Land O Lakes solution focuses on sustainability and innovation in partnership building and service
facilitation. KDSCP uses service provision as an entry point in small enterprise development and
targets a range of market providers as critical players. The approach facilitates viable linkages
between industry associations, processors, smallholder business organizations (SBOs), and
commercial input and service providers to build robust, sustainable partnerships and achieve
economies of scale.
The program does so via a selection of local facilitators contracted in the short term to strengthen
SBOs, producer organizations, processors and other service providers as commercial sustainable
business: and to build a durable commercial market for services and inputs for the longer term. This
is done with a strong understanding of the sector and the incentives and capacities of the market
actors.
The solution recognizes that business environment reform is integral to market development. The
program builds the capacity of the industry to address competitiveness issues. It brings together
stakeholders to craft and implement an industry action plan addressing constraints to quality
assurance and market promotion. The program builds linkages to ensure that policies enhance
competition and that the regulatory environment enforces quality measures. It strengthens the
capacity of support markets to address constraints at the enterprise level (especially with dairy
SBOs and processors). It promotes efforts that increase the production and sales of quality raw
milk, the number of bulking centers and revenues from the sale of milk, inputs and other services.
Such efforts include enhancing the services provided to dairy enterprises (such as inputs, training,
loans and technologies), stimulating the demand for services via service demonstrations and
promoting appropriate technologies.
the opportunity
Market approaches provide no direct assistance but utilize local resources to catalyze market
growth. It is about facilitating commercial linkages and assisting providers to innovate, develop and
commercialize relevant and affordable services and reducing the risk of innovation. It is about
promoting competition in the market by working with a range of stakeholders and allowing the
market to determine the best solutions and solution providers. This includes managing a
competitive sub awards system for local facilitators.
It is via strong local institutions and enterprises, supported by strategic public-private partnerships,
strong support markets and the mobilization of non-project resources, that lasting solutions to
competitiveness constraints can be found. Interventions are explicitly pursued with the objective of
sharpening incentives to innovate and developing business linkages and services focused on
business issues.
KDSCP focuses on addressing the constraints to market development for the whole dairy market. It
employs a macro view focusing on systemic market change via strengthening of the
competitiveness of the private sector and stimulating the market to replicate promising practices on
a sustainable basis. Systemic projects engage the private sector in devising and developing viable
businesses and market models that are likely to be copied and to take off in the wider market.
Projects based on this approach create value for all the market players, offer the potential to serve
larger number of small dairy enterprises, while demonstrating potential of market capacity to sustain
improvements over time without continued support. The challenge is to open the industry to be
competitive and dynamic whilst channeling benefits to the bottom of the pyramid.
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