Boost for dairy sector Kenya(I)

A bright future for the dairy sector in Kenya..!

Kenya is the land of dairy farmers. Thousands of smallholder farmers are active with only one or two cows. In addition, there are also many larger farmers active. They sometimes own five, ten or even dozens of cows. On vast prairies, the cows graze in complete freedom, with the production of milk being more of a nice side effect than a goal in itself with which one can also earn a decent income. It is precisely in this area that there is still a world to be won!

World to win
Because of this conviction, MissionInvest has been active in Kenya with various project partners since 2020. The goal is to join hands, join forces and make a real difference by applying new concepts. An important breakthrough has been the usage of a ‘game-based learning’ tool from Kucheza to train a cooperative of over 1,200 female farmers. They used tablets and interactive games to gain much better insights into the business economics of their farms. We used those gained insights in a follow-up version of the Kucheza solution, where larger farms could also be trained. This resulted in an intensive collaboration between the RVIST College (Rift Valley Institute of Sience and Technology) in Nakuru and the DTC (Dairy Training Center) in Oenkerk, Friesland. DTC has been providing hands-on training for the dairy industry worldwide for more than 50 years. In the Netherlands, they are known for the so-called Practical Schools where ‘our farmers’ learn the profession. But they are also active in India, Georgia and now Kenya.

I’m graduated in Animal Production at one of the Kenyan colleges. Now, I am a dairy farmer. The pilot training by DTC has provided me a lot of skills and knowledge about dairy cattle management. Now, I’m convinced that my dairy farm can be a viable business, rather than considering it as a hobby. The key differentiator is to improve efficiency in my management activities. I request DTC to make this course a regular occurrence so that more and more farmers may access these skills and knowledge. – Catherine Mbithe, farmer

Nakuru county
As a follow-up to projects in 2020-2023, we would now like to start a follow-up project in the Nakuru region. This region is located 100km northwest of the capital Nairobi. A typical rural area with its challenges: many farmers are aging, there is a scarcity of young entrepreneurial farmers, young people see it as a risky profession due to the effects of climate change, and on top of that there is high youth unemployment in that area causing a migration to the cities. In short, Nakuru is in danger of getting into a downward spiral.

Opportunities
In 2023, DTC conducted some preliminary surveys in the Nakura area. The outcome is very positive. Indeed, there are plenty of opportunities for change and growth! With input from the right expertise, DTC sees very good opportunities to take the dairy sector to the next level. If successful, a lasting impact will be realized for the dairy industry of Kenya, and even East Africa!

Dairy Business School Kenya
DTC is convinced of the solution: Kenya needs a Dairy Business School where young talented dairy farmers and milk processors are given high-quality and, above all, practical training.

The objective is clear: in five years, DTC aims to train 200 young dairy farmers and milk processors. In turn, each participant will mentor a group of small farmers to produce more efficiently and add value by processing milk into dairy products. As a result, all 7,000 members of the farmers’ cooperative will experience a positive impact at the farm level, which will spread over a period of 5-10 years.

What makes our Dairy Business School unique?
Many courses in Africa are highly theoretical in nature; the same applies for Kenya. Therefore, the Dairy Business School wants to put maximum focus on the practical application of what is learned, exactly the same way it has been doing this successfully for years at the practical schools in the Netherlands. The following aspects make the Dairy Business School unique:

• A carefully designed 6-week program, spread over a year, with intensive group training for 5 days a week.
• Participants are prepared with online E-learning sessions, followed by hands-on training at various dairy farms and the demo farm at RVIST college, with which DTC has an intensive working relationship.
• By carrying out practical assignments on their own dairy farms, participants are encouraged to achieve immediate results and apply their knowledge.
• Guidance by experienced educators from local government and the cooperative ensures proper support and implementation of plans.
• Mutual visits to other student companies promote knowledge exchange and competition, which increases motivation.
• Electronic registration of outcomes and progress monitoring for structured participant development.
• At the end of the year, participants present their business improvement and development plan, which forms the basis for their future success.
• We involve the family of the participants and local banks with the goal that they will strengthen each other in seeking the right financing opportunities to realize the business plans made.

Student commitment
DTC focuses on promising and talented students who can actually become leaders in the dairy industry as entrepreneurs. Participating students often have limited resources, but then again they are not entirely destitute. Therefore, we expect them to contribute 1/3 of the tuition themselves. The remainder they can borrow through a study fund and then have to pay back over 5 years. This way we build “commitment” into the program. This is not only important for the student, but it also allows us to make the Dairy Business School financially sustainable in just over 5 years!

Each training place costs € 2.400. Specifically, the above means that a student must pay € 800 himself, and in addition he/she must borrow an amount of € 1.600 from a study fund set up for that purpose. By the way, repayment of the loan only starts in the 2nd year after completion of the Dairy Business School.

The pilot training was good because it helped me on how to identify the opportunities for dairy products in the market and meeting potential customers. The training also improved my financial management skills. I benefited a lot in learning by practically making yoghurt, cultured milk, ice-cream and cheese. The participatory and practical training further gave me a new mindset, that is, to start and manage my own business. – Farid Alwanga, dairy processing enterpreneur

Project Costs
With this project, we aim to establish a study fund in Kenya of €250,000. From this study fund, loans of €1,600 will be provided per trainee. This way, we can train 40 trainees each year. From 2024 to 2028, this amounts to a total of 200 trainees, or 200 young farmers and/or dairy processors. The loans must be repaid within 5 years; the first repayments from trainees are expected as early as 2026! Ideally, DTC will fully fund the study fund through donations, but a low-interest 5-year loan is also a good option for them.

Impact
Since 2020, MissionInvest has been involved in the dairy sector in Kenya. This project is yet another wonderful example of ‘creating ripples of hope’. Hundreds of farming families will experience a significant improvement in their income. As a result, malnutrition will decrease, and new jobs will be created for professionals in the dairy value chain. Young dairy farmers will regain hope, and Nakuru will become a beacon of hope for other regions in East Africa!

Financing
The total project costs amounted to €242,500. Of this, €200,000 was funded through MissionInvest Netherlands (€50,000 in donations and €150,000 through a 5-year loan) and USD 45,000 (or €42,500) through a major donor from MissionInvest USA. The project is fully financed and was launched in 2024!