East Africa Dairy Development: Planning for progress

We would like to say a big thank you to all for your input and ideas over the past year – it has been a pleasure to work with you as always. Our Staff recently took part in a dynamic Annual Review and Planning Meeting (ARPM) in Kigali, Rwanda to evaluate the project priorities for 2012.

Participants at EADD Annual Review and Planning Meeting 2011 held in Kigali. Participants came from Uganda, Rwanda, Kenya, Tanzania and Ethiopia.

The three countries –Rwanda, Uganda, Kenya- where EADD project is currently implemented, presented 18 month planning and operational budgets. EADD2 presented plans to expand project operations to Ethiopia and Tanzania.

In addition to sustainability of the Hubs after EADD1 exits, other cross cutting issues included: extension services, access to markets and governance at Dairy Farmer Business Associations (DFBA).

The meetings combined presentations and problem solving group discussions that focused on finding solutions to key issues in each country. Participants zeroed in on some activities that could lead to sustainability of DFBAs. To highlight a few: knowledge sharing between EADD personnel and DFBAs steering committees in an effort to share best practices; Capacity building of DFBA boards and steering committees; Performance contracts when hiring DFBA managers and extension workers.  Heifer International Chief Operating Officer Steve Denne, Acting Vice President for Africa Elizabeth Bintliff and Bill & Melinda Gates Foundation representative Kristin Grote attended the meeting.

Like many projects at this point, we will face some challenges but with your ongoing support we are confident that 2012 will be an exciting and rewarding year for EADD.

If you would like  country presentations from the ARPM please send a request to eadd@eadairy.org or visit our wikispaces page. You can however browse  EADD in pictures by clicking flickr.

We would like to take this opportunity to wish you all a Merry Christmas and a healthy and prosperous 2012.

 

Tanykina Dairy Plant Limited Expands Operation

Guest of Honor Minister of Livestock in Kenya, Hon. Abdi Kuti joins traditional dancers during the ceremony

In just three years, Tanykina Dairy Plant, located in Kipkaren Division, Nandi North District, in the Rift Valley province of Kenya has made several entrepreneurial highs in small business dairy industry.   Recently, shareholders celebrated commissioning of a newly constructed-farmer owned- state of art milk chilling plant. The milk plant previously rented its business premises.  Additionally, in the last few months the plant has reported increased volumes of bulked milk; in addition to adopting quality control measures that ensure most milk collected has low bacteria counts.

Tanykina Dairy Plant is engaged in provision of Artificial Insemination (AI) and veterinary extension services, financial services, a health care scheme for shareholders, collection, bulking, and marketing of milk to share holders in. The plant currently collects and markets approximately 30 000 litres of milk per day. It has 6000 shareholders, all dairy farmers and each of whom receives an average monthly payment of KES 4000.

Kenya Minister for Livestock Hon Abdi Kuti attended the commissioning.  He commended the dairy plant and East Africa Dairy Development Project (EADD) for its interventions to raise the income of rural dairy families through bulked milk collection and marketing saying, “I believe this is the way we must develop people living in rural areas in order to fight poverty and create wealth at the grass root level. This programme on value addition through chilling will bring a dairy revolution in not only Kenya but the continent at large.”

Minister Abdi Kuti is joined by the Chairman of the Tanykina dairy, Silvanus Chemegen and EADD Country Project Manager Augustine Cheruiyot to cut the ribbon and officially launch the new Tanykina business premise

He noted the role of EADD hub model as a catalyst for initiating rural economic growth especially through the provision of financial services in the village centres. Through the centres, he noted rural people access money and financial services thus providing them with dispensable cash, which in return promoted rural economic growth.  Mr. Silvanus Chemengen, Chairman of the dairy plant gave the history and growth of the milk enterprise. According to him, the plant had grown from collecting 526 litres of milk per day in 2005, to the current collection of 30 000 litres per day with annual earnings of 292 million in 2010. He noted some of the challenges faced as limited facilities to handle increasing milk volumes, disease outbreaks affecting livestock, poor road networks in the villages that delays supply of milk to the cooling plant thus leading to increased spoilage.   The Chairman requested for assistance from the Ministry of Livestock in marketing for better milk prices and increase in Artificial Insemination (AI) straws to ensure better breeds and increased milk production. In response, Hon Kuti announced that the government had upgraded a nearby station, Kabete, to a fully-fledged state corporation. This means that the government will allocate Kabete station with funds to subsidize on its AI costs and ensure that farmers access AI straws at reduced prices.

The Minister instructed that the division identify two youths (a male and female) who the Ministry of Livestock Development will sponsor for training in Animal Health. Upon completion of training, the two will be attached to Kipkaren to support farmers.

Speaking on behalf Heifer International, Deputy Country Director Mr. Crispin Mwatate, emphasised on the need to avail to farmers services that will increase the productivity of their livestock. EADD model supports the strengthening of organizational capacity in the dairy farmer owned institutions so that they are able to govern their business sustainably, make profit and pay more to the farmers. According to Augustine Cheruiyot, the EADD-Kenya Country Project Manager, the Kenya project is working with over 105,000 dairy farmers registered in 21 cooling plants in Rift Valley and Central provinces. He stated that, in the last six months, the cooling plants have paid farmers a combined total of Kshs. 1.1 Billion from milk sales.

Cheruiyot expressed his confidence in Tanykina as it received a loan of Kshs. 9, 829, 775 from CFC Stanbic bank to aid in setting up of four satellite coolers in Kaptebee, Kaptel, Kapkoros and Lemook.

CFC Stanbic bank presents a loan of Kshs. 9, 829, 775 to representatives of Tanykina. The loan shall be utilised to launch four satelite coolers by Tanykina dairy. The satellite coolers will reduce the amount of time farmers living far away from the main chilling plant spend while transporting milk to the main chilling plant. This will ensure that milk is chilled in good time, and will reduce the possibility of spoilage.

 

Nestle SA Chairman feted at Kabiyet Dairies

Nestle SA Chairman, Mr. Peter Brabeck Letmathe looking at Kabiyet Quality team testing milk before receiving into the chilling plant

We at Nestle believe in creating value and we look forward to a long term sustainable relationship with Kabiyet Dairies Company Limited… Mr. Peter Brabeck Letmathe, Chairman, Nestle SA

Kabiyet Dairies Company Limited is continually reaping fruits from its hard work. This was witnessed by the visit of Nestle SA Chairman Mr. Peter Brabeck Letmathe who was impressed by the success and growth of Kabiyet Dairies in a short period time (24 months). The Chairman was accompanied by among others Frits Van Dijk – Executive Board Member, Nestle Group, in charge of Zone Asia-Oceania-Africa, Pierre Trouilhat – Region Head and CEO of Nestle Equatorial African Region, Hakan Misri – Managing Director of Nestle Kenya Ltd.

Speaking on behalf of Kabiyet Dairies, the Chairman Abraham Rugut, was grateful for the partnership between EADD, Kabiyet and Nestle which has been beneficial for the dairy farmers in the area.

“Through the investment in experts who have come to train our farmers on better quality management systems our milk quality has continually been improving and we are hoping to meet Nestle global standards in order to enjoy better milk prices.”

Mr Rugut revealed that Kabiyet Dairies has one main Chilling plant at Kabiyet centre and two satellite coolers at Sangalo and Koisolik respectively which are 6 Kms apart from each other. These satellite coolers are located near the villages’ and this move has helped improve milk quality. Time spent on transportation is lessened hence reducing the possibilities of milk spoilage and spillage. Milk in these three centres is normally collected, bulked and chilled, ready for collection by the processor. Apart from these coolers Kabiyet Dairies has 13 other collection centres for only collecting and bulking milk. “It is our wish for Nestle to assist in the acquisition and setting up of 13 satellite coolers for chilling of raw milk in the villages’ in order for us to better the quality of our milk.” He said.

Sharing a happy moment; Mr. Abraham Rugut, Kabiyet Dairies Chairman (left), Mr. Peter Brabeck Letmathe, Chairman Nestle SA (centre) and Mr. Tahir Mahmoud, Nestle Consultant attached to Kabiyet

In closing the Chairman revealed that the division has a milk potential of over 100,000 liters per day from well managed cows daily from the morning milk only. “There are tremendous untapped volumes in the evening milk and plans are underway in convincing dairy farmers to deliver the evening milk to the chilling plant.” In line with the Kabiyet Dairies’ strategic plan of 2011-2016, the dairy is aiming at collecting 70,000 litres of milk before the end of the year (2012).

Speaking for EADD, Moses Nyabila the Regional Director expressed his delight in the partnership between Kabiyet and Nestle. “There is no better milk partner in the World than Nestle.” Says the Regional Director and added on “EADD is a silent partner in the developmental arena for a short span of time and we aim at linking dairy enterprises like Kabiyet Dairies with development partners with a long term objective.” Moses’ concluding remarks were towards encouraging private public partnership to drive the developmental agenda.

In his speech Nestle SA Chairman, Mr. Brabeck stated that Nestle has never been shy in making investments in the dairy industry so long as it makes economic sense. Mr. Brubeck encouraged the board and management to ensure reliability and sustainable farmer group partnerships in order for Nestle to grant their request on establishment of the 13 satellite coolers. “We at Nestle believe in creating value and we look forward to a long term sustainable relationship with Kabiyet Dairies Company Limited.” says the Chairman.

The visit culminated with Brabeck and his Executive Vice Chairman being installed as Nandi Elders as they unveiled a partnership plaque.

Unveiling the Partnership Plaque; Abraham Rugut (left) and Peter Brabeck (Right)

Mr. Peter Brabeck Letmathe, Chairman Nestle SA, addresses dairy farmers at Kabiyet Centre

The Chairman later paid a courtesy visit to EADD model farmer Mr. Laban Talam to witness interventions on quality and production by EADD and Nestle. Laban Kipkemboi Talam is a famer, a registered shareholder as well as a milk supplier of Kabiyet Dairies Company Limited. With support of EADD, Laban has seen his milk output grow 10 fold from 3.5 Kilos in 2008 to 30 Kilos of milk daily from his two cows. “Since I received these trainings my milk has never been rejected by Kabiyet Dairies.” Says Laban and adds on saying “EADD assisted me in the construction of a modern milking parlour and feeding my cows with different fodder ingredients planted in my farm; This  has helped improve the quality of my milk.”

In 2008, Laban was one of the youth identified by EADD as a model farmer and trainer. On his two acre farm, Laban was supported by the project in  planting different fodder forages including Caliandra, Mulberry, Desmodium, Lucerne, Sorghum, Nappier grass, Sunflower as well as sweet potato vines. Being also a farmer trainer his farm was a model farm to train other farmers. In total Laban has 500 fodder trees planted on his farm. As a way of conserving his feeds for the dry spell Laban has been trained on feed conservation and feed formulation.

Besides dairy farming, Laban serves as the chairman of Silanga Dairy Management Group and Kabiyet Dairies appointed Farmer Trainer specializing in feed establishment and conservation.

Group photo infront of Kabiyet Financial Services Activities; Kabiyet Board, representatives from Nestle and EADD

Kabiyet is a division measuring about 283.8 square kilometers in Nandi North District of the Rift Valley Province of Kenya.

It has a population of approximately 62,000 people with a total number of dairy farming households of 25, 057. The area has a cow population of about 38, 583 dairy cows (both local and exotic), 99.4% of the farmers practice free range system of grazing. The balance practices both semi and full zero grazing.(0.6%) of the farmers.

Kabiyet Dairies Company Ltd (KDCL) was registered as a Cooperative Society late in late 2008 and was incorporated as a limited liability Company on 30th January 2009. It started milk collections on 1^st June 2009 with a collection of 1,623 liters on day one.

From inception to May 2011, 14,270,823.80 Kilos of milk passed through Kabiyet Dairies Company Limited with the Chilling Plant making sales of Kshs. 499,478,833 of which Kshs. 348,501,046.17 was paid up to dairy farmers.

 

East Africa Dairy: A shared smallholder, business and Government partnership

Yesterday, Moses Nyabila shared the EADD approach at a USAID Bureau for Food Security ‘Agriculture Sector Webinar.’ His presentation highlighted initial results – which include a dramatic increase in milk production, improvements in quality, and increased access to dairy markets through a ‘business hub’ approach.

More on the webinar

Download the presentation

 

Leading by Example; Success Story of a Dairy Farmer and Chairman of Milk Chilling Plant

Patrick Sitonik using his pulverizer to process fodder for his dairy cows

Patrick Sitonik, a farmer  from Chongenwa Village, Konoin District, Bomet County is a happy man. The reason being that he has started enjoying the returns from his dairy project which had been lying dormant for over 30 years.

In 1982, under the assistance of The Kingdom of Netherlands he constructed a big zero grazing unit for eight cows. Within a short period of time cash was flowing as a result of the milk proceeds. However this was short lived. In the mid 1990’s the dairy sector went hay-wire before crushing and sinking with all his investment.

Sitonik and his wife infront of their zero grazing unit

The 1945 born farmer was discouraged and decided to sell the high grade cows only to replace them with indigenous cows for home milk consumption. Sitonik decided to venture into tea growing and established over 5 acres of the beverage producing crop. He also farmed other crops such as maize on small scale, but his passion was always in dairy farming.

In 2008, when EADD started operations in Bomet County and upon being convinced on the viability of the project, Sitonik was motivated into going back to dairy farming. “Last year I purchased two high grade cows at the price of Kshs. 80,000 (USD 952) each. Two months ago the cows calved and I am now supplying 32 kilos of milk every day to Kokiche Dairy Cooling Plant Limited”.

Sitonik, who is the Chairman of Kokiche Dairy Cooling Plant Ltd, is a leader by example as he has already adopted the Artificial Insemination (AI) technology, which is readily available at the milk cooling plant. He hopes to become a high grade breeder supplying heifers for the East African Market.

Sitonik has invested in other farm inputs such as a Pulverizer at Kshs. 60,000 (USD 714) which he uses to process feeds on-farm. He has also built a huge store for preserving feeds for the dry spell. Fodder crops on his farm include maize, Rhodes grass and nappier.

Sitonik infront of his fodder garden

“I am happy because my household income has increased and there is more milk for home consumption. My family is healthier!” says Sitonik who also adds that the proceeds from milk has enabled him access credit facilities to purchase a motor bike.

“The people of Konoin and other parts of Bomet are fortunate to have EADD working with them” says Sitonik because they are now maximizing the benefits of dairy. He says there are very high prospects of reaping the full benefits of dairy due to improvement of cattle breeds now that AI services are easily available at the cooling plant.

As chairman he is very excited because more farmers are responding to the sensitization efforts. The cooling plant now receives about 3,000 kilos of milk every day. “We are expecting an increase in the milk volumes due to improvements in our cattle breeds”.

He is also pleased that farmers have been linked to financial institutions such as Faulu Kenya which is assisting farmers financially to have access to farm inputs towards increased milk production.

More information about Kokiche Dairy Cooling Plant Ltd:

Eadd kenya kokiche dairy company ltd brochure http://www.slideshare.net/slideshow/embed_code/8255837

View more presentations from East Africa Dairy Development

 

East Africa dairy development – baseline survey briefs published

In 2008-2009, we carried out a baseline survey of our sites in sites in Kenya, Rwanda and Uganda. The objective was to assess the baseline situation of dairy farmers and their communities at the start of the project, and to identify key constraints faced by dairy farmers and market agents and opportunities for overcoming them through targeted project interventions.

Five briefs have just been published:

Survey methodology

Feeds and feeding practices

Livestock disease challenges and gaps in delivery of animal health services

Constraints to the use of artificial insemination service and possible solutions

Key economic performance indicator

 

Milk for Health and Wealth; Smallholder Dairy Farmers Benefit from Medical Scheme

Smallholder dairy farmers thronged in numbers to witness the launch of Tanykina Community Healthcare Plan (TCHP) designed for the members of Tanykina Dairy Plant Limited and their dependents. The health care package provides both primary and secondary health care to Tanykina members and their households and it includes amongst others outpatient and inpatient care (minor surgery and maternity care), HIV/AIDS, TB and malaria treatment and treatment against the most common basic chronic diseases.

 

The people of Tanykina have been paying for medical scheme out of their pocket and this situation has been a contributing factor towards poverty in the area. The healthcare systems in the past were unable to efficiently deliver quality healthcare and in most cases the patients would be referred to other health facilities which were a distant away. Pregnant mothers for instance were unable to deliver their children in the facilities and had to be referred to Moi Teaching and Refferral Hospital in Eldoret, some 30 Kms away from Kipkaren Division.

 

The public health facilities had shortcomings ranging from shortage in medical supplies, deteriorating infrastructures and lack of equipment for running important tests such as malaria and upper respiratory diseases.

 

To address these challenges the Health Insurance Fund and its implementing partners PharmAccess and Africa Air Rescue (AAR) provided medical healthcare schemes for low and middle income groups in sub Saharan Africa. The Tanykina Community Healthcare Plan is the first scheme supported by the Health Insurance Fund launched in Kenya. Through the TCHP, health facilities within the Tanykina catchment area have been upgraded to provide quality health care. These new facilities are located at Kaiboi, Kaigat, Chepkemel, Kabiemit and Chepterwai. The TCHP also provides referrals to 2 quality referrals facilities: AAR Clinic in Eldoret and the Moi Teaching & Referral Hospital.

 

AAR’s contribution in this partnership is the extensive service its offering across Africa with systemized clinical history and benefit administration for all members. The well trained workforce has contributed to the steady implementation of the program as well as AAR’s partnerships with various providers i.e. doctors, specialists and hospitals across the country. The short term objectives of the partnership include building local financial, administrative and medical capacity in the public and private healthcare sector among others. In the long term the partnership is to develop a sustainable model fostering increased access to basic healthcare services for currently uninsured people with low and middle income.

 

The launch of the medical scheme was presided by the Ambassador of the Kingdom of the Netherlands, H.E Laetitia van den Assum, assisted by Area Member of Parliament, Heifer International Country Director, Health Insurance Fund representative, Ministry of Public Health and Sanitation,Ministry of Medical services and AAR CEO amongst others.

 

In her speech, H.E the Ambassador emphasised on the importance of the health of dairy farmers and the need for each and every person to take it up as a responsibility. H.E also admired and acknowledged the work done by Tanykina Dairy Plant Limited especially on the role played by the dairy sector in rural household development in Kenya. “And since Netherlands is a great believer of the private sector we plan to pay more attention than before. If you are in the private sector it’s important to ensure that healthcare is a vital component.” Said the Ambassador. In her concluding remarks Her Excellency emphasised the correlation of health facilities and the economy of the people. “Health insurance will ensure that dairy farmers are not reduced to poverty because of the cost of medical care.” She said.

 

Speaking on behalf of Heifer International, Country Director Alex Kirui, stated Heifers role in the dairy industry and its approach in building strong farmer institutions that will ensure farmers enjoy holistic services such as health, education and other social amenities.

 

The Area Member of Parliament, Hon. David Koech noted that dairy farmers were hard working and was evident in the progress so far in the area. Despite the challenges in water, the Dairy Plant has been the driving force behind the developments in the area. Hon. Koech also acknowledged the role played by Heifer International in boosting the division and opening it up for developmental partners from and outside the country.

 

Tanykina is a dairy plant with 4,000 active principal members. It is a relevant income earner for as many as 20,000 people in the area, active members and their families. The health care plan is offered to all the members and their families of the Tanykina Dairy Plant Limited on a voluntary basis. Family enrolment is however compulsory to avoid adverse selection. The members contribution of the TCHP is deducted at the end month from his milk account. With a low cost starting at Kshs. 375 (USD 4.5) for a 1 person family size to a maximum of Kshs. 1,499 (USD 18.06) for a 7 or more family size, the TCHP ensures that as many members can access this unique healthcare plan.

 

Dairy News: Celebrating our Women Dairy Farmers!

Happy International Women’s Day!

The East Africa Dairy Development (EADD) project is delighted to share with you this special edition of DairyNews celebrating our women dairy farmers.

In this issue, we bring you heartwarming personal stories of some of our women farmers participating in economic empowerment through dairy farming and marketing.

We hope you will enjoy reading their stories.

 

Doing More With Less: Kabiyet Dairies Featured in a Special World Report on Feeding the World’s 9 Billion People in the Future

The only reliable way to produce more food is to use better technology

Farmers queue to deliver milk at Kabiyet Dairies. The dairy plant has been lauded as a successful agricultural venture

Kabiyet Dairies, one of EADD’s dairy hubs has been featured in a special world report on feeding the world’s future 9 billion people.

The report by The Economist looks at ways to boost yields of the main crops, considers the constraints of land and water and the use of fertiliser and pesticide, assesses biofuel policies, explains why technology matters so much and examines the impact of recent price rises.

The Economist mentions Kabiyet dairies as one of the agricultural success that is using better technologies to improve the economic status of  farmers while contributing to feeding the world.

The article recognizes that even though the dairy opened only 18 months ago and may seem basic, it has just struck a deal to sell milk to an international processing plant in Nairobi. Farmers get 26 shillings a litre, more than twice what they were paid before the dairy opened its doors. Read more

Read the special report

 

BUBUSI Co-operative in Uganda Installs a Feedmill

The new feed mill at BUBUSI: Farmers will largely benefi t from varying quantities of dairy meals at affordable prices, especially during the dry season. Photo EADD/Brian Kawuma

Bubusi Dairy Cooperative which is a traditional market hub (TM) and Namayumba Integrated Farmers’ Association (NIFA) have formed a joint venture called the Busiro Bulemezi and Singo Farmers’ Association  (BUSIFA) to set up and operate a new feed enterprise.  The venture is jointly facilitated by NAADS (National Agriculture Advisory Services) and EADD.

The feed mill has finally been installed and will be officially commissioned very soon. Already the dairy ration recipes which are based on locally available crop residues have been developed and milling/mixing and sales have already commenced. The products are trading at a competitively priced dairy ration comprising of 17% protein.