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 Local advice was minimal, unavailable or out of date.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.
A German beekeeping magazine Deutsches Bienen-Journal with circulation of 52,000 copies a month published a comprehensive article on beekeeping in Georgia and its history, local bee breed Mountain Grey Caucasian Honey Bee (Apis mellifera caucasica) and Jara honey a special mention of the project’s work.
The International Labor Organization’s (ILO) Better Cheese, better work: The Alliances Caucasus Programme’s Impact on Informality and Working Conditions in Georgia’s Dairy Sector which explores formalization within the dairy value chain in Georgia stemming from ALCP market systems interventions, is now available on the ALCP website.
The ILO and ALCP worked together from summer 2019 to bring this research to completion. There are several reasons for the timeliness and importance of this report; chief amongst them is the ever present need for lessons learnt from MSD programmes, which can be applied in others, secondly the need to demonstrate the efficacy of the approach with a detailed account of systemic change and thirdly the growing importance in development programming of evaluating the efficacy of the MSD approach to develop quality employment at scale.
From the beginning of June, the two most popular national TV stations Imedi TV and TV Pirveli have been broadcasting the Georgian Milk Mark (GMM) animation video five times a day during prime time for free as a part of social advertising. Those televisions have national coverage reaching a high number of consumers.
There are now ten GMM dairy enterprises’ products available in fifteen supermarket chains across Georgia. Detailed information to be found on www.georgianmilk.ge.
On the May 20th, 4,400 beekeepers registered in the new GBU database received an SMS notification from the Georgian Beekeepers Union (GBU) on how to treat Varroa, the most common bee disease in Georgia.
The GBU will continue informing its members through phone Facebook. And their new official webpage is now online: www.geobeekeepers.ge.
Created in 2018, the GBU is an umbrella association uniting ten beekeeping associations and three commercial beekeeping companies.
The Georgian Beekeepers Union (GBU) successfully advocated for permits to be issued for beekeepers allowing them to continue work during the curfew.
The Government of Georgia declared the nationwide curfew on March 30th, 2020 to restrict the spread of the COVID-19 virus, prohibiting any movement from 9:00 PM to 06:00 AM. This posed a serious problem for beekeepers who rely on transhumance predominantly at night.
In Georgia, bee transhumance allows for beekeepers to place hives at different altitudes to capture the flowering of different plants. Starting from late Spring, Georgian beekeepers start to move apiaries to get different types of honey including Acacia,Chestnut, Alpine, Linden. The transhumance of bees significantly increases their honey productivity.
On April 4th, the GBU sent an official letter to the Ministry of Environmental Protection and Agriculture of Georgia (MEPA) asking for the issuing of permission/passes for beekeepers including the guidance it developed for beekeepers during the Covid-19 outbreak.
‘We asked the Minister to mediate with the appropriate agencies to issue special permits, so that beekeepers may access their apiaries and work there, transport beekeeping apiaries for transhumance on pre-determined routes within the curfew conditions.’ – Avksenti Papava, the Director of the GBU.
Up to eight hundred beekeepers have already used permits, who are now able to visit apiaries and carry out vital seasonal treatment and maintenance. Bees are transported at night where possible, because they do not leave a hive during night, which the permit makes possible.
‘I have my apiaries located in the different regions for getting various types of honey. I was very happy to hear about special permit for beekeepers, as it is very active season in beekeeping. I am able to freely move to the locations and do not worry about time limitations’ – Kakhaber Zirakasvili, a beekeeper.
Guidance and contact information on getting permits and the Covid-19 recommendations have been shared by the GBU on its facebook page.
The Georgian Beekeepers Union (www.geobeekeepers.ge) is an umbrella association uniting ten beekeeping associations and three commercial beekeeping companies with more than four thousand Georgian beekeepers. It was established to represent their interests and to promote the health and development of the honey sector in Georgia with the facilitation of the Swiss Agency for Development and Cooperation (SDC) project the Mercy Corps Georgia implemented Alliances Caucasus Programme (ALCP).
In the midst of anxiety under the COVID-19, some people rise to the occasion when faced with adversity and it is uplifting to hear stories about them. As for many others it has been difficult times for the client businesses of the programme, but they have continued to help people most affected by the current crisis over the past two weeks.
Ten dairy enterprises with the Georgian Milk Mark www.georgianmilk.ge provided cheese for the medical staff of hospitals in the frontline of battling the virus as well as people under quarantine and locals in the lockdown areas in the different regions of Georgia, who have limited access to the markets.
‘It is now important to show support to each other. I was very happy to see reactions from people, who were very surprised and thankful. I think those GMM enterprises set very good example for others.’ – A GMM cheese distributor.
The Georgian Beekeepers Union (www.geobeekeepers.ge), uniting ten beekeeping associations and three commercial beekeeping companies supplied 1.2 tonnes of honey for further distribution among medical staff and vulnerable groups.
The Kakhetian Traditional Winemaking group’s (programme facilitated honey aggregator and exporter company) forty-one rooms hotel-complex is being used as a quarantine zone, the company also supplied food to locals over seventy in two regions of Georgia within a social project ‘Care for Each Other’ initiated after the virus outbreak and is now offering online sales and a free home delivery of its products (wine, compotes, jams, including, honey); the company’s webpage Old Kakheti went online to improve online sales.
These are a few examples and continuation of the kindness acts that started a month ago.
