1.2 Contact details of resource persons and institutions involved in the assessment and documentation of the Approach

Name of project which facilitated the documentation/ evaluation of the Approach (if relevant)

Strengthening national-level institutional and professional capacities of country Parties towards enhanced UNCCD monitoring and reporting – GEF 7 EA Umbrella II (GEF 7 UNCCD Enabling Activities_Umbrella II)

Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)

National Soil Services Centre, Department of Agriculture, Ministry of Agriculture & Livestock (NSSC) - Bhutan

1.3 Conditions regarding the use of data documented through WOCAT

When were the data compiled (in the field)?

17/07/2023

The compiler and key resource person(s) accept the conditions regarding the use of data documented through WOCAT:

Yes

2.1 Short description of the Approach

The Darla dairy cooperative is an example of where farmers come together to form collective organizations for production, collection, transportation, processing, and marketing of milk and dairy products. These are business models operated as member-owned and member-controlled organizations.

2.2 Detailed description of the Approach

Detailed description of the Approach:

Livestock in Bhutan are reared for a multitude of purposes, encompassing the production of milk, food, and dung, as well as serving as a means of generating draught power, generating revenue, and accumulating assets. Dairy products, particularly butter and cheese, occupy significant significance within the Bhutanese nutritional framework and have emerged as a noteworthy economic resource for certain households in recent times. Knowing its importance many Bhutanese farmers are forming the cooperative groups. One thing that has been constantly growing over the years in Darla Gewog under Chhukha Dzongkhag is a Farmer’s Cooperative.
Darla dairy cooperatives are business owned and operated by dairy farmers, designed to collectively manage market milk and dairy products (Singh & Gupta, 2015). One of their main features is the collective ownership structure, where farmers become members and actively participate in decision-making processes. By pooling resources, dairy cooperatives enable farmers to access shared facilities, such as milk processing plants and storage, reducing individual cost and enhancing efficiency. Additionally, they offer fair and transparent pricing mechanisms, ensuring farmers receive a competitive price for their milk. Dairy cooperatives also provide valuable technical assistant, training, and access to markets, supporting farmer's growth and sustainability in the dairy industry (USDA, 2015).
The aims and objectives of dairy cooperatives revolve around empowering dairy farmers and promoting their collective welfare. One of the primary objectives is to facilitate shared ownership and democratic decision-making, allowing farmers to collectively manage their dairy operation. Another key aim is to ensure fair and equitable distribution of profits among members, promoting economic sustainability and social development within the dairy community. Dairy cooperatives also strive to provide access to modern technologies empowering farmers with the knowledge and skill needed for sustainable dairy farming practices (FAO, 2019).
The formation of a dairy cooperative typically involves several methods and steps to ensure successful establishment. Firstly, a core group of dairy farmers with common goals come together to initiate the cooperative. They conduct meetings, gauge interest, and identify potential members. Once the core group is established, they create formal bylaws that outline the cooperative's objectives, membership criteria, decision-making processes and profit-sharing mechanisms. To attract more members, awareness campaigns and informational sessions organized by gewog livestock extension agents showcase the benefits of joining the cooperatives. Financial planning and livestock management efforts are also undertaken to raise the necessary capital for initial investments, such as setting up milk processing facilities and infrastructures. There are 101 registered dairy farmers who contribute milk through the cooperative. The dairy cooperative is operated by 6 core members who manage the daily activities.

Dairy cooperatives play a crucial role in the dairy industry by bringing together various stakeholders and facilitating their collaboration. The primary stakeholders involved in dairy cooperative includes dairy farmers who are the core members and owner of the cooperative. They actively participate in decision-making and contribute their milk to the cooperative for processing and marketing. Additionally, consumers are significant stakeholders as they rely on dairy cooperatives to provide them with high quality milk and dairy product. Other stakeholders like the gewog livestock extension agent, the District livestock officer and other officials are involved in a meeting which is conducted twice a year. Marketing opportunities are the main driving forces for producers to produce more of any type of product. Identification of market opportunities and the development of proper marketing strategies for milk and milk products for selected groups of villages would be a useful approach to support dairy cooperatives.

2.3 Photos of the Approach

2.5 Country/ region/ locations where the Approach has been applied

2.6 Dates of initiation and termination of the Approach

2.7 Type of Approach

• recent local initiative/ innovative

2.8 Main aims/ objectives of the Approach

The dairy cooperative aims to increase income through marketing of surplus milk, by engaging unemployed youths. Such intervention is expected to address problem srelated to rural urban migration.

2.9 Conditions enabling or hindering implementation of the Technology/ Technologies applied under the Approach

3.1 Stakeholders involved in the Approach and their roles

3.2 Involvement of local land users/ local communities in the different phases of the Approach

	Involvement of local land users/ local communities	Specify who was involved and describe activities
initiation/ motivation	interactive	The core dairy farmers with guidance from the Gewog Livestock Extension Agent came up with ideas to establish a dairy cooperative/group.
planning	interactive	Core members along with intellectual people from the village assisted by gewog livestock extension agent planned and proposed.
implementation	interactive	Interested dairy farmers supported by the gewog livestock agent and dzongkhag implemented the activity following the workplan and bylaws agreed upon.
monitoring/ evaluation	external support	The activities of the dairy cooperatives are monitored periodically through field visit, monthly report, Bi-annual general assembly meeting and annual audit.

3.3 Flow chart (if available)

3.4 Decision-making on the selection of SLM Technology/ Technologies

Specify who decided on the selection of the Technology/ Technologies to be implemented:

• land users alone (self-initiative)

Explain:

The idea was conceptualized by the core group members, and accordingly planned and dairy cooperative was established initially. The engagement of other stakeholders came after the establishment.

Specify on what basis decisions were made:

• personal experience and opinions (undocumented)

4.1 Capacity building/ training

Was training provided to land users/ other stakeholders?

Yes

Specify who was trained:

• land users

Form of training:

• on-the-job

Subjects covered:

Group mobilization, bookkeeping , planning
Hygienic and clean milk production, collection, transportation, and processing.
Breeding and management (AI, Housing, feeding system)

Comments:

The specialized training was provided by subject matter specialist, and on basic topic by the respective Extension Agent

4.2 Advisory service

Do land users have access to an advisory service?

Yes

Specify whether advisory service is provided:

• on land users' fields

Describe/ comments:

Officials from NCOA Yusipang monitored their work, and livestock officials organized awareness program on the management, care, prevention and control of common cattle diseases

4.3 Institution strengthening (organizational development)

Have institutions been established or strengthened through the Approach?

• yes, moderately

Specify the level(s) at which institutions have been strengthened or established:

• local

Describe institution, roles and responsibilities, members, etc.

The number of dairy cooperative members have increased by 15 households.

Specify type of support:

• equipment

Give further details:

All members of the cooperative were supplied with milk cans to collect, store and transport milk

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

Yes

Comments:

Physical on site monitoring and evaluating the quality, standard, cleanliness of the work and products

If yes, is this documentation intended to be used for monitoring and evaluation?

No

4.5 Research

Was research part of the Approach?

No

5.1 Annual budget for the SLM component of the Approach

If precise annual budget is not known, indicate range:

• 10,000-100,000

Comments (e.g. main sources of funding/ major donors):

The approach was implemented with the seed money collected from the members.

5.2 Financial/ material support provided to land users

Did land users receive financial/ material support for implementing the Technology/ Technologies?

Yes

If yes, specify type(s) of support, conditions, and provider(s):

They were provided with the milk processing equipment

5.3 Subsidies for specific inputs (including labour)

• agricultural

Comments:

The government fully funded construction of milk processing, and is being operated by the cooperative free of cost.

5.4 Credit

Was credit provided under the Approach for SLM activities?

No

5.5 Other incentives or instruments

Were other incentives or instruments used to promote implementation of SLM Technologies?

No

6.1 Impacts of the Approach

6.2 Main motivation of land users to implement SLM

6.3 Sustainability of Approach activities

Can the land users sustain what has been implemented through the Approach (without external support)?

• yes

If yes, describe how:

The initial investment has been recovered, and current income meets the operation cost.

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the land user’s view
Source of cash income
Increased cooperation and network
improve household livelihood

Strengths/ advantages/ opportunities in the compiler’s or other key resource person’s view
Creates employment opportunities to the school drop-outs and rural youths
Contributes to food security and better nutrition

6.5 Weaknesses/ disadvantages of the Approach and ways of overcoming them

Weaknesses/ disadvantages/ risks in the land user’s view	How can they be overcome?
Scattered settlement and production	Increase the number of transportation vehicles, improve road connectivity
Short shelf life of milk	Try marketing in nearby places if possible, install cold chain facilities
Delay in payment	Create a terms of agreement with the retailers to ensure payment on time

Weaknesses/ disadvantages/ risks in the compiler’s or other key resource person’s view	How can they be overcome?
No proper market outlet for wholesale marketing	explore market outside gewog

7.1 Methods/ sources of information

7.3 Links to relevant information which is available online

Title/ description:

Cooperatives in the Dairy Industry

URL:

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.rd.usda.gov/files/cir1-16.pdf&ved=2ahUKEwi9z4b8-Z6AAxV7umMGHQsgBZUQFnoECBMQAQ&usg=AOvVaw0jmrAUETNEh8crEba04qjj

Title/ description:

Dairy development through cooperative structure

URL:

https://www.fao.org/3/T3080T/t3080T0a.htm

Title/ description:

Analysis of knowledge and adoption level of the dairy farmers regarding clean milk production (CMP) practices

URL:

https://www.indianjournals.com/ijor.aspx?target=ijor:jdfhs&volume=34&issue=3&article=002