Tenure of office, meetings and proceedings of the annual council 7. It involves enforcement of the dairy industry act cap 366 licensing of milk handling premises is an important activity in regulation of the dairy industry. Kenyan milk production is 3% of the 18% global production by. Background kenya dairy subsector most developed subsector in agricultural sector 3. Mergers and acquisitions that will shape kenyas economy. The main breeds for dairy production are friesian, guernsey. Government and ngos are engaged in direct provision and facilitating the training and advice service development but about 51. This study investigated the challenges facing erp implementation in the dairy sector.
Valley arcade shopping center po box 41079 00100 nairobi, kenya tel. New proposed regulations seek to tighten dairy sector. Republic of kenya ministry of agriculture, livestock and. Kenyan mergers and acquisitions of 2015 quantum economics. Cost comparison summarises results on costs, returns. Aug 18, 2014 status of the kenyan dairy industry 1. Challenges faced by smallholder dairy farmers in kirinyaga. Interviews with land o lakes, the new kcc ltd and the kenya dairy board dairy processing market opportunity untapped potential for milk processing production of dairy in kenya although local supply of dairy has been increasing, the rise is insufficient to meet demand due to limited. Targeting dairy interventions in kenya semantic scholar. The dairy industry is the single largest agricultural subsector in kenya, larger.
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. History of the dairy dairy industry in kenya dates back to 1900s colonial farmers established large scale dairy farms marketing through common entity restriction of africans to participate in commercial dairying kenya dairy board established in 1958,to organize and promote orderly. In tanzania, it is the tanzania milk processors association tampa, while in ethiopia, the ethiopia producers and processors association eppa. This report is a comprehensive research of dairy and meat industry in kenya. Republic of rwanda rwanda dairy development project detailed design report i contents currency equivalents ii weights and measures ii abbreviations and acronyms iii map of the project area v executive summary vi logical framework xiii i. Kenya s dairy sub sector contributes about 8% of gross domestic product gdp with an annual milk production of 3. She started out with two dairy cows but now has five. In 1958, kenya dairy board kdb was established to enforce regulations, industry standards and quality in milk marketing.
Dairy farming business plan in kenya pdf agri farming. A case study in innovation historical perspective kenya has a long history of dairy farming, and the dairy subsector has always been a priority for policy makers. Kenya has one of the largest dairy herds in africa and there is a high market demand for dairy products at both the national and regional level. Kenya dairy board, or kdb in short, is the main framework of the kenyan dairy industry. Good animal health is vital for maximum production since cattle must be healthy to reach their performance potential. In 2017 the research network grew substantially via new countries in farm and dairy sector analysis.
Kenyas dairy cattle population make up at least 70% of the total in eastern and southern africa, a major factor contributing to the per capita milk availability of about 106 kg in kenya table 1 compared to only 2040 kg milk per capita in most. The smallholder dairy subsector in kenya food and agriculture. Jul 07, 2015 akvo kenya transfers the business of building open source intemet and mobile software to support international development partnerships to akvo kenya foundation. Studies show that two out of three cows are culled from dairy herds for reasons other than low production. Kenya has about 30 active milk processors, brookside, nkcc, githunguri and sameer beeing the largest ones pro cessing together ca. Kenya has one of the largest dairy industries in subsaharan africa with a milk market share of 24% in the region karanja 2003. Dairy industry in kenya operates at both small scale and large scale nyariki, 2009. According to a recent survey by east africa dairy development eadd, there is a surplus of 52 million liters of milk in rwanda, which experts forecast to increase over time. Kenya is the largest milk producing country in south saharan africa, with a herd size larger than the rest of east and southern africa. The magazine reflects the publishers passion for technology and the continent of a.
In uganda, the major groups are the uganda national dairy traders association undata and the uganda dairy processors association udpa. Jun 14, 2016 eldoville dairies is the leader in a multipartner initiative that has become a model for inclusive dairy businesses, not only in kenya but also in ethiopia, mozambique, and uganda. Milk production in kenya is mainly from cattle dairy, grade and zebu or indigenous breeds, camel and goats tables 2, 3 and 4 and annex 2. Status of the kenyan dairy industry presented during esadas breakfast meeting, on th aug 2014, by, machira gichohi, md, kenya dairy board. Cream was the only category with any measurable presence. The erstwhile national monopoly known as the national dairy corporation was privatized in 2006 as part of brookside dairy limited from kenya. Republic of kenya ministry of agriculture, livestock.
Numbers of dairy cooperative societies and membership 2000 to 2006 3 2. Kenya has a vibrant dairy industry with an esti mated value of 4% of gross. After the liberalization of the subsector, the industry witnessed a surge in the number of processors, minidairies and cooperatives involved in milk processing. Total milk production from dairy cows in 2014 was about 3 billion litres. Kenya dairy industry annual awards the african dairy conference and exhibition is the hallmark of the esada activities.
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. The dairy sector in kenya recorded significant growth between 2005 and 2012, as evident from the increases of recorded milk production from 2. The company buys fresh milk from 1,500 smallscale dairy farmers to produce cheese, yogurt, and flavored whey. The dairy products in the kenya market can be grouped into two. The dairy industry mainly focuses on fresh milk or other processed products like yoghurt, butter, powdered milk and. Milk and dairy products, postharvest losses and food safety. 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 cooperatives have adapted to the situation and hedged the price risks by diversifying into multiproduct and multiplant operations, expediting inventory turnover, integrating and diversifying into consumer. 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. 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. Under the colonial government, a comprehensive infrastructure to support dairy farming was built up, primarily in highpotential areas and partic. Kenya mulls quality based milk payment system to boost the sector.
Keywords kenya, mergers and acquisitions, processed milk market. In 1998, the ugandan parliament promulgated the dairy industry act, which created the dairy development authority dda, the new industry regulator. Opportunities and challenges in the indian dairy industry. The dairy sector contributes 14% of kenyas agricultural gdp, and kenya. The dairy industry act, 2004 arrangement of sections section title part i preliminary provisions 1. Kenya has one of the largest dairy industries in subsaharan africa. This article will outline how to start the dairy farming project, and the dairy farming business plan pdf, word and excel. Introduction uganda was considered a pearl of africa by w. Status of the kenyan dairy industry linkedin slideshare. Kenya kenya is set to adopt new regulations that will see dairy farmers receive payment based on the milk quality as opposed to the. The study therefore, intended to investigate factors influencing performance of the dairy industry in meru central district, kenya, through the following objectives. Starting dairy farming business plan pdf startupbiz global. It contributes 14 percent of agricultural gdp and 3.
Industry a parisbased pe fund bought 30% of ramco plexus, a subsidiary of ramco group that has an annual turnover of kshs 5. 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. Currently, the level of milk production is about 5 billion litres against an estimated consumption of 7. Wachira and memba 2015 studied the brookside dairy mergers and. Gender roles in a dairy value chain in uasin gishu county. Mergers and acquisitions that will shape kenya s economy in 2019 by rahab mbiriti february 14, 2019 11. Market study on artificial insemination and vaccine. Dairy industry 3 issue 1 chapter 336 dairy industry act arrangement of sections part i preliminary section 1. Milk safety related legislatyion and standards 36 7. The smallholder dairy farmers in kenya dominates the industry at the production level and they account for 7580% of the milk produced 3. The target population of the study was the senior staff in the leading milk processors in kenya. Research and markets has announced the addition of the kenya dairy products market outlook to 2020 new product launches in kenya to dairy product market.
Kenya mauritiusbased private equity firm adenia partners has concluded a deal to acquire majority stake at the emerging retailer quickmart supermarket through its special purpose vehicle sokoni retail kenya at an undisclosed amount. Milk production is however not sufficient to meet this ever growing demand and for that reason development of the dairy industry in the region has enormous potential. The industry has grown tremendously since its liberalization in 1992. By the end of 2007, there were 52 licensed processors with an inbuilt capacity of 2. In africa, kenya is ranked as one of the largest dairy producer 1. Republic of kenya ministry of agriculture, livestock and fisheries state department of livestock sessional paper no. The dairy processing industry in kenya, which commands about 15% of marketed milk, has been quite dynamic.
Pdf dairy value chain analysis for the kenya crops and dairy market system development report is a baseline report for the usaid funded. Objective to apprise the board of directors re dairy industry dairy farming report3 4. 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 cash cow of africa dairy 5 months ago 5 min read on a recent visit to rwanda, i made a visit to a few grocery stores and found the milk section lacking, except in nakumatt, which situates itself within the market as a high end grocery store chain. The dairy board is managed by a chairman and a board of chairman which is appointed by agriculture ministry. Challenges faced in the dairy farming sector in kenya. Other dairy, including cream, generally remained aspirational products in kenya in 2019, with most having a negligible presence. The dairy industry is the single largest agricultural subsector in kenya, larger even than tea muriuki et al. The dairy industry is kenya s single largest agricultural sub sector. Kenyas strength in dairy arise from its possession of a dairy herd of over 3 million dairy cattle, which is over 85 percent of the dairy cattle population in eastern africa table 8 and over 70 percent of dairy cattle in eastern and southern africa thorpe et al, 2000 b.
Since each dairy operation is unique, each owner should work with. Dairy farming is a lucrative business, providing income for millions of people, but there are some essential things you need to do before you venture into the dairy milk production business. Kenyas quickmart supermarket merges with tumaini self service. The transaction will see sokoni merge the operations of quickmart and tumaini. Sokoni retail kenya holds the controlling stake in tumaini self service. Kenyan dairy sector conducted in the inception phase of the 3r project.
Effects of mergers on processed milk market in kenya request pdf. Regulation is the core mandate of kenya dairy board. Grade cattle are about 50 percent pure breeds mainly friesian, followed by ayrshire, jersey and guernsey and crosses. Factors influencing performance of the dairy industry in. The dairy industry accounts for 4% of the countrys gdp. Interpretation part ii establishment of the annual council 4. The dairy sector analysis covered over 200 countries. Challenges in milk processing and marketing among dairies in. Dairy industry is one of the food industries that make a big contribution to the income of kenyan farmers as well as food for kenyans. Dairy farming in kenya is among the most respected professions and its a major booster in the economy. Market concentration in the dairy processing industry in. However, the dairy industry and the plant design has to meet certain special requirements and need to be focused on these. Dairy farming in k enya is among the most respected professions and its a major booster in the economy. Supporting the development of the kenyan dairy industry for.
Handbook of good dairy husbandry practices national dairy development board national dairy development board anand 388 001 gujarat phone. Country and rural development context 1 the dairy sector 3. The dairy value chain is complex, with a diversity of actors and a proliferation of inputs, services and dairy products. The recent growth in the dairy production has been driven by increases in the. Analysis of social benefits of smallholder dairy production, including income. By combining the research capacity of kari and ilri with the experience and.
The board was established under the industry dairy act cap 336 of the jurisdiction of kenya. Other dairy sales remained very low in kenya in 2019 due to a lack of any tradition for such products. Kenyas dairy sub sector contributes about 8% of gross domestic product gdp with an annual milk production of 3. Other dairy largely seen as an aspirational category. However, uganda recorded a threefold increase in milk production from 1991 to 2004. The government of uganda, which owns 49% of sameer confirmed this on march 25. Milk and dairy products, postharvest losses and food. Food business africa magazine is the source of information for the professionals and businesses in the food, beverage, milling, baking, animal feed manufacturing and foodservice sector in subsaharan africa. Productivity trends and performance of dairy farming in kenya. Note this export permit is subject to the regulations prescribed under the dairy industry importexports regulations, 2004. Recent developments in the dairy sector in eastern africa. Population of milk animals and percentage contributions to annual milk production 2007.
Kenya dairy products market outlook to 2020 research and. The issue of dairy in africa involves a plethora of factors that cannot be completely synthesized into one story line. Request pdf effects of mergers on processed milk market in kenya purpose the purpose of this paper is to determine the effects of the. The east african country of uganda might not be thought of as the location of a viable, growing dairy industry. Evolving opportunities for the tanzanian dairy industry. The event held annually is an opportunity for players within and outside the dairy sector to showcase their products to consumers and other decision makers, create new markets, orient the consumers to their new innovative. In the farm comparison,159 typical dairy farms from 62 dairy regions and 52 countries were analysed. Effects of mergers on processed milk market in kenya. Dairy products are a major source of cheap and nutritious food to millions of people in india the country is the worlds largest milk producer, accounting for more than % of the worlds total milk production. A guide for development planners, researchers and extension workers. Farmers who have indulged in it have a successful story to share and more so, their pockets are fuller with dairy farming profits. In general, farmers owns two to five herds of dairy cattle which are reared on 3. Very few dairy farmers can boast of getting 90 litres of milk per day from five cows. The dairy industry licensing regulations 2018, among the 12 set of rules published by kdb, provide that a person shall not sell, offer for sale or expose for consumption, any milk in raw form.
National dairy development board handbook of good dairy. Dairy africa african dairy conference and exhibition. The robustness of the dairy sector is approached from the perspective of sustainability, with a particular focus on economic, social and environmental sustainability. The policy interventions clearly spell out the role of each level of government while. However, the government is making an effort to support the dairy industry and help farmers to overcome some of the structural barriers. These represent the main hurdles facing the dairy industry in tanzania. As table 1 shows, kenya dominates dairy production and marketing in eastern africa to the extent that it has over 85% of the dairy cattle population in the region and because the dairy cattle populations in southern african countries are small, kenya has over 70% of the population in eastern and southern africa.