Green Innovation Centres for the Agriculture and Food Sector – Dairy Value Chain in Kenya

Green Innovation Centres for the Agriculture and Food Sector – Dairy Value Chain in Kenya

Project Description

The overall aim of the project is to enhance capacity of local dairy farmers in Western Kenya to produce safe milk, increase milk quantity and quality with the support of improved services, in particular through better organized dairy cooperatives. As a result, incomes of small-scale farmers, productivity of dairy cattle and food supply should increase and new jobs, especially for women and rural youth, should be created. Kenya’s dairy industry represents an estimated value of 4 % of gross domestic product (GDP), with an increasing domestic milk production (5.3 % per year), processing capacity (7 % per year), annual milk consumption per capita (5.8 %; currently at 110 litres) and a growing export potential.

Kenya’s dairy industry has a leading position in the entire region and strong economic interdependence with most of the neighbouring countries. However, more than 80% of the milk is produced by small scale farmers and about 80% of the produced milk is marketed through informal markets and consumed fresh. In order to include these small scale farmers into the formal milk market in view of increasing farmer’s incomes and milk quality, the Kenya National Dairy Master plan defines strategic actions.

The project addresses the key challenges to the implementation of those strategies, namely low production of dairy cows, seasonal cycles of low and high milk supply, poor milk quality and safety, poor animal feed supplies, lack of technical and management knowledge of producers, lack of investment by the private sector, market and product development, market intelligence and the risk of unfair competition from oligopolies in milk processing.

The animal health sector plays an important role as a support service, however, County Government services are insufficient to respond to the needs of small scale farmers and private animal health services are scarce. Service delivery through Animal health assistants, Articifical Insemination Technicians and through services by Agrovet Shops are being supported.

The main interventions to achieve the objectives are dedicated capacity building programs, support to local fodder production, marketing intelligence and advisory services to the dairy cooperatives and national dairy partners such as the Kenya Dairy Board.

GIZ decided to add a specific animal health component to this project in support to the county Veterinary Services to respond to identified needs for increased support of improved service delivery in view of improved local trade in dairy products.

The project works in close collaboration with other institutions like ILRI, KALRO, DTI, Bukara College and other ongoing international projects. The project works in close collaboration with other institutions like ILRI, KALRO, DTI, Bukara College and other ongoing international projects.

Services provided:
  • Training farmers in 33 different sites in Good Agricultural Practices and bringing together all key stakeholders, (farmer, dairy cooperatives, county livestock officers), covering key topics (dairy forage production, feeding and feed formulation, dairy young stock rearing), following the Agriculture technical vocational education and training (ATVET) curriculum and ATVET trained trainers are being engaged. The goal is to train up to 5000 farmers in 2019/20.
  • Strengthening dairy cooperatives by supporting the 25 registered dairy cooperatives to become more competitive in the formal milk market through implementing a clear strategy for value addition to increase their market shares and to play a significant role in the development of the DVC (main intervention through trainings for member management, service delivery, internal organisation and efficient management)
  • Foster the fodder value chain by supporting zero-grazing and improved pasture management as management options for increased dairy production using innovative approaches in the project area through approaches such as: the identification of fodder production and commercialisation as a complementary business, increase competitiveness through employment opportunities from the production, conservation, transportation to sales.
  • Promotion of fodder grasses such as Brachiaria, which are drought resilient, as a means to adapt to climate change, besides generating household income
  • Improve milk quality by providing training and support measures to producers (milk hygiene) and cooperatives (milk safety testing) as the informal milk market poses a risk to public health in terms of spread of zoonotic diseases, residues of antimicrobials and chemicals and aflatoxins; and by discussing milk price adjustment in line with milk quality with key and market stakeholders (e.g. Kenya Dairy Board, dairies operating in the project)
Country

Kenya

Origin of Funding

German Federal Ministry for Economic Cooperation and Development (BMZ), German Agency for International Cooperation (GIZ)

Name of Client

German Agency for International Cooperation (GIZ)

Project Dates

01/2019 – 12/2022

Project Value [EUR]

1,504,918

Proportion carried out by ADT Project Consulting

33

Staff provided

4 short-term experts

Name of partners, if any:

GFA Consulting Group

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