Accelerated Value Chain Development
(AVCD)
Dairy Component
James Rao, ILRI
AVCD End of Project Conference, ILRI, Nairobi, 26–27 April 2018

PROJECT GOALS AND
OBJECTIVES
GOAL
improving diet diversity, food
security and rural incomes for 38,000 smallholder
OBJECTIVES
i. Increased milk productivity and production among 38,000
smallholder dairy households
ii. Enhanced market access via linkage of 20,000 smallholder dairy
households to diverse milk markets
iii. Improved access to diverse and quality food and change in
nutrition-related behavior among 30,000 households

• Project implemented in 9 counties
• Six counties in Western/Nyanza regions
• Migori, Homa Bay, Kisumu, Busia, Vihiga &
Siaya
• Three (3) counties in Lower Eastern regions
• Kitui, Makueni & Taita Taveta
• Through consultative engagement with
county governments
• Thirty five (35) sub-counties were selected
for project implementation
• This covers 108 wards
• Sites considered non-traditional dairy
areas
• Limited dairy farming & low milk production
• Implementing partners include:
• County governments
• TechnoServe
• Heifer Project Kenya
• Farm Inputs Promotions (FIPS) – Africa
PROJECT SITES &
IMPLEMENTATION

2. Higher prevalence of ECF among
other diseases discouraging adoption
of improved breeds
Suitable
vector
conditio
n
Few
service
provide
rs
High
mortality
of
improved
cows
High ECF
prevalenc
e
High
treatment
cost
Few
improved
cows
Higher cost
of
production
Few input &
service
providers
Low
productiv
ity
Low
milk
supply
Less
marketab
le
surplus
Less
returns
from
dairy
enterpris
e
Less
investme
nt in
dairy
1. Vicious cycle of low
adoption and high cost of
production
3. Vicious cycle of low
productivity and low
investment in dairy
COUNTY DEFINING CHARACTERISTICS

COUNTY DEFINING CHARACTERISTICS
Nutritional status of children under 5
years of age
Burden of malnutrition in project
counties
• Malnutrition is a public health
concern in the counties of
operation
• Diets of children and women are
not diverse and predominantly
starch-based
• Animal source foods are nutrient
dense but not optimally consumed
by women and children

WHAT HAVE WE DONE?

More
improved
cows
Low cost of
production
Input &
service
providers
crowded in
1. Vicious cycle of high
adoption and low cost of
production
REVERSE THE VICIOUS CYCLES
Accelerated breeding based on
hormone synchronizations (FTAI)
• Refresher training to existing AI
service providers on FTAI
• Subsidized service – AVCD
availing hormones; county
government supplying semen
• Trained new AI service providers
in areas with low density
• Partnered with county
governments to equip newly
trained AI service providers
• Introduced bull schemes in
carefully selected areas with
almost no reach of AI
Accelerated
breeding

2. Less incidences of ECF; saving
costs; less disease burden; improved
productivity
REVERSE THE VICIOUS CYCLES
Securing breeding gains via
ECF vaccine
• Introduced ECF vaccine via a
20% subsidy
• Trained ECF vaccinators
• Provided incentives to
vaccinators via a seed vaccine
• More vaccine suppliers now
crowding in to cash in on
growing demand
• Some county governments
investing in further subsidy
Introduce
ECF
vaccine
Trained
local
vaccinato
rs
Low
mortality &
reduced
disease
burden
Local vaccine
supply
More
vaccinato
rs

3. Vicious cycle of high
productivity and more investment
in dairy enterprise
REVERSE THE VICIOUS CYCLES
Enhancing capacity for
improved productivity
• Introduced more nutritious &
high yielding fodder varieties
• Grassroots extension
services via village volunteer
livestock extension workers
(VBDAs/PFTs/Agro-dealer
agents)
• VBDAs/PFTs/agents
backstopped by technical
county and agro-dealer staff
• Agro-dealer innovations and
linkages to enhance input
access
High
productivit
y
More
milk
supply
Market
-able
surplus
Higher
returns
More
investm
ent in
dairy
Improv
ed
fodder
varietie
s
Improve
d farmer
capacity
More
househol
d
consumpt
ion
Agro-
dealer
innovati
ons

FORMALIZING THE INFORMAL MILK SECTOR
Market system facilitation for
enhance business efficiency
• Support milk aggregators to
enhance their governance and
financial management
• Support aggregators to develop and
implement strategic and business
plans
• Supporting milk traders to achieve
compliance
– Linkages with equipment suppliers
to aid acquisition of pasteurizer
• Re-brand their shops and adopt
hygienic milk handling practices

• Agri-Nutrition trainings
cascaded from the County
level to the community
• Sensitizing DVC actors on
agri-nutrition and importance
of increased household milk
consumption via a 3-tier ToT
approach
County/Sub
County Officers
MOA/MOH
Lead Farmers
Value Chain Actors Sensitized
Community Health
Extension Workers
Community Health
Volunteers
Mother support group
NUTRITION EDUCATION

WHAT HAVE WE ACHIEVED?

ADOPTION & IMPACTS OF IMPROVED FODDER
-
5,000
10,000
15,000
20,000
25,000
30,000
-
500
1,000
1,500
2,000
2,500
Migori
Homabay
Siaya
TaitaTaveta
Kisumu
Vihiga
Makueni
Busia
Kitui
TOTAL
Uptake of improved fodder
No. of Households
• More than 28,000 households reached;
more 2,500 acres of land under
improved fodder

I used to get 2 liters in the
morning and 3 liters in the
evening before I introduced
brachiaria to my cows’
menu. Today I get 5 liters in
the morning and 3 liters in
the evening, by blending
brachiaria in my cow’s
fodder mix.
Brachiaria has survived
where our local fodder did
not make it through the dry
season …….. Many farmers
are all creating space for
planting materials to plant
when the rains come back.
VBDA Stephen Nyamisi harvesting
brachiaria (basilisk variety) from his
quarter acre plot during February 2017 to
feed his cow.
ADOPTION & IMPACTS OF IMPROVED FODDER - PRODUCTIVITY

ADOPTION & IMPACTS OF IMPROVED FODDER - INCLUSION
Opportunity for smallholder
inclusion
• Poor farmers with limited
land:
• From subsistence to high-
value fodder
commercialization
• Mr. Gembe plans to expand
area and invest in more dairy
cows
I sold the 1st harvest from
these 6 lines and paid
school fee for my son. I
am now expanding the
area and I plan to buy 2
dairy cows from y next
harvest. We cannot even
meet the demand

Starting
with 9
youths
32 youths
in the
phase II
60
youths to
be
supporte
d in total
ADOPTION & IMPACTS OF IMPROVED FODDER - INCLUSION
Opportunity for Inclusion
• Youth as direct
producers:
• AVCD con-investing
with youth
• Women as direct
producers
• Women groups
allocating land to
fodder production
• Aggregating and
marketing
• Further Opportunities
• Equipment services by
youth
• Commercial
aggregators

ADOPTION & IMPACTS OF IMPROVED FODDER – STEPPING UP
Smallholder with
¼ of an acre
allocated to
fodder
Expands to 1
acre of fodder
plot: 4
crops/year =
200*4=800
bales=$2,000
@ $700 this is
equivalent to 2
dairy cows
Pathway to stepping up

ACCELERATED BREEDING – FOUNDATION FOR A BRIGHTER
FUTURE
0
2000
4000
6000
8000
10000
Accelerated breeding - FTAI
No. of Animals No. of Households
• Many poor farmers with only local
cows can upgrade and become future
dairy farmers
• Even farmers without cows can rent
wombs from their neighbors
• Service providers are creating new
clients – expanding their businesses

ECF VACCINATION – SECURING THE BREEDING GAINS
• Reduced disease burden leading to
productivity improvement
• Low incidence of ECF, low mortality
encouraging adoption of improved
cows
• Expanded business opportunities for
service providers bundling services – AI
& vaccination
0
2000
4000
6000
8000
ECF Vaccination
No. of Animals No. of Households

IMPACTS OF VOLUNTEER EXTENSION APPROACH
This is the very cow
that used to produce
as low as 5 litres a
day. Today I milk up
to 13 litres a day
The secret lies in proper
feeding …..and husbandry
practices such as
deworming, tick control
and proper housing,” “I
learnt this when I was
trained as a Village-Based
Dairy Advisor (VBDA), and
now I have seen it
practically!

IMPROVED ACCESS TO INPUTS & DAIRY SERVICE
• Agent network models (ANM):
– Bulk orders/lower transaction
cost
– Cost saving for farmers –
transport & time
• Increased demand from farmers
hence improved agro-dealer
business
Agro-
dealer
Agen
t
Agen
t
Individu
al
farmers
Farm
er
group
• Improving performance of
business selling to smallholders
due to shop remodeling to
enhance customer interaction

IMPROVED BUSINESS FOR COOPS/POS
-
10,000
20,000
30,000
40,000
50,000
-
500
1,000
1,500
Improvement in COOP milk intake
Membership Before
Membership After

IMPROVED BUSINESS FOR COOPS/POS
-
10,000
20,000
30,000
-
500
1,000
1,500
Rongo Kasbondo Sam
Malanga
Butula Seke
Improvment in value of sale
Membership Before
Membership After

 2,468 MoH and MoA
staff trained on the
applied agri-nutrition
 6,530 children under
2-years reached with
messages on agri-
nutrition
 Increase % in women
who consumed 5 or
more food groups per
day from 46.8% to
53.1%
 Hence improved diet
quality and nutrition
outcomes
IMPROVED NUTRITION OUTPUTS &
OUTCOMES

WHAT HAVE WE LEARNT?

MULTIPLE BUSINESS OPPORTUNITIES IN FODDER VC
FODDER
VALUE CHAIN
A WATERSHED
OF
AGRIBUSINESS
SALE OF PLANTING
MATERIAL
PRODUCTION AND SALE OF
HAY
EQUIPMENT SERVICE
BUSINESS COMMERCIAL AGGREGATION OF
HAY

FODDER PRODUCTION – AN AVENUE FOR SOCIAL INCLUSION
1. Smallholder inclusion
with opportunity for
stepping up
2. Youth inclusion at
various nodes of fodder
VC
3. Women inclusion –
production, aggregation and
sale

INCLUSIVE COORDINATED BREEDING PROGRAM – PATHWAY TO
SUCCESS
 Breeding is the foundation of
dairy in precommercial dairy
areas
 While breeding is privatized,
county government should
play a strong convening,
coordination and oversight
role
 Collaboration among county
governments, private sector
and research institution
necessary for successful
breeding programs
 An all inclusive platform
should help coordinate such
programs

ADDRESSING MALNUTRITION VIA MULTI-SECTOR APPROACH
 Fathers and grandmothers are key
influences of maternal, infant and
young child feeding and should be
targeted for behavior change
communication messages
 Cost of Diet – a useful tool in the
design of feasible and sustainable
diets for communities
 Nutrition sensitive programming
through a multi-sector approach
has great potential in addressing
malnutrition.
 Ministry of Agriculture and
Health have collaborated in the
implementation of the AVCD
program

COORDINATED DEVELOPMENT INVESTMENT – INNOVATION
PLATFORMS
County sector coordination
mechanism
 Inclusive innovation
platforms (IP) convened
and driven by non-state
actors with state
participation
 Forums engage and co-
create pathways for value
chain development
 All development partners
converge and identify
complementarities
 Avoiding duplication of
efforts and waste of
development resources

STRUCTURED FEED INTERVENTION GUIDED BY THE FEAST
FEAST approach enhances
ownership and technology
fit
 Systematic method to
assess local feed resources
and use
 Designs interventions that
optimize feed utilization
and animal production
 Develops interventions that
are site specific
 Aid ownership since it
involves all stakeholders
from extension staff to
farmers
FEASTTechfitAction
What can we do about feed?
Is feed the
main
issue?
Context scores:
Land, Labour, cash,
knowledge, inputs
What is
priority
commodity?
Farming
system
Main constraints:
seasonality,
biomass, quality?
What is
the feed
issue?
Short list of interventions
Adoptability PRA Cost benefit analysis
ACTION RESEARCH
Info for Techfit filters

SUSTAINING AVCD GAINS
OPPORTUNITIES AND CHALLENGES

TAKING FODDER INNOVATIONS TO SCALE VIA BUSINESSES
FODDER
VALUE CHAIN
A WATERSHED
OF
AGRIBUSINESS
SALE OF PLANTING
MATERIAL
PRODUCTION AND SALE OF
HAY
EQUIPMENT SERVICE
BUSINESS COMMERCIAL AGGREGATION OF
HAY

INCLUSIVE COORDINATED BREEDING PROGRAM – PATHWAY TO
SUCCESS
 Enhanced mechanization
especially via business
models for equipment
services
 Structured business
engagements that build
confidence for increased
investment
 Contracts between
producers and aggregators
 Cross-value chain
engagements for
strengthened businesses
(FVC-LVC)
 Strategic feed reserves
especially for fodder-deficit
counties in the North

IMPACTS OF VOLUNTEER EXTENSION APPROACH
This is the very cow
that used to produce
as low as 5 litres a
day. Today I milk up
to 13 litres a day
The secret lies in proper
feeding …..and husbandry
practices such as
deworming, tick control
and proper housing,” “I
learnt this when I was
trained as a Village-Based
Dairy Advisor (VBDA), and
now I have seen it
practically!

SUSTAINING VBDA/PFT EXTENSION MODEL VIA COOP/PO
No. of
farmers Area
Yiel
d
Pric
e TOTAL
Purchase
100 0.25 250 250 1,562,500
Sales
300 1,875,000
NET PROFIT 312,500
No. of farmers 100
Area per farmer 0.25
No. seedlings/acre 27000
Price per seedling (KES) 0.5
TOTAL REVENUE (KES) 337,500
VBDA/PF
T
Clusters of
COOP
members
Embed
incentives for
VBDAs to recruit
more farmers

SUSTAINING GRASSROOT EXTENSION
• Transition VDBAs/PFTs in agents
under the agent network models
(ANM):
– Bulk orders/lower transaction
cost
– Cost saving for farmers –
transport & time
Agro-
dealer
Agen
t
Agen
t
Individu
al
farmers
Farm
er
group

SUSTAINING GAINS FROM FTAI
 Breeding is the foundation of
dairy in precommercial dairy
areas
 While FTAI may have laid a
foundation, gains need to be
secured
 County supported breeding
programs are necessary
 3 counties supported to
develop blue-prints via
inclusive platform to
coordinate such programs
 This needs to be done for
the rest of the counties

AI BUSINESS CASE FOR COOPERATIVES
Roun
d
# of
semen
procured
Price of
semen/LN
from KAGRC
AI
charges
to
farmers
Sale price
of semen
to AI
providers
AMOUNT
retained
by AI
providers
Income to
COOP for
reinvestme
nt
INCOME
TO AI
PROVIDER
/S
1 200 260 1000 400 600 80,000 120,000
2 308 260 1000 400 600 123,076 184,615
3 473 260 1000 400 600 189,349 284,023
4 728 260 1000 400 600 291,306 436,959
5 1120 260 1000 400 600 448,163 672,245

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