BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

Attachment 2. Opportunities of systematic development of meat sector stakeholder
cooperation (draft)
A common method of improving herd composition is considered culling which is mainly used by
herders that own more than 1000 animals. On the other hand, meat processors say that they have
difficulty in negotiating with these herders in terms of quality. In order to improve the linkage, it is
important to coordinate and integrate the activities of herders, veterinarians and meat processors,
so we offer the following win-win system for this purpose.
Other herders
Buying livestock
Herders/ meat providers-sellers
(buy-feed for weight-sell)
Consulting and other additional
services
Veterinarian/
Veterinary clinic
Veterinary service
charge
Feeding & adding weight
Access to veterinary
service
Selling livestock
Downpayment
Meat
price
Veterinary
service charge
paid to vets
Certification of livestock for
compliance of requirements
Laboratory
Meat processors
/meat processing plants &
meat exporters/
1. This proposal focuses on only herders that sell animals after feeding additive for extra
weight
2. Herders engaged in this type of business buy livestock from other herders, feed with
additive feed, get all necessary veterinary services and provide meat processors with
hygiene and high quality meat
3. For procurement of animals, meat processors could make down payment to herders so that
the herders would not practice the difficulty of high bank loan interest rate.
4. On one hand herders are in short of cash and on the other hand vet clinics lack turnover
capital, it is common that vet service do not reach to every herder household on time. This
issue can be solved within the system framework like meat processor could make three
party contracts with herders and veterinarians stating that the vets provide all services to
herders’ herd on time with high quality and get paid by the meat processor, not from a
herder. As a result, all animals that the herders supply to processors would meet all
standards and requirements.
5. As this will impact vets to accelerate the turnover of their capital, they would be willing to
serve for contracted herders as well as provide any other free of charge consulting related
to vet service.
6. Herders will also learn and gain experience in livestock quality and fodder use in order to
quicken the business cycle and secure potential business to supply processors with
animals.
7. If this system works well, meat processors will be able to start procuring animals effective
from June.
8. As local laboratory has to be certified and well functioning, the project support is necessary.
28