Transforming The Dairy Sector Through Micro-dairies
Background
The dairy sector is one of the biggest sectors in Kenya’s economy employing many farmers and has the potential for transforming livelihoods. The dairy sector is poised to grow rapidly as the country urbanizes and incomes rise. However, the dairy production model needs rethinking if the sector is going to be a driver of the transformation of farmers and rural areas. Currently, many big dairies are underutilized which means they are not operating optimally which translates to lowered incomes of dairies and thus farmers. The oligopolistic structure also means the few dairies have power and can capture much of the benefits from the sector. This project aims to empower farmers in remote areas by revolutionizing on-site milk processing to enable micro dairy business models. Similar transitions are currently ongoing in Europe and the Americas. There is a need for viable models for the Kenyan agriculture environment through further value addition of milk onsite, let it be yoghurt, cheese, or other milk-based produce.
The Challenge
Endless Africa and TecSols Solution are keen to drive the revolution in the dairy sector through the development and deployment of Micro dairy solutions.
What are some examples worldwide to be adopted by Kenyan dairy farmers for proper on-site refinement of milk? How should the local ecosystem be considered for enhanced utilization of nearby resources and know-how?
What if on-site milk processing became the new standard for smallholder farms, empowering farmers with the ability to control every step of the process and unlock new levels of value and profitability?
What will it take to make this product safe to operate? How will the health and safety of the consumers be addressed?
About Endless Africa
Endless Africa Limited (EAL) is an impact investing partner at the forefront of transforming Africa’s economic structures and shaping the continent’s future by catalyzing increased productivity, securing market access, and ultimately growing returns to farmers and investors. Endless Africa Limited aims to disrupt the Agriculture value chain for profitability and make it bankable.
Key drivers:
- Improvement of productivity
- Adaptation of key research and alignment to existing policies
- Bridge the gap between policy and research,
Value chains explored:
1. Rice
Through training farmers on best practices; choice of best variety to plant, spacing and mechanization of the farming practices. Offering extension services and contracting farmers for purchasing ready produce. The yields increased from 18 bags to 32 bags per acre and 32 to 64 bags per acre in 2 years.
2. Dairy value chain
EAL has a goal to improve value at the farm level. Already their farmers are provided training on the best feeds to give the animals and where to source, recommend on acquiring animals with the best genetics and animal husbandry and processing. By following best practices, an achievement of lower cost of production, and increased yield through feeds and husbandry was reported.