The document describes barriers facing milk producers and processors in existing marketing channels and the informal sector. It then outlines how SDVC has responded by promoting producer groups, establishing collection points, training collectors, facilitating connections between producers and processors, and introducing digital testing to improve transparency. The DFT model introduced by CARE overcomes issues by testing milk at the village level, aggregating and transporting it securely, and using digital testing at chilling plants. SDVC has also integrated women by developing community collection and supporting women as dairy collectors.

1. Output Market

2. Existing Milk Marketing Channel

3. 8 Barriers facing Producers
1. Low volumes not interesting to formal sector
2. Constant market price fluctuations
3. Delayed payments – one week or more
4. Lack of collection points in rural areas
5. Lack of market information
6. Unpredictable demand
7. Lack of trust and dissatisfaction in traditional
purchasing process
8. Lack of buyer loyalty to producers

4. 6 Barriers facing Processors
1. Poor quality and quantity of milk
2. Collectors are adulterating milk (adding
water)
3. Lack of trust in collectors and producers
4. Competing with informal market on price
5. Poor transport facilities in remote areas
6. Lack of producer loyalty leads to
underinvestment in production capacity

5. How has SDVC responded?
• Promoted producer groups and input
shops to improve productivity
• Established village-level collection points
• Trained milk collectors to reduce spoilage
and maintain fair business policies
• Facilitated matchmaking between
processors and producers
• Provided ongoing linkage support between
producers, collectors and processors to
build trust
• Introduced digital fat testing system to
improve transparency among stakeholders

6. Model Introduced by CARE to
overcome (DFT Model)
Village Level Fat Testing
Milk
Point: Digital fat testing
facilities, farmers based
on milk fat content,
receipt issued to farmers
with their individual milk
Payment fat reading, milk
aggregated in a locked
barrel
Milk Transporter: The
milk collector picks up the
locked barrel of
aggregated milk and
transports it to the chilling
plant. Milk transporter is
paid a wage by BRAC.
BRAC Milk Chilling Plant: Digital fat testing
facilities, increased supply of high quality milk
and improved MIS systems.

7. How has SDVC integrated
women into this vision and
model?
• Develop community-based collection
system so that women can sell milk
directly
• Develop women entrepreneur as dairy
collectors

8. THANK
S