Annual Review & Planning Meeting Kampala, 01-03 December 2010

1. Annual Review & Planning Meeting Kampala, 01-03 December 2010 • ARPM 2010 Updates, process & expectations • Moses Nyabila & Team

2. Contents • Scene setting • EADD vision & objectives • Understanding our OPB process • 2010 Results & updates • Key learnings, challenges & mid-course corrections (MTE) moving forward to 2011-12 • EADD building blocks • EADD stumbling blocks • Way forward in 2011 • ARPM expectations • Country & regional teams? • Partners? • Foundation?

3. Scene setting

4. EADD vision & design • EADD-1 (pilot : 4.5 yrs : 2008-2012) • `The vision of success for the East Africa Dairy Development project is that the lives of 179,000 families—or approximately one million people—aretransformed by doubling household dairy income by year 10 through integrated interventions in dairy production, market-access and knowledge application • EADD1 designed: • to test different implementation methodologies • to capture lessons learned • to build implementation capacity

5. Objective 1: knowledge-based learning Objective 1: To generate information for informed decision-making on the dairy value chain and to develop innovative solutions for use of resources that increase income (29 milestones) Activity 1: Establish and maintain a knowledge-based project Activity 2: Generate necessary research to inform project analysis and decision-making

6. Objective 2: market access Objective 2: To expand dairy markets and increase market access for smallholder farmers (45 milestones) Activity 3: Organize smallholder dairy farmers to effectively bulk and market dairy products Activity 4: Ensure steady, cost-effective supply of goods and services to farmers and farmer groups Activity 5: Expand dairy markets

7. Objective 3: dairy productivity Objective 3:To sustainably increase dairy productivity and efficiency (29 milestones) Activity 6: Organize and strengthen dairy farmers to effectively manage dairy businesses Activity 7: Increase on-farm milk production through the adoption of productivity enhancement technologies Activity 8: Sustain production and quality of milk through improved animal healthcare and nutrition

8. Key Milestone Progress through Q4, 2010

9. Site progress along stage-gating

10. Trend averages of all active sites performance since Project inception

11. EADD planning & budgeting so far • 2008? • Country plans? Partner plans? • All-EADD plan? • First ARP meeting? • 2009? • Apr-May: in-depth planning review strategic project realignment • Jun-Jul: first OPB (2009) drafted, without partner OPBs • Jul: submitted to Foundation • Aug: Foundation released funds to HI • Nov: planning started for 2010 • 2010? • Jan-Mar: OPB-2010 drafted • Apr: holistic OPB drafted • May: submitted to Foundation • Jun: Foundation released funds to HI • Sep: planning started for 2011

12. EADD OPB site (activity) based planning & budgeting

13. OPB-2011 10-step process Reviewing project progress to date and factoring in experience and knowledge-based learning. Reviewing and updating existing site engagement plans so as to: (i) prepare holistic annual operating plans (AOPs), or action plans (APs) for those sites without business plans, for the coming year and (ii) allocating planned activities/expenditure to either the DFBA or EADD Consolidating the holistic site AOPs/APs and budgets at cluster level, then country level and finally all-EADD level. Submitting the first draft of the coming year OPB to the Annual Review and Planning meeting for review, input and refining (Nov). Drafting & agreeing partner OPBs based on country OPBs & prior year expenditure estimates (Dec)

14. OPB-2011 10-step process (cont.) Submitting the consolidated all-EADD draft OPB to the Regional Advisory Committee for review and endorsement (Jan). Incorporating actual prior year expenditures (Feb) Submitting the OPB through the Heifer partner to the SC for review and approval, prior to transmission to the Foundation (Feb). A management letter from the Foundation to the Regional Director setting out: (i) feedback for the immediate past year; (ii) expectations for the coming year; and (iii) funds disbursement. A management letter from the Regional Director to each partner reviewing prior year progress and setting out current year expectations in accordance with the OPB.

15. Learnings, challenges & mid-course corrections

16. Constraints and challenges • Project is generally on track in the following: • Increasing of income of targeted beneficiaries • Increasing output/per farmer/cow • Driving adoption of productivity enhancing technologies e.g. AI, fodder conservation, use of quality feeds • Our milk quality interventions are working. • Raised concerns on the following: • Need for concerted action to: (i) bring in poorer farmers within catchments of DFBAs; (ii) get more ‘mobilised’ farmers to deliver milk • Need to synchronize DFBA business plans with EADD action plans • Further simplify business plans to make them easier to use by DFBAs • Further streamlining of reporting & M&E processes to fully empower line managers & staff – our CPMs, our team leaders, our front-line field staff • MTE partner review meeting (Nairobi 03-05 Nov. 2010) • Action plan to internalise (Part 1 meeting summary report received 24 November): • any necessary mid-course corrections into EADD1 • carry forward other to proposed EADD2

17. EADD building blocks • Unique market-oriented, farming family-oriented framework for enhanced rural livelihood improvement • business • social (jobs, assets...........) • environment • EADD dairy business hub platform • holistic – all inputs & services, including finance & credit • stepped strategy for putting in-place & exiting profitable farmer-owned businesses • flexible platform for adding related businesses, e.g. feed, maize trading etc • EADD project implementation system (PIS) • holistic bottom-up activity-based planning & budgeting – the OPB • credible M&E, FIS, MIS • Integrating the platform with PIS • enables very large numbers of people to benefit • embeds needed quality services & professional support (management &, technical) • keeps costs down

18. EADD stumbling blocks • Milestones & targets • quality v. Quantity? • reaching the poor • Site planning still a work in progress • business plans • annual operating plans or action plans • Hub financing & management • Dairy markets • Integrating production interventions

19. Can we do better for 2011? We want to complete the DFBA site-based planning process by Dec 2010 and submit to the Foundation with the AR-2010 in Feb 2011

20. Updated OPB 2011 • Updated OPB guidelines • Operations plan – narrative with supporting tables & budget summary • Appendices: including budget per DFBA site & cluster supported by DFBA annual operating plans (AOPs) or action plans (APs) • Additional information & plans on • CP financing & loan repayment • site stage-gating • targets for milk volumes, farmer mobilisation & equity build-up • Enhancing budgetary accountability • Grant approach for all or part of DFBA direct expenditure allocations in 2011 • DFBA AOPs / APs to be basis for allocating & disbursing budgets in 2011 • Recently recruited compliance Manager will support (Josephat Njeru) • CPM to bring DFBA AOPs / APs to ARP meeting • Kampala: 29/11 to 04/12/2010

21. OPB-2011 Theme • Applying our dairy hub learnings to realising the EADD visionof doubling the dairy income of 179,000 farming families by 2017 • Kenya 110,000 • Rwanda 24,000 • Uganda 45,000 • `

22. Special focus for OPB-2011 • Incorporating agreed mid-course corrections arising from MTE findings & recommendations • Fully introducing holistic DFBA annual operating plans • Operationalising the EADD gender & youth strategy • Documenting the EADD Dairy Hub Business Platform (the SOPs in the Resource Book) • Participatory preparation of the EADD2 proposal

23. Expectations • Rigorous sincere discussions around issues and formulate solutions

24. Things to remember Logic will get you from A to B. Imagination will take you everywhere. Albert Einstein The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it. Albert Einstein

25. www.eadairy.org Thank you! www.gatesfoundation.org Amaata ku l’wobulamu n’obugagga!