Name: Natural Produktsia Ltd
Place: Dioknisi Village, Khulo Municipality
Type of business: Cheese Factory
Product: Imeruli Cheese
Suppliers: about 450 women from 13 villages of Khulo
Current production per day: 5 tons of milk (700 kg of cheese)
The Problem
The 450 women now selling milk directly to the milk collectors of the Natural Produktsia Ltd Factory in Dioknisi, Khulo used to make cheese from their milk. Women are responsible for milking the household cattle and making the cheese, butter, sour cream and cottage cheese which is then sold as an important part of the family’s livelihood.
Selling these products however is hard and uncertain. The journey by marshutka to Batumi Agrarian Market can take up to 4 hours on bad roads. It is taken to the market by husbands or other male family members or sent with the driver and met by a relative who then tries to sell it. There is no guarantee of a sale and often the family is forced to accept a low price from the market vendors rather than take it home again.
The Idea
The idea for the factory came from a member of an old Khulo farming family, Arcadi. His brother, Tsezari was already in the dairy business in Tsalka with his mother, where, hoping to escape the lack of opportunity in Khulo they moved to Kvemo Kartli and started a small cheese factory in a cowshed. This cowshed is now a purpose built factory with its Sulguni cheese supplying Carrefour and the 5 star hotels of Batumi. Alliances KK had helped them do it. Arcadi was already selling his brother’s Sulguni cheese from the familiy’s distribution outlet in Batumi Market, but Sulguni only makes up 20% of the market the other 80% is for Imeruli. When Alliances opened in Ajara in 2014, Arcadi saw his chance. He proposed a small factory collecting milk from the upper mountain villages making Imeruli cheese. The gamble was that Imeruli sells for 2 lari less per kilo than Sulguni and you have to make and sell a lot more of it to make a profit.
The Solution
450 women are now selling milk directly to the milk collectors of the Natural Produktsia Ltd Factory in Dioknisi, Khulo. The building which opened in September 2015 is compliant with the new food safety and hygiene requirements and equipped with, with new modern dairy equipment.
Milk collectors from the factory collect the milk daily from the women in their houses. The women were specially trained by a food safety consultant in producing clean milk. The women save two hours a day from not having to make cheese, they save the costs of wood or gas for heating the milk to make it and other materials such as pepsin. The family is saved the costs and time and worry of having to get to Batumi and sell the cheese.
The End and the Beginning
The programme and Arcadi were unsure of how much milk there would be. People had said how poor the little red Ajaran cow was, how despairing the rural population. Ajara however has a magic, special even to Georgia, when the news went out that the factory was open the villagers decided en masse to sell. Overnight more milk than anyone imagined was available. The factory is processing 5 tonnes of milk about 700kg of cheese a day at a time of year when many dairy factories are thinking of shutting down for the winter as milk supply dwindles until the following spring. They have turned milk away as they have yet the capacity to process more. Expansion is already on the cards. Of the cheese itself the fat content is high and the milk itself from the high mountain pastures of pristine Ajara. The cheese moreover is delicious. The queues out the door of Aracadi’s distribution outlet in Batumi Market and the fact it’s sold out by midday testify to that.
The participation of Alliances Lesser Caucasus Programme at DCED Global Seminar was highly appreciated and named within the top 3 seasons of the event by the attended audience. The seminar on the Standards for Results Measurement was hosted by DCED in Bangkok from 14 to 16 March 2016.
Women's economic empowerment, assessing attribution, measuring job creation, and using results information to manage programmes – were the main topics of presentations and discussions featured on the seminar. 130 participants from 38 countries, representing 52 organizations, field programmes and donor agencies gathered for the information exchange, for deepening understanding of DCED standards and for participating in plenary discussions on cutting edge themes.
The full agenda, presentations with relevant links and final summary report are available on the following link: DCED Seminar2016
ALCP photo won in the photo competition on Private Sector Development announced by DCED. Photo is taken in programme financed Wool Collecting Center and it was listed among 5 winners in condition of high competition. Winning photo will be displayed on new DCED website, visited by more than 60,000 unique users per year, and materials printed for high-profile events and publications. It will also be shown at the DCED Global Seminal in Bangkok.
After months of intensive construction work and four and a half years of multi-stakeholder advocacy the first Bio Security Point on the AMR has been opened. By the next transhumance season spring 2016, the country will have proper infrastructure for ensuring systematic health control of the livestock in place.
The event was attended by the Regional Director for Swiss Cooperation Office for the South Caucasus, by the Deputy Minister of Agriculture, the Head of the National Food Agency, the Governor and Gamgebelies of Kvemo Kartli region and the representatives of private and non-governmental sector. The event was widely covered by the national media.
Posted by Helen Bradbury: Team Leader, Alliances Lesser Caucasus Programme
ALCP has been featured on BEAM Exchange. See the story below.
Rural farmers can only grow their income when they have access to the drugs and veterinary services to keep their animals healthy and growing too. Alliances has partnered with a national veterinary inputs supply company to improve access to drugs, information and vet services for poor farmers in rural Georgia. There are strong signs competitors are seeking to replicate the model, which is also scaling up nationally and in neighbouring countries.
The challenge
Over 2 million people in rural Georgia rely on subsistence farming, typically owning less than one hectare of land. SDC has been funding a series of programmes in Southern Georgia since 2008 to improve the livelihoods of livestock farmers.
During initial surveys, Alliances learned that less than 10 per cent of farmers were accessing veterinary drugs or services in their community, in rural vet pharmacies mainly self-stocked from trips to Tbilisi. Others bought drugs when travelling to the capital. In the rural vet pharmacies a limited range of often improperly stored drugs were sold at high prices due to the resultant transaction costs. Local advice was minimal, unavailable or out of date. This had led to a lack of farmer trust in local veterinary products and services and unwillingness to invest.
Suppliers had failed to grasp the market potential of developing rural distribution, lacking both the information and capital to do so. The uncertainty about whether farmers would buy their products meant the perceived risk held suppliers back from making the first move.
Last week, NFA officials met with 19 private sector representatives from dairy and meat sectors in Akhaltsikhe, continuing a series of the meetings held in KK and AJ on new FS&H regulations. Key issues, which could restrict market access, such as form #2 requirements in meat sector and HACCP for dairy sector, were discussed.
The heavy rain and strong wind in Ajara last week saw the DRRWG hotlines have been flooded with calls in Kobuleti, Khelvachauri, Keda, Shuakhevi and Khulo municipalities. From Wednesday morning till Saturday night (November 11th-14th), the Government of Ajara and all five municipalities declared a state of emergency and announced the DRR WG hotline number on Ajara TV and online for the farmers seeking help. Municipal DRR WG members, along with a geologist and a representative from the Road Department, formed emergency response groups in each municipality to immediately respond to calls.
