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 Local advice was minimal, unavailable or out of date.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.
On March 16th, 2018 the Alliances Caucasus Programme (www.alcp.ge) funded by the Swiss Agency for Development and Cooperation SDC and implemented by Mercy Corps in Georgia, hosted eighteen Swiss Ambassadors and Mission Directors of Development Cooperation of Switzerland from Azerbaijan, Moldova, Ukraine, Tajikistan, Kyrgyzstan, Kazakhstan as well as representatives of the Federal Department of Foreign Affairs’ headquarters in Bern. The visit was part of a regional seminar hosted by the Swiss Ambassador to Georgia and Head of Mission Olivier Burki, Regional Director of the Swiss Cooperation Office in Georgia.
'This forum is the first steps where women economic empowerment starts from. The Ajara Chamber of Commerce and Industry (ACCI) is ready to support women entrepreneurs and startups. Through the Women’s Room of ACCI we will help them in preparing Business Plans, liaising new business contacts and follow up their way of achieving success in businesses’ - Tamaz Shavadze, Chairman of ACCI.
The National Women Business Forum for 300 participants including 180 women entrepreneurs from all regions of Georgia as well as public, private and civil sector organizations concerned with women’s entrepreneurship was held in Batumi on International Women’s Day, March 8, 2018.
Management of Animal Movement Route (AMR) and Bio Security Points (BSPs) were the main topics discussed at the ALCP’s 9th Advisory Committee meeting on January 31st, 2018.
The Minister of Agriculture highlighted the importance of AMR and its Bio Security Points, their importance in underpinning animal healthcare and livestock export and the need for continued efforts to ensure progress in his opening speech.
‘Despite the positive dynamics there are still challenges and the governmental, non-governmental and private sectors should consolidate to overcome them’ - stated Mr. Davitashvili.
Existing gaps in management as well as the positive impact of BSPs were highlighted at the meeting. A short film: What shepherds think about the BSP’s available at ALCP/Videos allowed shepherds views to be presented in full.
All participants debated responsibility for managing the AMR and its infrastructure. Land overlaps, lack of resting areas, watering points at the Route, issues of concern for decades - were also discussed.
‘I think inclusion of self-governments in provision of BSPs’ operation is quite possible, local residents can be hired there and I’m ready to discuss this issue with the heads of local municipalities of Kvemo Kartli” - Grigol Nemsadze - The State Representative-Governor of KK Region.
As a result of this meeting the Regional Government of Kvemo Kartli and the Ministry of Economy have agreed to work together for final resolution of contested land on the route. Existing infrastructural gaps at BSP’s will be also solved in time for spring season, stated the Head of the NFA. With regards to BSP’s management and its future ownership the issue is clearly on the table for further facilitation and discussion with all interested parties to find the best solution and develop pertinent strategy going forward.
On December 5th the National Geographic Magazine Georgia presented its latest edition which features an article on Jara honey, at the National Museum of Georgia. About hundred guests tasted Jara honey and watched a special screening of the Jara movie, which had originally inspired the Georgian National Geographic to do the Georgian bee and honey story.
‘We were thinking about doing an article on Georgian Bees and honey, but we were not certain what direction to choose. One day, I got a call from Nika Tsiklauri, who invited me to the Jara premiere and while watching this truly fairytale, – I discovered the storyline we had been looking for’. – Natia Khuluzauri, Editor in Chief of the National Geographic Magazine Georgia.
The movie Director, Nika Tsiklauri, did a photo session of the Jara hives in Ajara. The magazine story writer, Irakli Pipia, enthusiastically worked on the topic and in addition came across documentation that showed that the Caucasian Gray Bees had been exported to the USA from Georgia atthe end of the 19th century.
‘This was a discovery none of us expected. Who knew that the Caucasian Bee had travelled so far? So, both authors, Nika and Irakli, did a great job and we have this beautiful elaborated story covering practically all aspects related to the Caucasian Gray Bee and honey they make’ – says Natia.
The event opened an exhibition of photos, Jara hives and beekeeping artifacts from Ajara. The Ajarian Beekeepers Business Association gave attendees a unique opportunity to taste recently harvested Jara wild honey from its members and personally explore traditional Jara hives and beekeeping handicrafts.
Photo Source: The National Geographic Georgia
A new Bio Security Point (BSP) has been opened by the Minister of Agriculture of Georgia on in Kakheti, Telavi municipality. It is the fifth point now open on the
Animal Movement Route along with the BSP’s in Marneuli, Rustavi, Dedoplistskaro and Signagi municipalities and the third point built by the government in addition to the two points built under the ALCP as part of the activities agreed between the government and the project.
‘We are conducting complex works for supporting sheep and cattle sector development and one of the most important components of this work are identification ®istration of official Animal Movement Route and a proper management of it. We now have five BSP and this helps us to manage the movement of the livestock and their health control’ Mr. Davitashvili stated.
Georgia and the Georgian honey were successfully and widely promoted at the 45th Apimondia Congress in Istanbul, Turkey, by the Ajarian Beekeeping Business Association (ABBA). The Jara honey along with Chestnut and Acacia honey were the most popular among the honey importers from all over the world. Markets for Georgian honey seems diverse based on the high interest from countries such as France, Germany, Kuwait, Iran, Turkey and India among others. More to be found in the TV slot prepared by Ajara TV
