Smallholder Dairy Value Chain Interventions; The Kenya Market-led Dairy Programme (KMDP) – Status Report

Abstract

The Kenya Market-led Dairy Programme (KMDP) is a 4.5-year programme funded by the Embassy of the Kingdom of the Netherlands and implemented by SNV Netherlands Development Organisation in collaboration with stakeholders in the dairy industry. The overall goal of KMDP is to contribute to the development of a vibrant and competitive private sector-driven dairy sector in Kenya, with beneficiaries across the value chain. KMDP has two pillars, or strategic intervention levels. The first pillar is the smallholder dairy value chain, which has the objective to increase efficiency, effectiveness and inclusiveness in this production and marketing channel. The second pillar concerns systemic issues in the sector, where the objective is to promote and support interventions and innovations in feed and fodder supply, milk quality, practical skills development and the policy or regulatory environment. Work in the second pillar partly supports work in the first pillar and partly addresses issues in the enabling environment and supporting systems. In the smallholder dairy value chain, KMDP has engaged with eighteen farmer-owned milk collection and bulking enterprises (CBEs), dispersed over three main milksheds in Kenya: North Rift region, Central region, and Eastern region (Meru). In addition, KMDP works with two processors that receive and process milk from a number of the eighteen supported CBEs. This report describes the work of KMDP in the smallholder dairy value chain. It looks at the response of CBEs, processors and farmers to KMDP’s interventions, which cover five themes: 1. Capacity building of CBEs in governance and financial management; 2. Training and extension activities for farmers; 3. Fodder development and preservation at CBE- and farmer level; 4. Business development through linkages with input suppliers and service providers; 5. Milk procurement and milk quality along the value chain