Pakistan | Up-scaling Dairy Development | $0.35 | just finalised |
Philippines | Capacity Building for Small-Scale Dairy Sector | $0.37 | on-going |
Total | $10.50 |
IIP-2.2: Enhancing nutrition and livelihoods through school milk programmes linked to smallholder dairy operators
Countries: | Bangladesh, Myanmar, Viet Nam |
Starting date: | January 2009 |
Duration: | 3 years |
Objective: | Enhancing school-age child nutrition through increased dairy consumption while assuring and increasing livelihoods of local dairy producers and interested local entrepreneurs. |
Description: | Pilot sub-regional project to develop a regional Asian milk advocacy programme for improved health and nutrition under the Asia SDD Strategy slogan -A glass of Asian milk a day for every Asian child.Tentative outputs are:
|
Budget: | US$ 450 000 (FAO-TCP) |
Implementer: | Concerned country organizations and FAO |
IIP-2.3: | Piloting national SDD action plans |
Countries: | Bangladesh, Myanmar, Sri Lanka, Thailand (selected by CFC) |
Starting date: | June 2008 |
Duration: | 1 year (2008-2009) |
Objective: | Formulating procedures for including SDD in national programmes in the context of context of supporting achievement of the hunger and poverty MDGs |
Description: | Providing tailored technical and policy assistance to countries at the local and strategic development level to: (i) promote SDD advocacy and policy engagement, (ii) prepare national actions plans to include SDD in national policies, plans and development programmes and (iii) identify entry points for donor intervention in supporting SDD. The tentative outcomes of the project are:
|
Budget: | US$ 50 000 |
Implementer: | Concerned country organizations, CFC, other donors and FAO |
IIP-2.4: Smallholder Dairy Competiveness and Markets Access Country Level Projects
(could be combined with IIP-1.1, IIP-1.2 and IIP-1.3)
Countries: | Those countries above with SDD action plans |
Starting date: | June 2009 |
Duration: | 5 years |
Objective: | Developing and implementing country level SDD action plans |
Description: | Empowering smallholders by improving livelihoods through competitive production and marketing of high value added, diversified milk and dairy products. Tentative outputs are:
|
Budget: | US$ 4.5 million |
Implementer: | Concerned country public and private organizations, CFC, and FAO |
IIP-2.5: Expansion of activities related to Dairy Policy Development and Smallholder Dairy Competiveness/ Markets Access Country Level Projects
Countries: | Those countries with SDD action plans |
Starting date: | June 2009 |
Duration: | 5 years |
Objective: | Developing and implementing country level SDD action plans |
Description: | Empowering smallholders by improving livelihoods through competitive production and marketing of high value added, diversified milk and dairy products. |
Budget: | US$ 200 million |
Implementer: | Concerned country public and private organizations, NGOs, IFI/RFIs and FAO |
IIP-2.6: Unidentified Projects
Starting date: | 2009 to 2013 |
Duration: | 3 to 8 years |
Objective: | Actioning SDD and school milk schemes in 20 countries |
Budget: | US$ 30 million (private sector, Governments, IFIs, RFIs, ASEAN, SAARC, RFIs, IFIs international/bi-lateral development agencies etc) |
2.3 IIP Summary and Timeframe
6. The IIP is summarised below and outlined in more detail in annex 2.
Projects | Indicative Budget(US$ million) | Implementation Plan (2008-2018) | |||||||||||
08 | 09 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | |||
Sub-programme 1: Regional Investment and Implementation Programme (IIP-1) | |||||||||||||
1.1 | *DairyAsia information network | 0.06 | |||||||||||
1.2 | SDD regional centre, Thailand | 5.00 | |||||||||||
1.3 | Dairy Asia Association | 2.00 | |||||||||||
1.4 | SDD greenhouse gas emission | 2.00 | |||||||||||
1.5 | Unidentified | 5.94 | |||||||||||
Sub-total | 10.00 | ||||||||||||
Sub-programme 2: Country Investment and Implementation Programme (IIP-2) | |||||||||||||
2.1 | *Rapid SDD milk productivity projects | 10.50 | |||||||||||
2.2 | *Pilot school milk | 0.45 | |||||||||||
2.3 | *Piloting National SDD Action Plans | 0.05 | |||||||||||
2.4 | *National SDD action plans | 4.50 | |||||||||||
2.5 | SDD country project � 20 countries | 200.00 | |||||||||||
2.6 | Unidentified | 24.50 | |||||||||||
Sub-total | 240.00 | ||||||||||||
Total | 250.00 |
* Funding agreed in principle
2.4 Monitoring and Evaluation
7. Implementation of the Asia SDD Strategy will initially be guided and monitored by an APHCA Asia Dairy Task Force, facilitated by FAO and other involved organizations operating in the region. Later, as movement builds for SDD in Asia, the task will be taken over by the proposed DAA. The Task Force would initially be funded by APHCA (first three years), then by the proposed CFC/FAO pilot regional project (years four and five) and thereafter by the DAA. Task Force members are drawn from a broad constituency of public, private and NGO SDD stakeholders who attended the Chiang Mai workshop as indicated below, who have signified their willingness to participate. The Chair will be elected by members for two-year periods.
(1) | China | Board Chairman, Inner Mongolia Mengniu Dairy Industry (Group) Co Ltd., Hohhot |
(2) | India | Senior General Manager, Corporate Services, National Dairy Development Board, Anand |
(3) | Pakistan | Head of Milk Collection and Agri Services, Haleeb Foods, Lahore |
(4) | Philippines | Former Administrator, National Dairy Authority, Manila |
(5) | Thailand | Head Livestock products, Department of Livestock Development, Ministry of Agriculture and Cooperative, Bangkok |
(6) | FAO | Regional Livestock Policy Officer, Regional Office for Asia and the Pacific |
8. Membership is intentionally limited to streamline meeting business and, to the extent possible, is gender-balanced. However, the option is kept to co-opt additional members with specialised expertise on an ad-hoc basis as and when needed. Outline terms of reference for the Task Force are:
9. In addition to the standard performance monitoring and evaluation built into each IIP programme/project, FAO and APHCA will develop an M&E system, based on the strategy logframe (annex 3), to assess the overall performance and impact of the strategy and the IIP. A mid-term review of the IIP will be carried out during year four to review progress to determine the scope in interventions for the remaining IIP period.
24The first three projects (IIP-1.1, IIP-1.2 and IIP-1.3) could be combined under one umbrella project - see project proposal IIP-2.4 below.