active· Livelihoods

Increasing volume of processed products through improved marketing plans and skills

Annapurna Dairy Producer Cooperative Limited (ADPCL) and Agriterra started working together beginning of 2017 with the BHAG of: Improving profitability of the cooperative and the profitability of dairy farming for the members through increasing the volume of processed dairy products from 2000 liters today to 4000 liters in 2 years’ time. ADPCL is mainly specialized in the collection, chilling, processing and marketing of the milk produced by its 600 (484 at the start of 2017) farmer members. The cooperative furthermore has its own feed factory, model dairy farm, and provides credit and saving services to its members. ADPCL currently has difficulties in using the available processing capacity of its factory. Processing is required to add value to the milk of their members. In 2017, ADPCL in coordination with Agriterra focused on strengthening the marketing of the cooperative with activities such as research for product diversification and market segmentation, investment in more attracting branding of shop/sales point and products, exchange visit to other relatively successful dairy factory to gain idea on their marketing techniques and many more. In addition to these activities a study on production cost of farmers was also carried out to identify efficiency of the activities. As a result, the milk intake which was 4000 liters per day at the beginning of 2017 has now increased to 4800 liters, similarly processing has increased to 2700 liters from the previous 2000 liters. Still the results are not as expected. The biggest challenge of ADPCL in realizing this ambition remains in lack of marketing of processed products. Processing capacity is available in the current facility, but it is not used to its optimum because the cooperative cannot find sufficient market. In 2018 as well, ADPCL and Agriterra will mainly focus in this action plan on strengthening the marketing and organizational capacity of the organization while also paying attention to production at member level. Annapurna Dairy Producer Cooperative Limited (ADPCL) and Agriterra started working together beginning of 2017 with the BHAG of: Improving profitability of the cooperative and the profitability of dairy farming for the members through increasing the volume of processed dairy products from 2000 liters today to 4000 liters in 2 years’ time. ADPCL is mainly specialized in the collection, chilling, processing and marketing of the milk produced by its 600 (484 at the start of 2017) farmer members. The cooperative furthermore has its own feed factory, model dairy farm, and provides credit and saving services to its members. ADPCL currently has difficulties in using the available processing capacity of its factory. Processing is required to add value to the milk of their members. In 2017, ADPCL in coordination with Agriterra focused on strengthening the marketing of the cooperative with activities such as research for product diversification and market segmentation, investment in more attracting branding of shop/sales point and products, exchange visit to other relatively successful dairy factory to gain idea on their marketing techniques and many more. In addition to these activities a study on production cost of farmers was also carried out to identify efficiency of the activities. As a result, the milk intake which was 4000 liters per day at the beginning of 2017 has now increased to 4800 liters, similarly processing has increased to 2700 liters from the previous 2000 liters. Still the results are not as expected. The biggest challenge of ADPCL in realizing this ambition remains in lack of marketing of processed products. Processing capacity is available in the current facility, but it is not used to its optimum because the cooperative cannot find sufficient market. In 2018 as well, ADPCL and Agriterra will mainly focus in this action plan on strengthening the marketing and organizational capacity of the organization while also paying attention to production at member level. The BHAG developed with ADPCL is: Improving profitability of the cooperative and the profitability of dairy farming for the members through increasing the volume of processed dairy products from 2000 litres today to 4000 litres in 2 years time.