Status of the kenyan dairy industry presented during esadas breakfast meeting, on th aug 2014, by, machira gichohi, md, kenya dairy board. Dairy development in kenya edf european dairy farmers. Dairying is one of the most important livestock investments owing to its inherent value and potential incomes, nutrition. The sector is dynamic with high growth figures of marketed milk and investments by dairy societies and. Annual per capital consumption of milk and dairy products in kenya, currently 110 litres of liquid milk equivalent, is projected to double to 220 litres by 2030 17 quality milk for health and wealth. Dairy data, a dataset that includes files covering domestic supply and demand and trade of various dairy products. Ilri international livestock research institute, nairobi, kenya.
They are also fed calf starter, a grain, beginning at 7 to 10 days of age. Productivity trends and performance of dairy farming in kenya. Kenya kenya is set to adopt new regulations that will see dairy farmers receive payment based on the milk quality as opposed to the payment based in weight, reports business daily. As in subsaharan africa ssa in general, cow milk production is predominant in eastern africa, followed by goat milk, sheep milk and camel milk. Interestingly, it is the buyer to determine the quality in fashion that is likely to be abused to exploit the farmer to the vagaries of poverty. A vibrant dairy subsector is important for the economic development of ethiopia. Milk buyers that o er di erent frequencies of payments coexist in the market. Farm journals milk business dairy farming industry and. In this paper, we focus on the dairy industry in central kenyathe largest agricultural subsector in the country and in many other developing countries. The overall perception of the evaluation participants was the research conducted and published by elsenburg. Mathenge the dairy processing industry in kenya has been quite dynamic characterized by acquisitions, change in market leaders and new entrants. Nddb recognises that dairy farmers need to be equipped to take care of their animals through better management, nutrition, feed, fodder and preventive healthcare.
The findings show that one of the major challenges facing mergers and acquisitions in the dairy industry in kenya is integrating organizational cultures and values. The mission of farm journals milk is to connect with largedairy producersthose with 500 or more cowsand provide them with the information and resources they need to run their operation and continue to expand opportunistically. The dairy value chain is complex, with a diversity of actors and a proliferation of inputs, services and dairy products. Recommendations for future engagement in the kenyan dairy sector. Kenya dairy board, in association with esada, are celebrating innovation and excellence across various categories of the dairy industry value chain. Discover the latest market trends and uncover sources of future market growth for the dairy industry in kenya with research from euromonitors team of incountry analysts. Status of the kenyan dairy industry presented during esadas breakfast meeting, on th aug. Aug 18, 2014 status of the kenyan dairy industry 1. From these numbers, you can see that dairy farming in kenya is an industry that has the potential to improve livelihoods further if well managed. Kenyas dairy industry is largely based on smallholder production, which accounts.
The country was brought to its knees, as kenyans were left struggling to. Starting dairy farming business plan pdf startupbiz global. The story of kenyas dairy industry is as old the country. In this paper, we focus on the dairy industry in central kenya the largest agricultural subsector in the country and in many other developing countries. Total milk production from dairy cows in 2014 was about 3 billion litres. Identify the seven major breeds of dairy cattle utilized in milk production in the united.
Pdf on jan 1, 2016, oloo benard o and others published lessonsi sustainable dairy farming to kenyan dairy sector from the dutch dairy sector find, read. Dairy cow operations are found throughout the state. Dairy cows and all other ruminants have the capacity to convert roughages and other by products from the human food industry, otherwise useless waste products, into valuable products like milk and. The economic impact of animal health issues is well known. Recent developments in the dairy sector in eastern africa. Kenyas livestock and poultry production sector is dominated by dairy, beef, and dualpurpose cattle. There are over thirty registered dairy farming in kenya processors in the country, but four large processors dominate the industry. The kenya dairy sector competitiveness program kdscp is a program funded by the u. Dairy africa is a one stop dairy value chain consulting house and the sole distributor and service provider of dairymaster, keenan, moocall and grass technology in kenya, uganda, tanzania, rwanda and ethiopa. The first two chapters of the report feature the country profile by giving general information on kenya and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. This statistic shows the milk production in kenya from 2001 to 2017.
Kenya feed the future crops and dairy market systems development activity aps number. Kenyas dairy industry is dynamic and plays an important economic and nutrition role in the lives of many people ranging from farmers. The second research question focused on examining challenges affecting mergers and acquisitions in the dairy industry in kenya. Due to this rapid growth, demand is outstripping supply in kenya according to the kenya dairy board, which is.
Introduction kenya has one of the most successful dairy industries in subsaharan africa based on some 3 million cattle of mostly high grade bos taurus dairy breeds and a relatively advanced milk marketing infrastructure. Dairy unit over the past five years has not been relevant, practical or useable. Initiative for impact evaluation 3ie, the smallholder dairy commercialization. Over 80% of all milk reaching the market is distributed through informal channels. See the latest dairy products, including milk, cheese, yogurt, other cultured dairy foods, ice cream and more. And that the dairy industry accounts for 14 % of the total agricultural revenue collected nationally. It is the largest agricultural subsector and contributes 4% to gdp kdb, moalf 2012. Discussion and conclusions 25 references 26 annexes 1. Kenya s dairy industry is dynamic and plays an important economic and nutrition role in the lives of many people ranging from farmers to milk hawkers, processors, and consumers. Kenya dairy sector competitiveness program sourcewatch. Kenya feed the future crops and dairy market systems.
The dairy sector in kenya is one of the largest and most developed in subsaharan. Lorenzo casaburi rocco macchiavello stanford university warwick university january 9, 2016 click here. Remember that time dairy farmers went on strike and a nationwide shortage of milk followed. Note this export permit is subject to the regulations prescribed under the dairy industry importexports regulations, 2004. Kenya mulls quality based milk payment system to boost the sector. The dairy sector contributes 14% of kenyas agricultural gdp, and kenya boasts the. The dairy sector contributes 14% of kenyas agricultural gdp, and kenya boasts the highest per capita milk consumption in subsaharan africa, with demand projected to rise. The robustness of the dairy sector is approached from the perspective of sustainability, with a particular focus on.
A newborn calf is fed colostrum milk for the first three days of life. Files are delivered directly into your account within a few minutes of purchase. The dairy sector in kenya is one of the largest and most developed in sub saharan. Jan 04, 2014 the formal dairy farming in kenya industry is now the fastest growing agricultural subsector in kenya. The usaid kenya dairy sector competitiveness program kdscp is 5year effort to improve kenyas dairy industry competitiveness, implemented by land olakes, inc. Kenya has about 30 active milk processors, brookside, nkcc, githunguri and sameer beeing the largest ones pro cessing together ca. The board was established under the industry dairy act cap 336 of the jurisdiction of kenya. This paper documents how saving constraints can spill over into other markets. The main breeds for dairy production are friesian, guernsey. Agency for international development and implemented by land olakes, inc. Kenyas dairy sector contributes about 14% of agricultural gdp and 3. Recent developments in the dairy sector in eastern africa towards a regional policy framework for value chain development susan bingi and fabien tondel key messages in eastern africa, the dairy sector is crucial for rural development, poverty reduction and food and nutrition security.
Dairy industry background n kenya the study found out that the dairy industry plays an important role in the lives of people in central kenya region and over 600,000 smallholder farmers derive their income from the sector. How the training on bio intensive farming went down. For an industry that provides employment, food, and income to as many as 1. The story of kenyas dairy industry is as old the country itself. Smallholder dairy project the smallholder dairy project sdp carried out research and development activities to support sustainable improvements to the livelihoods of poor kenyans through their participation in the dairy subsector. Processing and marketing of milk are important levels of dairy development and growth of the industry.
Milk safety related legislatyion and standards 36 7. Besides its intrinsic interest dairy is the largest agricultural subsector in kenya and many other developing countries, the setting is particularly suitable to test the proposed mechanism. They set up a format for the rotational farm visits see boxes. First exotic dairy cattle were imported into the country in 1900. This report is a comprehensive research of dairy and meat industry in kenya. The dairy board is managed by a chairman and a board of chairman which is appointed by agriculture ministry. With an estimated 5 billion litres of milk produced. Pdf lessonsi sustainable dairy farming to kenyan dairy sector. However, commercial dairy farming in ethiopia is expanding due to income increase, rapid urbanization and changing dietary habits.
Indian dairy industry driven by valueadded products. Market concentration in the dairy processing industry in kenya and producer milk prices simon c. This study examined trends in milk productivity and performance of the kenyan smallholder dairy sector using a nationwide representative panel household data. National dairy development board handbook of good dairy. Mediamax most places in nairobi city tend to be bustling, warm and dusty at this time of the. Today most of kenyas 3 million dairy cattle are kept in smallholder agriculture areas. Usaid support for the commercialization of the dairy industry over the next five years 2011 2016 can increase.
Kenya has one of the largest dairy industries in subsaharan africa with a milk market share of 24% in the region karanja 2003. Stella wambugu, lilian kirimi and joseph opiyo introduction. Additionally, the dairy industry in kenya accounts for around 58 % of the total gdp. Apples and pears industry awaits release of reefer containers from china.
It is the most valuable agricultural subsector in kenya, with a gdp contribution of about four percent 4%. The role of research in propoor dairy policy shift in kenya c. Impact evaluation of the smallholder dairy commercialization. Kmdp works across the kenyan dairy sector, with smallholders, medium and large scale dairy farmers, with dairy cooperatives who collect and market raw milk. Dairy unit over the past five years to get alignment between its research and farmers needs.
The dairy industry pricing of dairy produce regulations will determine the price of milk from the farmer. The country was brought to its knees, as kenyans were left struggling to other alternative sources. Kenya is the largest milk producing country in south saharan africa, with a herd size larger than the rest of east and southern africa. Things you need to know before starting your own dairy farm business plan overview. The business plan package is a zipped compressed file containing the pdf, word and excel documents. Seven major dairy breeds supply most of the milk across the nation. Milk and dairy products as part of the diet 103 abstract 103 4. Informal traders lock horns with the formal milk industry. This handbook by national dairy development board nddb reiterates its commitment to the dairy farmers of india. New proposed regulations seek to tighten dairy sector. How to start dairy farming in kenya 2020 a profitable. Kenya milk demand is growing at a rate of 7 percent. Kenyas dairy industry is dynamic and plays an important economic and nutrition role in the lives of many people ranging from farmers to milk hawkers, processors, and consumers. The kenyan dairy sector kenyas dairy industry is private sector driven.
Transforming the kenyan dairy feeds system to improve farmer. The price will be based on quality as opposed to quantity. Beef and milk account for more than 75% of the marketed livestock production. Kenya dairy board, or kdb in short, is the main framework of the kenyan dairy industry. Yogurt, cottage cheese, sour cream, dips and other cultured dairy foods. After independence in 1963, many foreign settlers who opted to leave the country sold. Evaluation of the kenya marketled dairy programme ii kmdp. The study focuses primarily on the dairy industry in kiambu county in central kenya.
Lets explore the similarities and differences of these breeds and the ways they affect the dairy cattle industry. To open the package after downloading it, just right click, and select extract all. Many missouri producers derive their entire income from the dairy industry. The effect of mergers and acquisitions on the dairy industry. As the first ever awards scheme in the industry, these awards are a fantastic way for you to enhance the promotion of your brand and global recognition. India, in its quest to become a matured dairy industry, is aggressively transitioning from just plain vanilla loose pouch milk to valueadded products vap market and from. Introduction to the dairy industry t he dairy industry is an important component of missouris animal agriculture industry. Dairy offers a pathway out of poverty for a large number of households keeping livestock. Evidence from the kenyan dairy industry lorenzo casaburi stanford university rocco macchiavello. Dairy production is a major segment of the livestock sector and a significant source of livelihood for about 625,000 smallholder farmers and 800,000 households. The dairy board is managed by a chairman and a board of chairman which. Market concentration in the dairy processing industry in. It contributes 14 percent of agricultural gdp and 3.
Kenyas dairy sub sector contributes about 8% of gross domestic product gdp with an annual milk production of 3. The dairy industry is the single largest agricultural subsector in kenya, larger even than tea muriuki et al. Dairy farming in kenya has so much impact in the society as well as the countrys economy. Furthermore, milk consumption by kenyans is growing at 2 to 3% per year. In kenya, annual per capita milk consumption estimates vary between 80 and 100 l, which is the highest in africa. Challenges faced in the dairy farming sector in kenya. The project consists of four components see annex a project results framework that address critical needs throughout the dairy supply chain and in the wider enabling environment. The dairy industry accounts for 4% of the countrys gdp. Fundamentals of marketing and dairy business management. Hence, the dairy enterprise became an integral part of a farming system having cash crops, and subsistence maize and beans, supported by offfarm income from towns through the extended family network. The dairy sector accounts for 14 per cent of agricultural gdp and 3. Calves are usually fed milk or milk replacer starting at 3 days of age.
A guide for development planners, researchers and extension workers. The politics of policy reforms in kenyas dairy sector. With fully fledged operations in kenya, tanzania and uganda. The dairy industry has seen a number of scandals in recent times, and firms must take measures to ensure that their supply challenges and opportunities while the dairy sector is currently dealing with a number of challenges, favourable long term consumer trends and developing technologies provide a number of opportunities. Dairy industry policies are contained in various government documents, which include written policies, legislation, development plans, sessional papers, legal. The indian dairy industry is at the cusp of another revolution, moving towards increased contribution from various milk products. Challenges in milk processing and marketing among dairies in. Numbers of dairy cooperative societies and membership 2000 to 2006 3. The industry has grown tremendously since its liberalization in 1992. Production cycle of a cow dairy farming report birth the calf is usually removed from her dam after only a few hours after birth.
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