Overview
The study, conducted by Jomo Kenyatta University of Agriculture and Technology (JKUAT), Central Artificial Insemination Station (CAIS), and other partners, and supported by Kilimo Trust, examines the smallholder dairy sector in Central Kenya. The study aims to identify challenges, opportunities, and investment measures to promote growth and competitiveness in the sector.
Key Findings
- Dairy Industry Background:
- The dairy industry is vital for over 600,000 smallholder farmers in Central Kenya.
- The region produces about 2 billion liters of milk annually, with an estimated value of 30 billion Kshs.
- Value Chain Structure:
- The value chain includes production, collection and bulking, cooling/freezing, processing and packaging, transport and distribution, and retailing.
- Key players include small-scale farmers, dairy cooperatives, self-help groups, processors, and informal milk traders.
- Challenges:
- Low milk production per cow (1,000 liters per annum) compared to global standards (8,000 liters).
- High production costs, poor livestock genetics, and low uptake of artificial insemination (AI).
- Poor access to quality feeds, veterinary services, and extension services.
- Inefficient milk processing, with only 30% of installed capacity utilized.
- Transport and marketing challenges, including poor roads and lack of cooling facilities.
- Weak domestic market and limited export opportunities.
- Investment Opportunities:
- Farm Level: Improving farm management, establishing dairy farms, and providing farm enterprise management services.
- Breeding: Enhancing AI services, producing and distributing liquid nitrogen, and supporting embryo transfer activities.
- Feeds: Promoting high-value forage crops, fodder preservation, home feed rationing, and establishing feed mills.
- Cooling and Bulking: Investing in cooling facilities, refrigerated vehicles, and technical support.
- Processing: Expanding production of value-added products like cheese and powdered milk.
- Transport and Logistics: Improving transport systems and logistics to reduce milk wastage.
- Financial Services: Providing credit and financial products tailored to dairy farmers.
- Technical Support:
- Existing projects like the National Agricultural and Livestock Extension Project (NALEP), East African Dairy Development Project (EADD), and Kenya Dairy Development Programme (KDDP) provide training, extension services, and capacity building.
Recommendations
- Improve dairy breeds and production potential.
- Strengthen farmer groups and cooperatives.
- Enhance technical assistance for organizational development and market strategies.
- Invest in cold chain infrastructure and support farmers to ensure sustained milk volumes.
- Promote local milk consumption and establish school milk programs.
- Develop quality control mechanisms and improve road infrastructure.