Shared Services




 The Context

SAGCOT CTF is financing diary project in Njombe and Mbeya, which are being implemented by two milk-processing companies namely ASAS Dairies LTD and Njombe Milk Factories LTD. The objective of the project is to strengthen and deepen relationship between the smallholder diary livestock keepers and the companies while addressing milk production, productivity and quality challenges at individual farmers’ level within their respective associations. The project involves a total of 1,100 smallholder dairy farmer in their associations. Most of these farmers are in three major associations namely Njombe Livestock Farmers Association (NJOLIFA), MUWAMARU and MSHIKAMANO. Identified challenges production level includes poor hybrid vigour, availability of animal feeds and minerals, availability of extension services. Due to shared problems and geographical position for the targeted farmers, the project implementers resolved to develop a shared  service project for the farmers in Njombe under clustering approach in order to create synergies and leverage efforts from the stakeholders for the maximization of benefits to the farmers. Discussion with the offtakers and stakeholders which was held in Morogoro on 20 February 2016 agreed to start with extension officers as a shared service for the farmers in Njombe. A consensus exists that extension officers, if functioning effectively, improve agricultural productivity through providing farmers with information, skills and knowledge that help them to optimize the use of limited resources.

Framework for Extension Officer Utilization as a Shared Resource   

The  framework was built upon the following assumptions:

  • The extension officers can either be employed by the Local Government Authority or the Off-Takers themselves. In this model the Government will also behave as an Off-Taker for the farmers that do not belong to any off taker.
  • The extension officers can be utilised to serve farmers from multiple off takers as long as they are within the same geographical area of influence regardless of their market seeking affiliations.
  • The extension officer’s remunerations will be managed by his/her employing Off Taker only. It will be the responsibility of the employing off taker to claim/recover for compensation fee for the extra amount of time spent by extension officers in serving farmers of the other (Utilising) off takers.
  • The compensation fees to employing off taker may be paid by utilising off takers on a prepaid basis or on a post-paid basis depending on the nature of activities in which they engage.
  • Service providers through which the extension officers will be engaged by the off takers will have special agreement with their off takers on how their services shall be purchased.

The proposes framework, therefore, has five events each of which may include the key role-players i.e. (1) Extension Officer (2) Employing Off-Taker (3) Utilising Off-Taker (4) 3rd party Service Provider and (5) Njombe Shared Services Committee.  





Implementation Framework for the Shared Services

Njombe Shared Services Committee (NSSC) shall be Co-Chaired by the District Executive Director of the two districts in Njombe. SAGCOT-CTF Executive Secretary will be the secretary of the committee assisted by a team of experts from DED’s office in Njombe. The NSSC will be composed of DEDs, NJOLIFA, Njombe Milk Factory, ASAS, and SAGCOT CTF. Other members may be co-opted as it may be necessary (e.g. service providers, capacity building institutions, etc.)

At farmers level the model propose farmers to build strong committees at group level, for the smooth implementation of the project. The committees will be responsible for daily follow-up on the particular service rendered to them and report to the group leadership.