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 Local advice was minimal, unavailable or out of date.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 45th Apimondia Congress 2017, the most significant event in beekeeping worldwide, will take place from 29th of September to 4th of October, in Istanbul, Turkey. For the first time in Apimondia’s hundred years of history, Georgia will be at this world forum, represented by the Ajarian Beekeeping Business Association (ABBA), exhibiting the different types of honey of its members and promoting Georgian honey and beekeeping.
It now has become a tradition of Batumi’s Summer to hold the sweetest festival of the year. The annual Honey Festival was held for the third time on August 12th on Batumi Boulevard. Up to 40 beekeepers from across Georgia who once again presented their honey and by products for the festival visitors. Honey themed entertainment activities for children, including face-painting, games; live music from folk ensembles and rock band were laid on, keeping the celebration spirit all day.
“I’m participating in the festival for the third time, as it helped me to get income and find new clients for honey. I think it is very important event in promotion of the beekeeping sector in Ajara, which is one of the leading honey producer regions” – Revaz Katamadze, the beekeeper from Kobuleti Municipality.
On 18th of July, six Women’s Rooms (WRs) of Ajara region have expanded their linkages by signing a Memorandum of Understanding (MOU) with the Ministry of Health and Social Affairs of Ajara Autonomous Republic. The Ministry will use the Women’s Rooms to reach the rural population though disseminating information and organizing meeting on the health-care programs implemented by the Ministry via WRs.
Shuakhevi municipality will have a Rehabilitation Center for the People with Disabilities soon to serve people with the special needs living in Shuakhevi, Khulo and Keda municipalities. The Government of Ajara Autonomous Republic has recently supported and financed the initiative with 196 000 Gel for its construction works.
4 months ago the municipality displayed the idea, which has been floating for years, on EEG Event for fundraising. The Deputy Gamgebeli of Shuakhevi municipality, Rusudan Shavadze, trained on the project writing, transferred the idea to the real project and the municipality was able to start attracting the funds for the implementation. After the EEG, the Association For Each Otherconducted the survey on the people with disabilities in the municipalities (Khulo, Shuakhevi, Keda) with the involvement of the local people; the Adjaristskali Georgia LLC expressed interest to make the contribution to the project; other organizations, like USAID and Embassy of France also are ready to contribute with providing training for inclusive education specialists, who will teach in the center. The contribution from each side is under discussion and will be known within month.
On 7th of July, a Memorandum of Understanding (MOU) was signed between the Women’s Rooms and the Gender Equality Council of Supreme Council of Ajara Autonomous Republic. According to the MOU, the Council will work with municipalities through the WRs to raise public awareness of gender and increase women’s participation in the decision-making processes. The Gamgebelis and other municipality representatives attended the ceremony and supported the idea.
“The Women’s Rooms have become one of the main powers in ensuring gender equality in the municipalities. The MOU aims to continue and strengthen our cooperation with the WRs and fulfill the mission of increasing women’s participation in the public sector”- Nino Chkhetia, the Chairwoman of the Gender Equality Council.
On 16th of June, the premiere of Jara was held in Batumi for the local governmental and non-governmental sector, funded and organized by the Ministry of Education, Culture and Sport of Ajara Autonomous Republic. The decision-makers of the region attended the screening: the Chairman of the Ajara Autonomous Republic, the local Ministers of Agriculture, Education and Health; the Mayor of Batumi, the representatives of Department of Tourism and Resorts of Ajara, municipalities and international organizations.
The film was received with great interest and applauses. Two main actors of the movie, who are also local residents and beekeepers themselves, were gifted with the modern honey extractor by the Minister of Agriculture.
