UN Division for Sustainable Development

Case Study Detail Record

Organization type:	Government

Name of Ministry/Agency:	Department of State

Country:	United States of America

Name of Focal Point:	Hiram Larew

Initiative Title:	Integrating Smallholder Producers into Vibrant Dairy Product Value Chains in Kenya

Internet links:	http://www.usaid.gov/ke/ke.agbuen/activities/kddp.html

Scope:	National: - Kenya

Status:	Ongoing

Timeframe:	Start: End:

Lead Institution:	U.S. Agency for International Development

Stakeholders/Partners:	Samll holder dairy farmers in developing countries.

Relevent issues:	- Food security and sustainable agriculture - Enhancing agricultural productivity through adequate and sustainable inputs - Community-based and indigenous approaches to food production - Diversifying agricultural production systems - Access to financing, investments or markets - Capacity building - Technology transfer - Poverty reduction strategies and policies - Reducing rural poverty - Empowering the poor, including women and indigenous people - Equitable access to education and other basic services - Improving access to energy, clean water and sanitation

Objectives/Challenges:

About 600,000 smallholder farmers produce milk in Kenya on farms of less than two hectares that support two or three dairy cows. Since September 2002, USAID\Kenya has supported a consortium of organizations led by Land O’Lakes to implement the Kenya Dairy Development Project. This project takes a market-based, value chain development approach to increased smallholder milk production focusing on training and technology transfer, development of dairy business services providers, support for producer-owned milk cooling businesses, assistance to dairy processors for product innovation and promotion of milk consumption. Dairy business service providers transfer knowledge and provide access to technology to producers, delivering artificial insemination services and implementing “farmer field schools” in collaboration with Government of Kenya extension agents. Producer-owned businesses operate milk cooling businesses and market services and inputs to member-owners.

Lessons Learned:

Smallholder dairy farms in Kenya milking two to three cows can be highly productive when provided with training, technical assistance and access to market-based inputs. Project impacts can be sustained through dairy business service enterprises and producer-owned milk bulking and cooling businesses. Quality dairy products are a tradable commodity that generate export revenues and promote rural social and economic development.

Summary:

Key Results -

Important results and impacts of the Kenya Dairy Development Project include:

• Over 31,790 smallholders reached with direct technical assistance and training, some 38% of whom are women.

• 24% increase in milk production levels as a result of training in feeding and health management and access to improved dairy cattle genetics. Cows that are daughters of US bulls produce as high as 40 liters of milk on some targeted farms.

• The volume and value of traded dairy products has increased by 65% and 92%, respectively, with the volume of Kenyan dairy exports growing by 10.6% over a four-year period, with new markets opened in East Africa and the Middle East.

• 28% reduction in the cost of milk production among targeted smallholders. Some 1650 business service providers who market US dairy genetics and advise client smallholders on management practices have been trained and equipped.

• Over 60,000 doses of semen from genetically superior bulls have been sold, most of them from US bull studs, benefiting some 82,000 dairy smallholders.