Posted by Helen Bradbury: Team Leader, Alliances Lesser Caucasus Programme
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 Local advice was minimal, unavailable or out of date.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.
Delivering drugs and services to rural farmers
Alliances’ vision was for farmers to have access to a broad range of quality medicines at a competitive price with advice to go with it. The means to achieve this was for drug manufacturers to invest in improved distribution systems to pharmacies in towns and villages. This included setting up new village-based pharmacies and providing additional training for pharmacists so they could deal with common livestock illnesses and diseases, local veterinarians and farmers to develop the market. This improvement in access and service quality would improve productivity for farmers, increase sales for drug companies, and enable them to self-finance further growth and expansion.
Intervention development and learning
Alliances decided to partner with Roki Ltd. because it was working with more pharmacies than other manufacturers, Roki was also investing in local production of generic medicines of its own, producing 40 per cent of their medicines within Georgia, and provided some limited trainings for vets, pharmacists and farmers. Roki’s vision was aligned with Alliances: it felt that its future development depended on improved management of its distribution systems, customer relations and pharmacist capacity.
Most importantly, however, they were the right people. The chemistry was right, ideas flowed, and they had a strong social ethos towards farmers which aligned with the programme.
Alliances were able to use its market research to demonstrate a large market for drugs amongst farmers in rural regions. The Alliances co-investment equipped the vet pharmacies whilst the company invested in drug distribution. Specifically Roki supported high potential pharmacies with wholesale rates for drugs, advertising for vet products an expanded set of trainings and a hotline service for vets and pharmacists.
Women’s economic empowerment was core to programme strategy, with gender disaggregated research data and training and advertising designed to reach women, however early results showed that the majority of the customers reached by these pharmacies were male. To respond, Alliances worked with Roki to create a new model of satellite veterinary pharmacies. These were closer to villages and accessible by women who rarely travel to town centres.
Drugs and services for 70,000 farmers
With support from Alliances, Roki has facilitated the opening of 44 new pharmacies, leading to increased access to veterinary drugs and services for over 70,000 farmers. Roki has expanded the model to include 284 further veterinary pharmacies in other parts of Georgia, and 11 other vet pharmacies have copied the model, resulting in over 250,000 Georgian farmers having access to veterinary services.
In Georgia, a key competitor in the supply of vet drugs is starting to replicate the business model, by importing identical medicines, creating an identical distribution chain and offering training to its pharmacies. In Azerbaijan Roki has partnered with Real Vet a company with outreach to 350 vet pharmacies. Drugs are being exported to Armenia and Turkmenistan. Roki now produces 70 per cent of its own medicines at its now HACCP and ISO compliant factory in Tbilisi and has become a founder member and advocate in industry related fora in an increasingly burgeoning sector.
The ALCP facilitated the Georgian Beekeepers Union (GBU) in development of the honey promotion video, depicting the story of Georgia as a land of the oldest honey discovered and unique biodiversity to support awareness raising and promote export potential of Georgian honey and Jara. The video was shared with different stakeholders and social networks.
The Ministry of Foreign Affairs shared it with their internal networks of embassies in Georgia and foreign countries and it was uploaded in a Georgian production section. The video is on Facebook of the Embassy of Switzerland in Georgia. The Georgian National Tourism Agency; The Department of Tourism and Resorts of Ajara; the Ministry of Environmental Protection and Agriculture; and The Agency of Protected Areas are sharing it with their network.
It has reached the highest views on the popular Facebook platforms Marketer.ge and Georgian Wine. To date the video has 185,000 views and 6,000 shares. The majority of the viewers are emphasizing on interesting story mentioned in the video they did not know before and are sharing it for further promotion.
The products with 'Georgian Milk Mark' are now available in the supermarkets of Georgia.
The 'Georgian Milk Mark' is officially registered and serves to distinguish dairy products made from natural milk.
The documentary Jara is now available for sale on amazon.
Jara is a fairy tale journey through one year in the mountains of Ajara. A story of the shifting boundary between human habitat and wild nature, portrays everyday lives in the changing seasons. The wooden jara in the forest and the bees living within it are the fixed point in the story.
The film was named as the best feature film at the Wolves Independent International Film Festival2018 in Lithuania, and won the Golden Green Award 2018 at the Deauville Green Awards International Film Festival in France for the best production in the category of Sustainable Agriculture; the cameramen of the movie received an award from International Festival of TV and Movie Cameramen the Golden Eye 2018 for Best TV Camera Work.
The main backer of Jara is the Swiss Agency for Development and Cooperation (SDC) through the Mercy Corps Georgia implemented Alliances Lesser Caucasus Programme.
Jara honey, collected from the local beekeepers in Ajara, has been officially branded and packaged for the first time. It is now ready to enter the international markets.
On 8th of November, 2018, the Government of Georgia adopted regulation #525, which forbids registration of the vet drugs containing prohibited antibiotics, like, chloramphenicol, metronidazole, dimetridazole, ronidazole, nitrofuran (including furazolidone) which are widely used in beekeeping. The regulation entered into force on 1st of January, 2019 and was nationally covered by the media outlets. The regulation was proposed by the Veterinary Department of the NFA, after this constraint was raised at the first Honey Sector Advisory Committee on 22nd of June, 2018, which brought together honey stakeholders to discuss tackling the high levels of antibiotic residues in honey which are limiting the development of the honey sector.
An article about Veterinary Surveillance Points (VSP) has been published in a quarterly bulletin of OIE – the World Organization for Animal Health. The article covers topics on the tradition of livestock seasonal movement in Georgia, the necessity of establishing VSPs and the importance of the points in animal health control throughout the country. The author of the publication is the Head of the Veterinary Department of the National Food Agency and the OIE Delegate of Georgia - Lasha Avaliani.
Please follow the link: Oiebulletin/veterinary-surveillance-points
