Rwanda

Group 3: Market Access

ADD:

• Formal Market Status:– <50% of Rw dairy farmers sell any milk (source: EADD

Baseline) – 4% milk flows via formal market (source: Value Chain Study)– Demand for packaged milk = +-6,000l/day (source: LoL)

• Take-out:1. In short term, FM is a limited mkt channel. Need for a

phased market development approach• Priority: Target the TM route to market to stay afloat• And: Stimulate consumer demand for packaged milk via processors

ADD:• Consumer Status:

– 40ml per capita/day– Milk price relatively high vs Ke & Ug– Majority of raw chilled milk consumed by single men in Kigali in cup-loads; women &

children scope to grow

• Take-out:– Barrier = Affordability:

1. Provide business case for alternate low-cost packaged products2. Provide business case for smaller pack sizes at processors3. Can we reduce raw milk price?

– Barrier = Habit of drinking milk1. Consumer milk promotion campaign via partnership with GoR, GAIN, LoL

– Identify the right partners leveraging Food Security momentum;– Identify functional & emotional attributes that will drive milk consumption.

2. School Feeding Scheme– Maintain relationship with Savannah to ensure EADD CPs sell to scheme

ADD:• Milk Distribution Status:

– Locality sales - out the door• Monthly milk contracts with individual consumers – reduced price; locked in volume

– Milk depots in Kigali• Address transport bottlenecks between CP & Milk Depots• Do we invest in an insulated truck instead of CPs?

– No cold chain for chilled milk• Formal products must either be UHT• Or processors to invest in cold chain

• Take-outs:1. Locality sales

• Build capacity to market out the door direct to consumers

2. Milk depots in Kigali• Identify transport bottlenecks between CP & Milk Depots• Do we invest in an insulated truck instead of CPs?

3. No cold chain for chilled milk• Formal products must either be UHT• Or processors to invest in cold chain – short term feasibility limited

Add:

• TM Options:– Build capacity of milk depots to market milk• Eg. Door-to-door sales via tuk-tuk/bicycle

– Co-owned milk depots in Kigali– Tusky’s retail milk dispensers– Cottage product value addition

Add:

• Review existing market research:1. Quantify what total demand for FM & TM milk is;2. Confirm where markets lie (Kigali & where else?);3. Identify where are the gaps in market knowledge

1. Commission study to address these gaps

• Potential outside Rwanda:1. Sell outside the country to Ugandan processors?

• No; appears cost prohibitive• Maybe to Burundi

Add:

• Micro-processing @ milk depots in Kigali• Barrier - Lactose intolerance?– Other products to drive in-take• Viable within time-frame?

Adjustment:

1. Remove budget allocated to the 3 additional CPs proposed for feasibility assessment in ‘11.

2. Add budget to pilot the ideas suggested above.