CO-FUNDED BY : MFA-Finland Milk F or Your Health

AGRICORD PROJECT NO:5610 TWINNING SUPPORT TO WOMEN’S DAIRY COOPERATIVE,TANZANIA

IMPLEMENTING ORGANIZATION FINNISH TWINNING PARTNER

PRE AMBLEThe twinning project aims at capacity building of the Kalali Women’s Dairy Cooperative Society located in Machame, Moshi, Kilimanjaro region, Tanzania. The cooperative produces milk, butter, cheese, and other products. The development targets are focused on the three capacity sectors of improving human resources, raising the production of milk and animals, and improving the markets for the goods. The start-up twinning project was planned to support the Kalali women’s dairy cooperative in establishing a profitable dairy business, increasing incomes of its members and supporting its organizational development towards improved business orientation. Support will involve development of marketing channels and targeted capacity building to enable producers and products to respond better to market demand. Long-term Overall ObjectiveRural women operate and manage profitable cooperative dairy business that provides sustainable income to their poor members. First year Project PurposeKalali Women’s Dairy Cooperative has developed towards improved business orientation and established a profitable business for their dairy products, which has increased members’ incomes



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011Results Achieved

-Members average income is still Tshs. 80,921 per month for the six months of project. Regardless the fact

that an increment of Tshs 20/= of price of raw milk was increased from former 480/= to 500/= in April, Yet it

was not significant to rise members income as still the average daily milk bought to members is still low

-The average amount of milk received daily in the Coop is 520 litters for the six months of the project as

compared to 425litres in baseline information. This has been 95litres increase per day which is 22% increase

of milk delivered to the Coop per day. However average milk delivered per member was still 5.5 litres per

day.




-Number of members/farmers delivering milk daily to the Cooperative has risen to from 76 in baseline to 95

persons todate which is 25% increase in number of members/farmers delivering milk to the coop.

-Dairy Products Turnover for six months of the project is Tshs. 64,367,780.00 as compared to Tshs94milion

annual baseline turnover. The turnover growth rate is 36.5% for the first six months.

-Contribution margin analysis has been done. Tailored to this will enhance our marketing strategies (Pricing,

Sales mix). Also it will enhance our cost consciousness altitude which is a fundamental role of improving our

profitable business orientation.




-The latest financial report has been discussed quarterly

-Annual budget for the year 2011 has been prepared and approved by the board

-A start up process for getting a computerized accounting system

-Members participated in extension systems with multiple systems

-Members receive improved inputs through KWDCS initiated programmes



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011Activities Implemented

Purchase of Laptop, Internet and printer

1 brand new HP Laptop, a modem and all-in-one HP Printer series

Package development; new logo

A new logo has been developed which using Euro 644

Marketing materials

We have printed a total of 300 T-shirts including 50 for school pupils using Euro 745



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011Activities Implemented

Purchasing of laboratory Equipment

1 Littre of Alcohol, Lactometer, Thermometer, Portable PH Meter, Test tubes, Droppers using Euro 235

Milk production of cattle

1 Dairy Cattle Husbandry Guide in English and Swahili has been developed using Euro 200. Copies will be

made for our member/farmers

Managers salary for 2 ½ months

Salaries have been paid to the manager for 21/2 months using Euro 1041



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011 Activities not Undertaken as planned

Purchase of Desktop computer and Digital Camera

We also purchased new Dell desktop computer and new Sony Digital camera using Euro .This was because

we saw the budget for Laptop and internet could accommodate this hence desktop will be used for back up

and installation of a computerized accounting system. The digital camera will support pictorial reporting

during training, study tours and marketing events i.e trade fair. We accounted for this activity in the budget

line for Laptop, internet and printer.




Package development; new labels

The status of this is still on the sourcing the designer no contract has been made so we have initiated efforts

Quality Milk processing

The status of this is still on the sourcing the dairy technologist/Food Production scientist, we are prospecting

to work with specialist from Sokoine University of Agriculture




Product development

The status of this is still on the sourcing the Fabricators and sellers of Yoghurt plant in our neighborhood

country..



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011 Conclusions/Consequences

The second period of the project as summarized above had a lot done. It was in practice almost the first time

for our team to implement the twinning project activities. Primarily our team was in transition during this

period from team forming to storming. However necessary steps have been taken by the team with the

support from the stakeholders from SNV and HAI-Local Government Authority to make sure the team moves

to the norming stage. Trainings to members would have facilitated understanding on group dynamics, self

development, conflict management and self development. Training then will be realized in the third quarter

of project as SNV had accomplished engagement of Local Capacity Builder (LCB) to facilitate this.



PROJECT IMPLEMENTATION FROM JAN-JUNE,2011Recommendations

Out of the experience of this phase of project implementation it is advised most activities were not

implemented in time. We recommend that after sharing the work plan necessary correspondence is to be

channeled so that funds for implementation of the next period are realized within the actual/practical

project period which we are reporting

Also stakeholders of the project as we worked together in managing a team transition stage we

should cement and reinforce activities and altitude that promotes the positive movement of the team. This

is because unless necessary measures are taken as a group the previous storming stage can persist.



WAY FOWARDAreas for next project

PROCESSING Production Efficiency / Cost Reduction / Quality Management• Consultancy services for assistance in diagnosing and correcting production / efficiency problems.• Cost reduction.• Improved quality assurance and control programmes.• Installation of quality management systems.• Improved production management.• Improved production systems (Process Flow and Improved Equipments-Pasteurizer).• Preparation of Manuals.• Alternative sources of raw materials and energy (Heat)Quality Certification, e.g. TBS,ISO, HACCP• Consultant fees and expenses.• Preparation of Manuals.




MARKETINGAdvertising.Trade advertising and promotion.• Consumer advertising.• Brand promotion.• Public relations campaigns.• Press releases.• Point-of-sale material.(Milk Bars in Moshi and Arusha)• In store displays and demonstrations..Direct mail campaigns.• Space / media costs• Labeling.• Bar coding.




MARKETING

Distribution Channel

-Identification of market representatives/agents.

-Improving channels by acquiring Tri-cycles (Alfa Cargo)

- Leasing / renting shops & milk bars

- Development of new agency contracts.




MARKETINGTrade Fairs

• Airfares/Bus fares and per diems.

• Space rental charges.

• Participation charges.

• Stand design and construction.

• Stand decoration and display materials.

• Catalogue entry expenses.

• Transport of samples to / from exhibitions

.




MARKETINGTrade Fairs

• Airfares/Bus fares and per diems.

• Space rental charges.

• Participation charges.

• Stand design and construction.

• Stand decoration and display materials.

• Catalogue entry expenses.

• Transport of samples to / from exhibitions

.




SUPPLY CHAIN MANAGEMENT

. “AI” expert and facilities

. Cooling Tanks

. Special Tri-cycles to deliver milk from collection centres

.




HUMAN RESOURCES DEVELOPMENT

- Participation in approved technical and management training courses.

- Design and implementation of cooperative specific training.

-Consultancy services

- Preparation of training materials.

.




FINANCIAL MANAGEMENT-Computerized Accounting system (QuickBooks)

.



CHARTS SHOWING VARIOUS PROJECT DELIVERABLES

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Documents

CO-FUNDED BY : MFA-Finland Milk F or Your Health