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 Local advice was minimal, unavailable or out of date.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 ‘Georgian Milk’ mark has been registered in the National Intellectual Property Centre of Georgia - Saqpatenti. The mark is now protected to avoid falsification and strengthen the ownership of Business Institute of Georgia, an independent body which will regularly audit dairies granted license to use the mark.
Eighteen dairy enterprises have already applied to use the mark.
The new ‘Georgian Milk’ mark will distinguish dairy products made from natural raw milk.
Information per enterprise will be published online on a www.georgianmilk.ge website which will come online at beginning of March. This will allow consumers to look up the products they are buying using a unique register number printed on the label.
A national promotion campaign conducted by GMA international marketing company to introduce the mark to the public and retailers will be rolled out from the end of next month.
A presentation of a new ‘Georgian Milk’ mark was held on the 22nd of January at Hotels & Preference Hualing Tbilisi.
Up to 150 dairy enterprises and representatives of supermarkets, agri markets, sectoral associations and Government Agencies participated in the meeting.
The new ‘Georgian Milk’mark will distinguish dairy products made from natural raw milk. The ‘Georgian Milk’ mark will be found only on dairy products produced from Georgian natural raw milk and which do not contain milk powder and/or any vegetable oils. The purpose of the mark is to promote products made from Georgian natural raw milk, which will help consumers make informed decisions while buying milk and other dairy products. A recent large national consumer survey by the Caucasus Research Resource Centre of urban consumers across Georgia showed that consumers want to be able to buy ‘ecologically clean’ dairy products, meaning clean milk that comes from healthy grass fed cattle and dairy products produced in clean regulated enterprises. The research found that the majority of consumers had difficulty in identifying or being able to buy such products as these products are currently undifferentiated in shops. The ‘Georgian Milk’ mark will therefore solve this problem.
The ALCP facilitated the Georgian Beekeepers Union to develop infographic regards Do’s and Don’ts of Antibiotic Use, providing guidelines for the beekeepers on proper usage of antibiotics and preventing honey and beeswax from contamination with the antibiotics. The full version of the infographic is available here.
On December 26th, the Journalism Resource Centre presented its second edition of the agri journalism module. About hundred guests from the government, business and academic sphere attended the event.
The Minister of Environmental Protection and Agriculture of Georgia, Levan Davitashvili stated: ‘I am very glad to hear about all the initiatives related to agri journalism. Education is very important in agriculture for ensuring information dissemination for farmers. The door of the Minister of Agriculture is open for you at any time and our partnership with regional media is very important.’
The agri module was created for inclusion in BA in journalism degrees. Now, ten universities across Georgia have the agri journalism module established in their curriculum, lasting one semester with a total of 15 credit hours. Four more universities are about to do the same this year. 369 students have undergone the course in Georgia to date. Now those initiatives are ready for transfer to Armenia and Azerbaijan.
During the event, the Journalism Resource Centre awarded farmers and specialists within the agricultural sector. The Best Female Farmer of the Year award was given to beekeeper Mariam Kiladze; the Best Vet of the Year was Giorgi Tcikhelashvili from Dmanisi, he is 25 years-old who graduated from the Vet Department at Agrarian University and went back to Dmanisi and is working as a vet. The Best Male Farmer award was given to shepherd Giorgi Imerlishvili. Credo and the EBRD were recognized as financial institutions that supports agriculture, and SDC Project Mercy Corps Alliances Caucasus Programme for supporting agri media journalism.
At the end of the event, the Journalism Resource Centre announced the establishment of the Agro Guild, which unites journalists and media organizations, businesses, farmers, public officials, and universities and sets up annual or bi-annual advisory committees. The members of media associations and the JRC also announced that they are planning to establish an Agri TV program, the pilot of which will start in three months.
Follow this link for additional news regarding the event.
For the first time ever, twenty Jara producers have sold their entire crop of Jara to a commercial enterprise. Jara honey will soon be available in shops in Georgia.
See photos below.
The construction of a new Veterinary Surveillance Point has recently started in Bolnisi municipality. The works will be finished in December 2018. The point will be the six and final point in the Veterinary Surveillance network throughout the Animal Movement Route.
During five transhumance seasons in 2016-2018 total 1.4 million heads of sheep and cattle were treated against ecto-parasites free of charge at all operational Veterinary Surveillance Points in Rustavi, Marneuli, Signagi, Dedoplistskaro and Kvareli municipalities.
