Innovative credit for livestock value chain development
1. Innovative credit for livestock value chain development
Objective:
To stimulate innovations in the different components of the livestock value chain
by existing lending institutions
Livestock production credit innovations
Business oriented enterprise –larger numbers, better feeding ,more cycles
Commercial Commercial Apiculture farm
Egg laying unit fattening oxen fattening sheep
Livestock input supply/service credit innovations
Pullet production Coop input shop Community Private apiculture shop
women groups Para vet
Livestock processing marketing innovation
Private honey extraction Cooperative milk shop
Lessons learned
• Some MFIs are ready to vary loan sizes and collateral requirements for commercially
oriented value chain interventions
• Many district level lending institutions , especially cooperatives are insufficiently
equipped to deal with loan administration for commercially oriented loans, resulting in
delayed/poor repayment
• Flexibility in the use of production loans is to be developed since initial investments are
seen as a stepping stone in the development process and /or production and market
conditions changes during the loan period.
• Lending for small scale agri business shows excellent repayment
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