Strengthening Cooperatives to Promote Trade and Market Access

Land O’Lakes’ Deep Cooperative and Rural Roots

- Member-owned‒ Organized in 1921 as a dairy marketing cooperative

- Expanded into farm inputs‒ Late 1920s, at our members’ request

- Now a fully diversified agribusiness‒ Business Development Services‒ Innovation and Market Research‒ Global Reach and Access to New Markets

Farm-to-Market Spectrum

The Bigger Picture

Second-largest farmer-owned agricultural cooperative in the U.S. with $14 billion in annual sales in 2012.

Products and seed wholesale, pioneered the Answer Plot® approach and #1 in crop protection and seed wholesales.

Dairy foods develops milk powder, whey, butter, cheese and other dairy products. Created the quarter-stick of butter.

Ranks first in livestock feed and animal milk replacers in the U.S.

Part of Corporate Social Responsibility Arm. Operates like a not-for-profit. Over 30 year history.

Who We Are

- Division of Land O’Lakes, Inc. founded in 1981- Our mission is to help farmers around the

world improve incomes and quality of life- Leverage corporate experience and expertise- Part of Land O’Lakes Corporate Social

Responsibility Program- Programs primarily funded by USAID and USDA

Where We Work- Since 1981, we have implemented 275+ projects in 76

countries

− 100,000 rural households supported− 21,000 jobs created/strengthened− 42,000 farmers adopted new

technologies− 64,000 received technical

assistance/food security training− 40,000 use improved

health/nutrition services− 61,000 producer group members

supported− 22,000 rural households adapted to

better natural resource management techniques

2012 Results and Impact

Promoting Access to Trade and Markets in Kenya and Uganda

- USAID Kenya Dairy Sector Competitiveness Program (KDSCP)- 5-year, $9 million program that closed in 2013 and impacted

338,000 households by increasing smallholder incomes by over 200 percent

- Cooperative Development Program (CDP)- 5-year program funded by USAID- Designed to help cooperatives become more competitive,

increase their revenues and profits, and expand the benefits they provide to farmer-members

- Potential to expand to Rwanda and Bangladesh

KDSCP Implementation Approach

KDSCP Approach Led to Big Impact

- Milk purchased from smallholders increased by 105 MT and $180 million

- Volume of milk conforming to quality standards increased by 140 percent

- Resourced $28 million in non-project funds- 135 producer organizations strengthened- More than 1,000 firms now providing new

business services to producers- 155,000 producers received short-term training

CDP’s Focus on Vertical Integration

- Key components:- Quality management- Member relationship- Governance: board and management interaction- Patronage and member loyalty

- In the next two years, the program expects to show:- 25 percent increase in household income for members of

vertically integrated dairy cooperatives- 25 percent increase in revenue for vertically integrated

cooperatives

Dairy Development In Uganda and Kenya

Capacity Building Approach

- Value addition and quality to final product

- Link members to services

- Ensure transparency for members, including record keeping and communications

- Focus on strong, fair leadership and governance

Accessing Markets

‒ Support set-up of management information systems for efficiencies to deal with internal and external customers

‒ Capacity building of cooperatives on the law of contract and providing guidelines on developing win-win contracts

‒ Support in implementation of HACCP systems; achieve ISO certification in food and safety management makes it easy for them to get contracts

Accessing Markets

‒ Create and support forums for players to meet and make business deals, breeders shows, trade fairs, field days, exhibitions etc.

‒ Stimulate demand for products and services (e.g. - milk consumption campaigns)

‒ Product development and branding of products

‒ Support cooperatives to lobby government to create enabling business environment (e.g. -review of policies that stifle trade)

Learn More

- Visit our Website: www.idd.landolakes.com

- Follow us on Facebook: www.facebook.com/LandOLakesInternationalDevelopment

- Follow us on Twitter: @LandOLakesIDD