028-2013-12-CFF-NOA_dairy_partnership_final.docx

The linkage bridges the ethnic differences, promoting both economic wellbeing and mutual trust.

Kosovo Dairy Partnerships Bridges Differences While Building Prosperity

Dedaj with one of his 52 dairy cows. The SMS system has helped eliminate any disputes over milk quality. Now, Dedaj says, when he sits down with the dairy processor who purchases his raw milk, all they talk about is price.

Slobodan’s stable of cows in Lepina, municipality of Gračanica.

Kosovo Serb dairy farmers are increasing their incomes, commercial sustainability and local production of quality milk through a novel public-private partnership (PPP) supported by USAID. The Crimson Finance Fund (CFF), a lending institution supported by USAID, conceived of and structured the PPP between the Municipality of Gračanica, local dairy farmers in the municipality, the Kosovo Albanian dairy Bylmeti, which was eager to expand its supply network, and CFF.

The linkage bridges the ethic differences in this post-conflict nation, promoting both economic wellbeing and mutual trust. “Politics can sow divisions, while economics bring people together,” said former Gračanica Mayor Bojan Stojanović. The predominantly Kosovo Serb enclave is located just outside Kosovo’s capital, Pristina.

Under the PPP, each farmer received five pregnant, high-yielding heifers imported from Germany to increase their daily milk output. The Gračanica municipality recognized the leveraging opportunity and donated one of the cows and a lacto-freezer to each farmer. Loans extended by CFF to the dairy farmers financed the cost of the remaining heifers. CFF also helped the dairy farmers become officially registered businesses and improve their manure management for natural fertilization. Bylmeti, in turn, agreed to purchase the milk produced by the cows at an established, fair price, and collect the milk from each farmer every two days.

“I wanted to help create a model that shows how different ethnic groups can cooperate to the benefit of everyone,” said Ymer Berisha, Bylmeti’s director. For Bylmeti, the value lies in improving the herd size and herd quality of the farmers in its catchment area.

USAID provided further assistance by providing a milking machine to each farmer. The gesture demonstrated the utility of moving toward commercial production using improved milking technologies, and away from hand-milked, subsistence-type production. USAID also engaged a veterinarian to provide initial animal husbandry and extension services to the farmers. USAID further assisted Bylmeti in establishing its own private sector extension services. Bylmeti continues to provide those services on a sustained basis.

“The synergy of these combined contributions has generated results greater than any individual contribution and shows the way for effective agribusiness development through working together,” said Mark Wood, director of USAID’s New Opportunities for Agriculture (NOA) project.

The loan component of the arrangement provided a strong incentive for the participating dairy farmers to succeed, Stojanovic said. “If we had just given the farmers everything, the farmers would have sold their cows.”

Between January and August 2013, the program earned each of the eight farmers a monthly check averaging 485 Euros. The amount represents an average income in Kosovo.

“Thanks to this project, I’m able, from my land, to earn a living for my family,” said Slobodan Ničić, a dairy farmer in the village of Lepina, in Gračanica municipality.

Bylmeti uses the additional locally produced raw milk to produce the pasteurized fluid milk, yogurt and cheese it sells throughout Kosovo.

“Your project implemented in Gračanica is regarded as a valued partner by the Ministry. Its practical approach, tangible and concrete, is clearly seen at the individual farmers.” Minister of Agriculture, Forestry and Rural Development Blerand Stavileci.

“Thanks to this project, I’m able, from my land, to earn a living for my family.”

~Slobodan Ničić, dairy farmer from Gračanica image1.jpeg image2.jpeg image3.emf image4.png image5.png image6.jpeg