Pearson Employee Challenge Fund for Literacy

Chubashini Suntharalingam
Banumathy Devi Subramaniam
Background of Project
 Market Study of Dairy Farmers
in Peninsular Malaysia: MARDI

11 states

farmers = 234
Preliminary Study Findings
farmers = 111

7 states
Classification of Farms

Semi-
Commercial
Small 4%
89%

Commercial
7%
Average Milk Production 7 states

Zone Milk Production Per Day

(litre)
North
3,784
(Perlis, Penang, Kedah & Perak)
South
7,005
(Johor)
East
7,112
(Terengganu & Pahang)
Type of Milk & Dairy Product

Fresh (Raw)
Milk Pasteurized
95% Milk
2%

Flavored Milk
2%
Yogurt
1%
Marketing Channel for Fresh (Raw) & Pasteurized Milk
MCC
Farm

Small
Processor

Milk
Agent/
Large Vendor
Processor

Individual
Consumer
Retailer Restaurant Temple
Home
Fresh (Raw) Milk:
Ex-farm Price & Market
Ex-farm Price (RM/l)
Market Difference
Northern Southern Eastern
(Maximum -
Zone Zone Zone
Minimum)
Temple 4.00 4.26 5.00 1.00
Household 4.73 5.48 5.00 0.75
Agent/Vendor 3.46 3.45 3.39 0.08
Restaurant 3.97 3.68 3.88 0.29
Cooperative (MCC) 2.66 2.65 2.27 0.40
Retail Store - 3.50 - -
Difference
2.07 2.83 2.73 -
(Maximum Minimum)
Pasteurized Milk:
Ex-farm Price & Market
Ex-farm Price (RM/500 ml)
Difference
Market Northern Eastern (Maximum -
Zone Zone Minimum)

Household 4.00 5.30 1.30

Agent/Vendor 3.00 4.30 1.30
Retail Store 3.63 -
Difference
1.00 1.67 -
(Maximum Minimum)
Flavored Milk:
Ex-farm Price & Market
Ex-farm Price (RM/200 ml)
Difference
Market Northern Southern Eastern
(Maximum -
Zone Zone Zone
Minimum)
Household 1.95 1.50 2.40 0.90
Agent/Vendor 1.70 1.73 0.03
Restaurant 1.50 - - -
Retail Store 1.80 - - -
Difference
0.45 - 0.67 -
(Maximum Minimum)
Yogurt:
Ex-farm Price & Market
Ex-farm Price (RM/l)
Difference
Market Northern Southern
(Maximum -
Zone Zone
Minimum)
Temple - 6.00 -
Household 6.85 7.40 0.55
Restaurant 7.00 6.00 1.00
Retail Store 4.65 4.90 0.25
Difference
2.35 2.50 -
(Maximum Minimum)
Packaging

Flavored Milk

Pasteurized
Milk

Fresh Milk Yogurt

MARKETING ASPECT Key Findings

Awareness fresh vs powdered milk

a battle consumers are unaware of the difference

Fresh milk assist local small farmers (raise standard of living, food security, quality of life)

Powdered milk Benefits MNCs- Dutch Lady, F&N

Market price

Varies between formal and informal markets

Varies between zones

Distance & Demand

Not in tandem with feed price

Does not reflect the amount of labor & capital resources dedicated for dairy cattle farming

Quality testing

Rigid for small scale farmers

High cost (loss has to be absorbed by farmers)

Inconsistent lab results (in spite of same practices)

Market

Seeking new markets is an additional task

Competition between farmers & agents price determines

Limited assistance from governmental agencies (in some places DVS assist)
PRODUCTION ASPECT Key Findings

Lack of proper animal husbandry management

Need to be enhanced

Shortage of trained manpower

Animal welfare compromised?

Lack of good dairy practices

food safety & quality issue

Low breed performance and inadaptability to local environmental conditions

No local pure-bred dairy cattle (importation continues)

Poor dairy farm management

Poor record-keeping systems

Majority use hand written recording system

High input and feed costs

Feed cost remains as the largest single cost item for livestock production

Grazing land is almost non-existence; priority is given to developmental projects

Inadequate nutritious feed

Farmers are not familiar with feeding standards

They utilize low quality local resources that are available as substitute most often jeopardizes milk
yield & quality
PRODUCTION ASPECT Key Findings

Insufficient veterinarians on the ground

Lack emphasis on large ruminant

Erratic working hours

Not so conducive working environment

Lack of relationship building between MOA agencies & farmers

DVS too much too handle without support (officers, knowledge)

MARDI & DVS (research & awareness)

Distorted relationship with other agencies (Rural Development, State, Health, Trade & Consumers)

Lack of infrastructure development (water, electricity, road)

No established cold chain system

Lack of Training & Education in Handling Large Ruminants

Newly qualified veterinarians are not equipped with the knowledge & skills

Lack of interest to venture into large ruminants services

Anchor Company & Farmers teething issues?

No mentorship

Selection of farmers

Distribution of equipments & facilities
Key Findings of MARDIs Study
(Preliminary)

Market price

Varies between formal and informal markets

Varies between zones

Varies between type of milk & dairy product

Majority of dairy farmers are either school leavers or only attained primary school
education

Dairy farmers are aging (> 50 years old)

Majority have very minimum English literacy level (familiar with one language, i.e.,
Tamil)

Challenge in understanding emerging issues concerning:

Dairy farm management
Raising income level

Good dairy practices
 Way Forward

Production issues are too much

Dairy sector has been neglected for almost 50 years. Governments aim to
reduce imported dairy products begin in the late 1960s. But we are in the
same state as we started

Lack of focus and consistency

Supply chain is distorted no structure, system, support to develop

So is it realistic to increase SSL without adequate support for the farmers
& sector?

Demand for dairy products are increasing but no serious effort have been
undertaken to tackle issues & challenges

Marketing the way to go

Capitalize on the latest developments & market factors

Build on consumers

Welfares of farmers & dairy cattles
Opportunities

Willingness to pay for added-values in a product (e.g., good welfare practices)

Image of health & comfort of cows influence consumers purchasing for
organic milk in Japan (Managi et al., 2008)

Consumer were willing to purchase yogurts labeled with high animal welfare
standards (Napolitano et al., 2008)

SO

Focus on consumers needs

Incremental approach build momentum

Tackle market issues  lead to satisfactory consumer and
farmers (and not forgetting the cows)

Then slowly move towards increasing production capacity once basic needs
are taken care, we can slowly move on to the bigger picture
Opportunities

In purchasing animal-based products, consumer are moving towards:

Credence based characteristics - belief in or acceptance of something as true

Extrinsic attributes

e.g., animal welfare, food safety, nutritional content

Demand for animal welfare products is growing

Demand function

QMILK = f (PMILK, Prelatedgood, Y, T, S)

Q --> Quantity of milk demanded

PMILK --> Price of milk

Prelatedgood --> Price of related good

Y --> Income

T --> Taste and preferences

S --> Socio-economic factors
Pearson International Grant
Pearson Employee Challenge Fund
for Literacy

In July 2015, Pearson launched the Employee Challenge Fund for Literacy - flagship social
impact campaign, Project Literacy

Aim: to help their employees support charitable organisations that are tackling illiteracy
in bold and innovative ways in their local communities

Project Literacy aims to close the literacy gap in target geographies so that all - no matter
their language, race, class or gender - have the opportunity to reach their full potential
 Project Goals
1. To educate, train and promote good farm management and best dairy practices and raise
alternative income (i.e. incorporating agro-tourism)

2. To exchange information among dairy farmers, civil society and grass root organizations,
veterinary officers, extension personnel, scientists and policy makers concerning issues and
challenges concerning dairy farms in Peninsular Malaysia

3. To discuss the strengths and weaknesses of current dairy farm management and practices

4. To allow transfer of knowledge and skills gained to other dairy farmers

5. To replicate this project model in other states and districts

6. To innovate new literacy solutions for dairy farmers using Pearsons products and services
 Pearson
International
Grant

Pearson
IGAUPM
Malaysia

Taylors
MARDI DVS Literacy
University

Farm
Identification of Development of
Agro-tourism Management
farmers Module
(Research)

Mobile Apps & Dairy Practices Training venue & facilities (including
Website (Research) food for trainers & farmers)

Marketing Diagnostics & Quality Assurance

Dairy Product Service
Information
Development
System
Assistance from dairy,
diagnostics units & state
ground personnel

Local ground
transportation for
monitoring purpose
 Activities

Training Monitoring Documenting

3 states Limited farmers - 15

Johor (5 in each state)
Melaka
N. Sembilan

Open to all
dairy farmers & personnel
 Training: Workshops
#1 3 sessions:
March/ 1) Baseline on farm management & dairy practices
April 2) Training on farm management & dairy practices
3) English Literacy Assessment
#2 2 sessions:
May/
June 1) Sharing of experiences: farm management & dairy practices
2) Awareness on Agrotourism
3) New Product Development
Aug/
#3 3 sessions:
Sep 1) Sharing of experiences: farm management & dairy practices
2) Packaging
3) M-applications
#4 2 sessions:
Nov/
Dec 1) Sharing of experiences
2) Wrap up
Monitoring

On the ground

Limited to 15 farmers availability of resources

Collection of data & consulting one-to-one with 15 farmers

Documenting

Photograph

Testimonies

Case study
Key Outcomes

Improvement in dairy farmers literacy levels in terms of reading, writing,
speaking and listening in English

Increased extension personnel, civil society, scientist and policy makers

confidence in supporting, facilitating and enhancing dairy farmers farming
skills

Increased behaviours and attitudes in adopting and transferring skills, i.e.,

training other farmers, promoting good dairy practices
Outputs

Production, adoption and distribution of printed, multimedia and
software/internet applications and materials in three languages:

Malay, Tamil and English

Case study

10 dairy families supported

Up to 60 personnel will be trained, including Pearson employees, IGAUPM

members and the target community
Formalization of Project

Between Pearson & IGAUPM

Venue: Taylors University, Lakeside Campus

Date: Feb. 17 2016
Time: 3.00pm
Thank You