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Raf Somers

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Traditional forage: Elephant grass (Pennisetum Purpureum) New ... Processing company: high appreciation! Want to intensify the collaboration with the project ... – PowerPoint PPT presentation

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Title: Raf Somers


1
Fair payment for dairy smallholders
  • Raf Somers
  • Vietnam Belgium Dairy Project

Nairobi, Kenya, August 2008
2
Content
  • Vietnam Belgium Dairy Project
  • Smallholder dairy farming in Vietnam
  • Importance of individual quality control
  • Our intervention around Hanoi, Vietnam
  • Lessons learned
  • Recommendations

3
Vietnam Belgium Dairy Project
  • Funded by Belgian and Vietnamese Government
  • Implemented by the Min. of Agriculture Rural
    Development of Vietnam, with assistance of the
    Belgian Technical Cooperation
  • Main activities
  • Increase productivity
  • Training of farmers
  • Introduce practical innovations
  • Strengthening Vet and AI services
  • Improve milk quality control and payment
  • Link Public and Private sector to enhance
    sustainable dairy development Dairy Vietnam
    (www.dairyvietnam.org.vn)

4
Smallholder dairying in Vietnam
HF HF cross breeds
Average farm size 5-10 animals
5
Cut and carry
Traditional forage Elephant grass (Pennisetum
Purpureum)
6
New Forages
Bracchiaria mutica
Australian Mix
Avena sativa
Panicum maximum
7
Innovations
Silage bags
Calf rearing practice
Sprinkler irrigation
Heat stress solutions
8
Milking
9
Milk Collection Center (MCC)
10
Milk transport to factory
11
Dairy Industry in Vietnam
  • Dairy smallholders produce more than 90 of the
    milk
  • The informal market is small (about 10)
  • Popular dairy products are flavored milk,
    yoghurts and ice cream
  • Self supply in Vietnam is only 20

12
Milk collection from smallholders
  • Dairy processors often struggle to collect the
    milk from smallholders
  • poor quality milk
  • small volume
  • scattered farms
  • difficult to do quality testing
  • Almost no functioning cooperatives
  • Smallholders often receive a group price
  • Collectors earn too much compared to the farmers

13
One price for the group
Farm
Milk collector
Farm
Processing Company
Milk Collection Center
Farm
Farm
Farm
Milk flow
Payment
14
Result of a group price
  • Farmers are not encouraged to produce good
    quality milk
  • Bad farmers cannot be identified
  • Penalties are shared among farmers
  • Milk collectors always take their collection
    fee
  • Relationship between farmer and collector often
    determines the milk price for each farmer

15
Our philosophy
  • Milk Quality can only improve if
  • Better quality milk receives a higher price
  • Quality is tested for each farm!

16
Stimulating growth!
  • Farmers are encouraged to produce better quality
    milk because of the better price
  • Actions to produce better quality will also
    result in better productivity!

17
Our intervention Phase 1
  • Create a WIN WIN situation
  • for all parties!
  • Collaborate with the processing companies
  • Install testing equipment in milk collection
    centers
  • Keep most of the milk collectors, but reduce
    their power!
  • From group price to individual price!

18
Individual price
  • Based on components of the milk (FAT, SNF)
  • Penalty for poor quality
  • high bacteria
  • antibiotic residue
  • Bonus for good practices
  • Farm evaluation
  • Low Somatic Cell Count

19
New equipment
  • Introducing IT solutions in the milk collection
    centers
  • Electronic scale
  • Milk analyzer
  • Smart cards
  • Microprocessor

We know the exact amount quality of each
farmer
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  • picture transfer milk from
  • milk can to scale

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Quality testing
  • Components of the milk (FAT, SNF, added water)
  • tested every delivery by milk analyzer
  • Bacteria (MBT), antibiotic residue (Delvo test)
  • tested every 14 days in the laboratory
  • Farm evaluation, somatic cell count (DCC)
  • every two months in the farm laboratory

BASIC PRICE
PENALTY
BONUS
29
Software
Laboratory data (BCC, SCC, AR)
Field data (Kg, Fat, SNF)
Farm Evaluation
Software
Individual payment for farmers
30
Payment to farmers
  • Bank transfer (farmers choice!)
  • Clear feedback
  • 2x per month
  • Bank get an insight in the creditability of
    farmers
  • Milk collectors only receive a collection
    fee!

31
Evaluation of Phase 1
  • Good farmers highly appreciate our system
  • Good milk price
  • Bonus for good farming practices
  • Fair and transparent
  • Clear feedback
  • Timely payment

Thanks, my dear
32
Evaluation Phase 1
  • Bad farmers
  • Angry when they receive individual penalty
  • Complain that penalty period is too long
  • Cannot receive bonus

33
Evaluation of Phase 1
  • Milk Collectors
  • Many are not so happy
  • Less profit than before
  • (before they could easily cheat!)
  • They do receive a very fair price, but many do
    not want to work honestly and they dont like to
    be controlled
  • Still allow bad quality milk to go into the bulk
    tank because they worry to lose farmers

Only the processing company can successfully
control the milk collectors!
34
Evaluation phase 1
  • Processing company high appreciation!
  • Want to intensify the collaboration with the
    project
  • Report that our milk quality is better than in
    other regions
  • They already apply the lessons learned
  • in other MCC
  • Individual testing
  • Individual payment

35
Evaluation Phase 1
  • However, some processing companies still
  • accept milk with added water
  • pay a too high price for
  • poor quality milk
  • Bad farmers and collectors can still easily
    sell their milk elsewhere.

Need for National Legislation!
36
Phase 2 Improvements
  • Put one quality control staff in each MCP
  • Collector does not perform quality
  • control anymore
  • Perform more tests in the MCC
  • Increase frequency of testing
  • For bacteria daily methylene blue test
  • For antibiotic residue daily fermenation test,
    confirmation by delvo or copan test
  • Reduce the penalty period

37
Repeatability?
  • The equipment is only a tool, the intentions are
    more important
  • individual testing
  • individual price
  • We want to set an example for
  • farmer organizations
  • processing companies
  • governments
  • Raise awareness about the need for
  • Transparent quality control
  • National legislation

38
Recommendations
  • 1. Companies should make sure that farmers
    understand the basics about milk quality
  • Milk composition (Fat, SNF, protein, ...)
  • Added water
  • Bacteria
  • Residues
  • Somatic cells

39
Recommendations
  • 2. Limit as much as possible the role of
    intermediates between farmers and processors
  • In Vietnam, we recommend that the processing
    company has a quality control staff in each MCC
  • 3. Always do a good acceptance test
  • inspection of milk can (material, cleanliness)
  • organoleptic test (look, smell)
  • density test (added water)
  • alcohol test (bacteria, colostrum)

40
Recommendations
  • 4. Basic tests can be done daily in the MCC
  • Bacteria dye reduction tests (Methylene Blue,
    resazurine)
  • Cheap but only a rough indication
  • Many false negatives! (This gives the wrong
    impression to farmers that the milk is good...)
  • TPC is much better, but needs to be done in a lab
    and takes a lot of time
  • Antibiotic residue fermentation test
  • cheap
  • best is to confirm positive result by Delvo or
    Copan test

41
Recommendations
  • 5. Milk composition
  • Basic milk analyzers can be
  • placed in MCC
  • close to farmer (transparent)
  • can detect added water easily
  • BUT they need a lot of maintenance and spare
    parts!
  • In many locations it might be better to test the
    composition once every 14 days in a central place
    or with a mobile unit.

42
Recommendations
  • 6. Somatic cell count
  • Interesting information for farmer!
  • Bonus for low SCC stimulates good hygiene
    practices
  • On farm CMT test (info about each quarter)
  • In the MCC DeLaval Cell Counter
  • exact number
  • relatively expensive per test (about 2 usd/test )
  • machine can be transported from MCC to MCC

43
Recommendations
  • 7. Penalty
  • Farmers should understand why they receive
    penalty
  • Farmers prefer more regular testing and shorter
    penalty period
  • Penalty should be balanced with bonus
  • Farmers and Collectors should receive penalty for
    their faults, not for someone else fault!

44
Recommendations
  • 8. Infrastructure in MCC
  • Many poor quality cooling tanks
  • Frequent power cuts
  • Consider cooling tanks with an ice bank
  • Short power cuts have no effect on quality
  • Milk cools down faster (below critical 10C)
  • Use cheaper electricity at night to make ice

45
Recommendations
  • 9. Cleaning protocol
  • Milk cans cooling tanks need to be cleaned
    following the 4 principles of good cleaning
  • Time
  • Temperature
  • Physical action
  • Chemicals
  • Acid to for protein
  • Alkaline detergent for fat

46
Useful websites
  • Dairy Vietnam
  • www.dairyvietnam.org.vn
  • A lot of info about the dairy sector in Vietnam
  • Free download of manuals including milking
    hygiene and milk quality control
  • APCHA
  • http//www.aphca.org/reference/dairy/chiangmai_wor
    kshop_feb08.html
  • Regional strategy for smallholder dairying in
    Asia
  • Many interesting country reports

47
Thank you for your attention !
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