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)?

15/07/2023

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

Yes

1.4 Reference(s) to Questionnaire(s) on SLM Technologies

2.1 Short description of the Approach

This approach links dairy cooperatives with a dairy plant, KOUFUKU International Limited (KIL), for milk marketing. It is an established dairy value chain that addresses milk and dairy product marketing issues and improves the livelihoods of many small dairy farmers in eastern Bhutan.

2.2 Detailed description of the Approach

Detailed description of the Approach:

This approach links dairy cooperatives with a dairy plant, KOUFUKU International Limited (KIL), for milk marketing. It is an established dairy value chain that addresses milk and dairy product marketing issues and improves the livelihoods of many small dairy farmers in eastern Bhutan. The approach encompasses milk cooperatives, collection centres, milk transport vans, and the processing unit operated by KIL. Currently, milk is supplied to the company by approximately 22 milk cooperatives, each consisting of land users engaged in dairy farming. This documentation focuses on the linkage between KIL and one such cooperative named Samphel Chirphen Jersey Detshen of Udzorong Gewog in Trashigang Dzongkhag.
At the heart of the system are collection centres, strategically placed at each dairy cooperative and equipped with chilling machines. Managed by the dairy cooperatives, these centres serve as crucial points for milk collection. A dedicated milk transport van and driver is arranged to facilitate the transportation of milk from individual land users to the collection point, and onward to the processing unit. Designed with insulation, the van ensures the quality of the milk is maintained, preventing deterioration during transit. The pricing structure for land users is influenced by their choice in milk collection and transport: those opting for the company's services receive a lower price per litre.
The KIL processing unit, situated in Chenary, Trashigang Dzongkhag, is a subsidiary of Druk Holding and Investments Limited (DHI). This unit produces a variety of processed milk products, including "Druk Zambala Cheese," salted and non-salted butter, stirred yogurt, gouda cheese, and cottage cheese. This approach improves the livelihoods of land users, encouraging cooperative members to increase milk production which ultimately increases cash income.
For KIL, the company's involvement aims to augment processing capacity. Despite having the potential to process 4000 litres of milk daily, only 44% of this capacity was utilized as of 2021. The approach embraces an inclusive model, involving smallholder land users in cooperative formation and connecting them to the market, making it a successful value chain intervention.
The implementation method of Samphel Chirphen Jersey Detshen employs a consultative approach, engaging various stakeholders such as the Gewog Livestock Extension Officer, Dzongkhag Livestock Officer, CARLEP officials, and a representative from KIL. This collaborative method enables land users to voice their needs, ensuring decisions that benefit the community.
The stages of implementation involve the initiation of cooperative formation driven by awareness created by the Livestock Extension Officer. Group formation facilitates resource-sharing and reduces workload of land user. Further, subsidies and incentives support from the government are directed towards the cooperative rather than individual land users, emphasizing the importance of forming cooperatives to maximize benefits. The dairy cooperative members were supported to construct improved cattle sheds and biogas plants to improved livestock rearing.
Initially, the Samphel Chirphen Jersey Detshen faced marketing challenges, prompting government intervention to connect them with KIL. Consultations resulted in an agreement where land users committed to supplying a minimum of 100 litres per day at a negotiated rate of Nu. 35 per litre, establishing KIL as their end market. Subsequently, improved cattle breeds were acquired, and the cooperatives increased their daily milk supply from 71 to 280-300 litres. Stakeholders, including Gewog Livestock Extension Officer, Dzongkhag Livestock Officer, Gewog Officials, and CARLEP-IFAD, play pivotal roles in providing technical guidance, subsidies, and funding. Regular monitoring ensures the success of the activity.
In summary, this approach benefits land users by enhancing marketing services and providing sustainable sources of household income – and indirectly improves SLM through encouraging better husbandry of dairy cattle and associated biogas plants.

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 approach aims to establish an efficient marketing system of the milk by creating a linkage between the land user and the milk processing unit. it will also contriutes to increased in income and improvement of land users' livelihoods.

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	external support	Gewog Livestock Extension Officer motivated the land users to form cooperatives by creating awareness of the benefits involved in working in a group rather than individually.
planning	interactive	All the stakeholders (Gewog Livestock Extension Officer, Dzongkhag Livestock officer, representatives of the KOFUKU International Limited and CARLEP-IFAD officials) were involved in the planning process.
implementation	interactive	All the stakeholders with related expertise were involved in the implementation process. For example, the Dzongkhag engineer, Gewog Livestock Extension Officer, Dzongkhag Livestock officer, Gup, CARLEP-IFAD officials and land users were involved in the construction of the milk collection shed,
monitoring/ evaluation	interactive	External monitoring is done by CARLEP-IFAD officials, the Gewog Livestock Extension Officer, Dzongkhag Livestock Officer. Internal monitoring is done by Thrizin to ensure the minimum milk capacity (100 litres) is met.

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:

• mainly SLM specialists, following consultation with land users

Explain:

Implementation of the biogas plants and improved cattle shed construction was introduced by the Dzongkhag Livestock Officer in consultation with the land users.

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

If relevant, specify gender, age, status, ethnicity, etc.

There were 34 members in the cooperative consisting of 25 male and 9 female, aged between 35 to 50 years old all belonging to Sharchop ethnicity.
The gender composition is based on the head of the household registered in the census although all the family members (both male and female) are involved in the activity.

Form of training:

• farmer-to-farmer
• demonstration areas
• courses

Subjects covered:

Cattle shed and biogas plant construction and their benefits. Fodder grass plantations such as napier, super napier (Pakchong), and others.

4.2 Advisory service

Do land users have access to an advisory service?

Yes

Specify whether advisory service is provided:

• on land users' fields
• at permanent centres

Describe/ comments:

The Gewog Extension Officer is involved in providing advisory services based on the need.

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 institution is strengthened through the approach as there were only 10 members in the cooperative in 2022 which increased to 24 as of 2023.

Specify type of support:

• capacity building/ training

Give further details:

Training provided by DLO for biogas construction

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

Yes

Comments:

External monitoring is done by CARLEP-IFAD officials, the Gewog Livestock Extension Officer, the Dzongkhag Livestock Officer and Gewog Officials. The monitoring officials conduct the site visits to see the implementation of an improved dairy shed, improved cattle breeds, fodder grass plantation and biogas plant. The monitoring is mainly done to meet the objective of the funding agency and service providers i.e. to increase milk productivity and improve the livelihood of the land users.

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

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

There is no annual budget allocated for the approach as the linkage is well established. The land users are equipped to sustain themselves. However, if new challenges arise, the budget is sought from various stakeholders.

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):

1. Financial support
Nu. 11,700/- (USD 140.54) provided for biogas construction for individual households
70% subsidy for procurement of improved cattle breeds
2. Equipment
70% subsidy was provided for the deep fridge for individual household and 3 large for the collection point (30-40 litres) 30% of the amount was paid by land users. Doner funded 100% for the milk collection can, butter churner, and chiller machine.
3. Construction materials per household
Donor funded 100% for the biogas construction materials 8 bags of cement, metal, pipe, stove
Donor funded 100% for the improved cattle shed construction materials 18 bags of cement, 18 number of CGI sheets, half truck sand.

5.3 Subsidies for specific inputs (including labour)

• equipment

• agricultural

• construction

• infrastructure

If labour by land users was a substantial input, was it:

• voluntary

5.4 Credit

Was credit provided under the Approach for SLM activities?

Yes

Specify conditions (interest rate, payback, etc.):

Land users in the group can avail loans of up to Nu. 20,000 (USD 240.25) loan payable on quarterly basis for 3 years.

Specify credit providers:

Bhutan Development Bank Limited - A bank focusing on rural development.

Specify credit receivers:

Land users

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:

Support needed for the establishment of the linkage is completed. Hereafter, the land users can sustain themselves without external support.

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the land user’s view
The major strength of the approach is milk marketing where land users get access to the market without having to worry about transportation. On the other hand, KOUFUKU International Limited can increase its production capacity of milk products.
Forming a cooperative and working together enabled land users to avail various support from the government as majority of the support is provided to the group than individual households.
The approach improved household income leading to improved livelihoods of the land users.

Strengths/ advantages/ opportunities in the compiler’s or other key resource person’s view
Encourages other land users to form milk cooperatives. Udzorong Gewog is one of the remote areas of Trashigang Dzongkhag and the ability to establish linkage and generate income from livestock farming would encourage other land users from different chiwog and gewogs to form milk cooperatives. This would ultimately improve the living standard of the community and country.

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?
The land users feel the price for one litre of milk is less (Nu. 35/-) which is barely enough to buy karma feed (formulated cattle feed costing Nu. 1850/- per bag) and mustard cake (Nu. 1900 per bag). The use of fodder grass (pakchong, napier, and guatemala) gives low milk production compared to processed feed.	Sensitize and institute quality based payment for milk, encourage formulation of local feed, and adopt TMR
Need for more members in the cooperative to increase the overall productivity.	Sensitize and encourage other farmers to join the cooperative.
The spread of cattle diseases such as lumpy skin disease (LSD) leads to the loss of cattle and reduced milk production.	Need for immediate and improved veterinary service in the country. Encourage to put in place biosecurity measures.

Weaknesses/ disadvantages/ risks in the compiler’s or other key resource person’s view	How can they be overcome?
The land users are provided with lots of subsidies and inputs making them highly dependent. Which could reduce their capacity to innovate and search for solutions on their own.	Subsidies should be given with conditions.

7.1 Methods/ sources of information

7.2 References to available publications

Title, author, year, ISBN:

Norbu. (2021). Linking dairy farmers to koufuko: a case of a successful dairy value chain and marketing in the east. CARLEP. Retrievef from https://carlep.gov.bt/linking-dairy-farmers-to-koufuko-a-case-of-a-successful-dairy-value-chain-and-marketing-in-the-east/

Available from where? Costs?

https://carlep.gov.bt/linking-dairy-farmers-to-koufuko-a-case-of-a-successful-dairy-value-chain-and-marketing-in-the-east/

7.3 Links to relevant information which is available online

Title/ description:

Koufuku International Limited

URL:

https://kil.bt/

Title/ description:

Koufuku International Limited

URL:

https://www.instagram.com/koufukudairy/?hl=en