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East Africa Dairy Development
Kenya Country Office
LOGO

Milk-producing cows are perhaps the most valued and potentially profitable assets an African farm family
can own. They provide families with a dependable flow of cash, producing income from milk for substantial
periods of the year with immediate- to short-turnaround on payment. Yet most rural African households live in
poverty in spite of the potential that cattle offer them to earn well-above subsistence income.

The East Africa Dairy Development Project (EADD) aims at moving smallholder, women and men farmers
out of poverty by improving their profit through participation in the dairy value chain. EADD is a Heifer
International project funded by Bill & Melinda Gates Foundation as part of an agricultural development grant
designed to boost the yields and incomes of millions of smallholder farmers in Kenya, Rwanda and Uganda.
This project aims at helping smallholder dairy farmers double their incomes by increasing their production
of high quality raw milk and linking them to the markets. The project which is being implemented through
a partnership of three long established organizations working in targeted districts in Kenya, Rwanda and
Uganda. Each of these partners have specific areas of intervention – Heifer International – on livestock
production, farmer leadership and governance training as well as overseeing the overall implementation of the
project, TechnoServe Inc. bring in its rich experiences in Business Development Services, value chain models,
marketing and business systems support; ICRAF intervention will specifically be on feed and forage, ABS
TCM on breeding and genetics and ILRI on research monitoring and evaluation.

The vision of success for the East Africa Dairy Development Project is that the lives of 179,000 families—or
approximately one million people—are transformed by doubling household dairy income by year 10 through
integrated interventions in dairy production, market-access and knowledge application. EADD Kenya team
aims to reach 110,000 farmers out of which 10,000 would be fodder farmers. The EADD Project therefore
aims to achieve its vision of doubling smallholder dairy income by improving on-farm production and market-
access.

For more information regarding EADD contact at:
Country Project Manager or Information Officer P.O. Box 5201 - 30100, Elgon View, Eldoret
T: +254 053 2031273/8 F:+254 053 2031274 E: a.cheruiyot@eadairy.org or jane.kithuka@eadairy.org

Kenya Country Office LOGO

The project seeks to improve on-farm productivity by:
§ Increasing the volume of milk produced through various training on animal production and long term
through breeding and genetics.
§ Improving milk quality and reducing loss through spoilage through various training at the farm level as well
as at the plant level.
§ Providing access to production inputs through business development services.

Market-access will be improved by:
§ Developing local hubs of business delivery services and cooling plants that facilitate market access.
§ Linking producers to formal markets through processors.

The project hopes to accomplish these aims through coordinated, farmer-focused interventions that integrate to
develop smallholder profit-participation in the dairy value chain. These interventions are expected to generate
information and develop innovative solutions, expand dairy markets and market access for farmers, and sustainably
increase dairy productivity. The project works with key stakeholders through facilitation to enable them provide
various services to farmers on a sustainable basis.

The project is organizing farmer business associations, either in form of cooperatives or limited liability companies
to own and manage the established cooling plants. Famers are required to invest in these cooperatives through
share purchase and show commitment through sale of their milk through those cooperatives. The project will
facilitate the farmers to sign supply contracts with processors upon bulking their milk through the established
cooling plants. The project will also develop the cooling plant as a hub where farmers can access all the services.
These services include linkages to AI service providers, Animal health providers, establishment of an agrovet shop
related to the company, linkage to banks and microfinance institutions and establishment of Financial Services
Associations informally referred to as village banks.

The project is expected to enable farmer set up 13 new chilling plants and work with 4 old cooling plants during
the 4-year pilot period. It is also expected through this plant to reach 100,000 smallholder dairy farmers and
10,000 fodder farmers.

During the initial four year pilot phase the project targets Bomet, Buret, Nandi North, West Pokot, Marakwet,
Keiyo, Nyandarua, Nyeri, Molo and Uasin Gishu districts of Kenya. EADD is also working closely with the
already established cooling plants in Kipkellion, Ol Kalou, Kipkaren and Siongiroi to improve on their efficiency
and their profitability through various trainings.

EADD Project has set up a US$ 5 million Investment Fund to be loaned to qualifying farmer business associations
in form of limited liability companies in the target project area initially to co-finance the establishment of the
cooling plants. This fund will however revolve and is expected to enable the project support many farmer
companies to establish and expand their milk chilling business. This fund will be managed by reputable financial
institutions who will receive loan applications, appraise the loans and sign loan contracts with farmer business
associations. The project will prepare the farmers through working with managers hired by the farmers to carry
out feasibility studies and preparation of business plans as required by the financiers.


East Africa Dairy Development LOGO
Partner Profiles
Heifer International
Heifer was founded in 1944 by a relief worker responding to the human suffering caused by the
devastation of the Spanish Civil War. Dan West, an Indiana farmer, ladled milk to children and women
daily; by midday, supplies of dried milk were gone, forcing many to leave hungry. Heifer International was
conceived to move families beyond relief to sustainable self-reliance by providing them with the tools and
resources needed to provide for themselves.

Building on the experiences of six decades, Heifer is poised to meet the challenges presented in today’s
developing countries. Heifer envisions a world of communities living in peace and equitably sharing the
resources of a healthy planet. Between 2000 and 2010, Heifer plans to directly assist 4.5 million women,
girls, boys and men to achieve sustainable income and food security in an environmentally sound manner.
Future plans are guided by an organizational strategic plan which includes the following areas of focus:
§ Building sustainable livelihoods and food systems
§ Promoting knowledge, skills and power
§ Influencing policies, systems and practices
§ Instituting organizational change
www.heifer.org

In 63 years, Heifer has provided assistance to more than 9.2 million families or 48 million people in more
than 125 countries and 38 U.S. states. Heifer’s hallmark practice of “Passing on the Gift” has extended
initial gifts of livestock and training to millions of people.

Current Heifer Activities
In 2006, Heifer had projects in 57 countries and 29 U.S. states. Heifer employs more than 850 people,
including 554 international staff. Each of its four area programs –Africa, Americas, Asia/South Pacific and
Central/Eastern Europe—is administered by a professional from that region. Heifer’s country programs
employ local professionals such as sociologists, economists, livestock health specialists and community
development experts.

Heifer Experience in Project Development and Implementation
Heifer’s earliest on-going African project began in 1974 in Tanzania, which was soon followed by the
establishment of Heifer Cameroon. Heifer created the Africa program in the early 1980’s.

Heifer has four country programs in East Africa, implementing integrated livestock projects with an
emphasis on dairy cattle and goats, but also including camels, beekeeping, donkeys and fish farming.
Projects typically incorporate gender equity and HIV/AIDS training, as well as leadership development and
values-based planning for community development.


LOGO
Partner Profiles
Heifer International
Heifer Experience in Project Development and
Implementation...cont’d

Heifer started work in Kenya in 1981 and has artificial insemination to improve local breeds
assisted rural farmers in the Western, Nyanza, of dairy cows and through improved animal
Coast, Rift Valley and nutrition.
Central provinces of
the country to develop
“If we are serious about ending ex-
The project will provide
sustainable agriculture treme hunger and poverty around extensive training in
enterprises. Work in animal agriculture,
post-Amin Uganda
the world, we must be serious about business practices and
began in 1982 through transforming agriculture for small other subjects. The
a request from the project targets specific
Church of Uganda.
farmers” districts in Kenya,
Because Uganda’s Bill Gates, Co-Chair, Bill & Melinda Rwanda and Uganda.
male population has
significantly diminished Gates Foundation
due to war and AIDS, Heifer Awards and
Heifer works to help Recognition
women increase their income and nutritional status
by engaging in dairy cattle and goat projects. Heifer International has been recognized by every
Heifer began work in Rwanda in 2000 through a $1 U.S. president from Dwight Eisenhower to Bill
million grant from the US Agency for International Clinton and has received awards in numerous fields
Development. Projects utilizing dairy cattle promote of endeavor. Among recent recognition are the
continuity, sustainability and harmony in this following:
country following the 1994 genocide.
§ Mildred Robbins Leet Award from InterAction for
Heifer also plays a lead role in the non- advancing women’s empowerment, 2007 (the
governmental organization community. Jo Luck, second time this award has been made to Heifer
Heifer President and CEO, serves as co-chair of International)
the InterAction Steering Committee on Monitoring § Fast Company/Monitor Group Social Capitalist
and Program Effectiveness. Award, 2006
§ Conrad N. Hilton Humanitarian Prize, 2004
§ Forbes, Goldstar List of top 10 charities, 2004
Heifer will organize farmer business § “One of Seven Ways to Change the World”
associations to own and manage the chilling – National Peace Corps Association, 1997
plants. Milk production will be increased through


LOGO
Partner Profiles
International Livestock Research Institute (ILRI)
ILRI works at the crossroads of livestock and poverty, bringing high-quality science and capacity-
building to bear on poverty reduction and sustainable development for poor livestock keepers and their
communities. ILRI works in partnership and alliance with other national and international organizations in
livestock research, training and information. It works in all tropical developing regions of Africa, Asia, and
Latin America and the Caribbean.

ILRI is a non-profit, intergovernmental organization with headquarters in Nairobi, Kenya, where a research
team focused on improving market opportunities for smallholders in livestock and livestock product
markets is also located. Under US tax law, ILRI is an international organization.

ILRI’s strategy focuses on three livestock-mediated pathways out of poverty: (1) securing the assets of the
poor, (2) improving the productivity of their livestock systems, and (3) improving their market opportunities
in the face of rapidly changing market channels and demands. ILRI’s research portfolio includes five issue-
oriented themes:
§ Targeting research and development opportunities
§ Enabling innovation
§ Improving market opportunities
www.ilri.org

§ Using biotechnology to secure livestock assets
§ People, livestock and the environment.

ILRI also manages the Systemwide Livestock Program of the Consultative Group on International
Agricultural Research (CGIAR).

ILRI Experience in Project Development and Implementation
ILRI has extensive experience in project development and implementation in developing countries.
ILRI leverages its multidisciplinary expertise in economics, epidemiology, systems analysis, animal
science and biotechnology to provide action-oriented research and diagnostic inputs that can be
applied in development settings. A large proportion of ILRI’s work is geared toward serving the needs of
implementers of development projects, including government agencies and NGOs, to ensure immediate
uptake of research results.

One recent example is the Smallholder Dairy Project (SDP) that was led by Kenya’s Ministry of Livestock
Development and won two separate CGIAR Science awards: effective partnerships in 1997 and effective
communications in 2005, the year it ended. SDP started with an intensive diagnostic phase, involving the
characterization of the dairy systems in the Kenya Highlands and taking a production-to-consumption
chain approach. Specific technologies were then pilot-tested (for example, concentrate re-allocation at
the beginning of the lactation) with a local cooperative. The main intervention area was the marketing of
unprocessed milk by small milk traders who were not officially recognized by the authorities.


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Partner Profiles
International Livestock Research Institute (ILRI)

ILRI Experience in Project Development and
action plan based on survey data at the producer,
Implementation...cont’d
market agent and consumer levels. The action plan
will identify specific interventions at the farm or
The findings from the SDP research were
market levels to alleviate current constraints and will
disseminated successfully through a variety of
improve current opportunities. The action plan will
channels, while an advocacy group was created
be district-specific, given
with various NGOs to help
change decision makers’ “working at crossroads of livestock the large heterogeneity
in production and market
mindsets toward the and poverty, bringing high-quality systems across the state.
www.ilri.org

legalization of mobile milk
traders. A training program science and capacity-building to bear
Other similar ongoing
on hygienic milk handling on poverty reduction and sustainable efforts are targeted at
practices for these small-
development for poor livestock keep- improving livestock-
scale traders was also
product markets in
developed in collaboration
with the Kenya Dairy
ers and their communities” various countries and
regions. For instance,
Board that allows traders
ILRI supported a project
to operate freely, creating
led by Terra Nuova, an Italian-registered NGO,
employment opportunities and economic growth.
which aimed at improving livestock diversification,
marketing and trade in Somalia. ILRI led the
Key lessons learned for pro-poor policy change,
diagnostic phase, with inputs from a range of
institutional approaches and technologies have
economists, epidemiologists and animal breeders.
since been scaled up in the Eastern African region Livestock movements were tracked through
by key regional and national agencies using their geographical positioning system and trekking
own resources. routes, while other service providers were mapped
using geographical information systems to identify
In addition, ILRI is working with the Government of possible bottlenecks in the marketing channels.
Assam, India, on an on-going dairy development Surveys at the livestock-producer and market-agent
project funded by the World Bank. As in the case of levels combined with geographical information
SDP, ILRI leads the diagnostic phase of the work allowed the project team to develop relevant and
in Assam, which is aimed at developing a pro-poor feasible interventions.


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Partner Profiles
TechnoServe (TNS)
TechnoServe was founded in 1968 by U.S. businessman Ed Bullard, a pioneer in private-enterprise
approaches to solving poverty in the developing world. His key insight was that economic progress and
sustainability required market-based solutions. He built TNS to help entrepreneurial men and women in
the developing world build businesses that create income, opportunity and economic growth. TechnoServe
remains true to that mission and to Bullard’s innovative spirit.

The senior management team is led by the president/CEO in Washington, DC, with offices in Norwalk, CT.
TechnoServe is organized into two field divisions; Africa and Latin America. Each of the two divisions has
permanent operations in five to 10 countries at any given time. Current country offices include Colombia,
El Salvador, Ghana, Guatemala, Honduras, India, Kenya, Mozambique, Nicaragua, Peru, Rwanda, South
Africa, Swaziland, Tanzania and Uganda.

TechnoServe has a global team of more than 370 staff, of whom greater than 90 percent are host-country
nationals in the field.
www.technoserve.org

In 2006, TechnoServe impact included:
§ $96.9 million in sales from 215 TechnoServe-assisted businesses (almost double 2005 levels)
§ $51.8 million in purchases from 173,180 rural producers (48 percent increase over 2005)
§ 918,900 rural men, women and children benefited from higher incomes because of the wages and
income provided by TechnoServe-assisted businesses
Of the 215 assisted businesses:
§ 76 percent are farmer-owned cooperatives and associations
§ 24 are entrepreneur-formed businesses-partnerships, corporations, sole proprietors

TNS Experience in Project Development and Implementation

TNS has 38 years of experience in value-chain improvement efforts across Africa and Latin America.
In 2004, the Schwab Foundation selected TNS as “one of the world’s top ten outstanding social
entrepreneurs” for work in this space. TNS commenced work in the coffee sector in 1968 and has worked
continuously in East Africa since the early 1970s.

In the past seven years, TechnoServe has developed a unique approach to empower dairy producers
through the creation of milk-bulking, cooling and marketing centers. Transforming the industry from a
subsistence mindset to a commercial mindset, these centers enable thousands of small-scale farmers to
access markets directly and to participate in value-addition opportunities in the formal sector. This work
activates a “virtuous cycle” in which farmers reinvest higher earnings into their dairy businesses, leading to
further growth in production and income. Triggering a multiplier effect, the cooling plants also function as
hubs through which farmers can access micro-loans, healthcare and education.


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Partner Profiles
TechnoServe (TNS)
TNS Experience in Project Development and Implementation...cont’d

TechnoServe assists the dairy centers with managing and growing their businesses, providing basic advice
in accounting and identifying opportunities in new markets. Besides creating new jobs, these centers help
smallholders improve farm practices, acquire market information and access farm inputs. This model also
links dairy producers to reliable buyers, to technical assistance and to financing. For example, the three
cooling plant enterprises currently supported now purchase more than $3 million annually in milk from
10,000 smallholder farmers, generate more than $5 million in annual revenue and employ more than 100
full-time factory workers and managers. TechnoServe has seen similar levels of impact through its value
chain work in coffee, cashews and fresh whole fruits.
www.technoserve.org


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Partner Profiles
World Agroforestry Centre
The International Council for Research in Agroforestry (ICRAF) was created in response to a visionary
study in the mid-1970s led by forester John Bene of Canada’s International Development Research
Centre (IDRC). The study coined the term ‘agroforestry’ and called for global recognition of the key role
trees play on farms. This led to the establishment of ICRAF in 1978 to promote agroforestry research in
developing countries. ICRAF continued the process of institutional transformation by developing a science
culture, building excellent research facilities and doubling its financial and human resources by 1996. The
Centre formally adopted an integrated natural resource management framework for all of its work, and
institutionalized its commitment to impact by creating a Development Group dedicated to moving research
results onto farmers’ fields.

In 2002 the Centre acquired the brand name the ‘World Agroforestry Centre’. The ‘International Centre for
Research in Agroforestry’ remains our legal name and we continue to use the acronym ‘ICRAF’. The new
name reflects the fact that the Centre is now recognized as the international leader in agroforestry research
and development. Realistically, however, the Centre cannot possibly provide expertise on all conceivable
dimensions of agroforestry—nor do we wish to do so. There are advantages to specialization, which is
why the Centre engages in strategic alliances with a range of other institutions. Some of these partners
are centres of scientific excellence in specific topics of relevance to agroforestry; others specialize in the
www.icraf.org

effective delivery of research results to farmers fields.

The vision

The Centre’s vision is a rural transformation in the developing world where smallholder households
massively increase their use of trees in agricultural landscapes to improve their food security, nutrition,
income, health, shelter, energy resources and environmental sustainability.
This vision is founded upon three basic tenets:.
1. The growing importance of trees and treebased systems in sustaining livelihoods and
agroecosystems;
2. The Centre’s experience and comparative advantage in advancing agroforestry research for
development;
3. A global commitment to achieving the Millennium Development Goals.

The Mission

The Centre’s mission is to generate science-based knowledge about the diverse roles that trees play in
agricultural landscapes and to use its research to advance policies and practices that benefit the poor and
the environment. Success in achieving this mission will be demonstrated by the increased use of improved
trees and tree-based systems, significant gains in the overall productivity of smallholder farming systems, a
marked reduction in poverty, and significant improvements in environmental quality. Our goal is to become
a partner of choice for a range of scientific and development institutions in their efforts to generate tree-
based solutions to the global problems of rural poverty, hunger and environmental degradation.


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Partner Profiles
ABS/TCM
African Breeders Services Total Cattle Management, Limited (ABS TCM) is a distributor for American Breeders
Service a world leader in bovine genetics and artificial breeding technology. ABS TCM, Ltd. partnered with
Land O’Lakes, Inc. in the implementation of the recently ended USAID funded Kenya Dairy Development
Program.

In Kenya, ABS TCM, Ltd. maintains fully staffed facilities for genetics distribution, liquid nitrogen production and
feed analysis laboratory, all backed up with competent teams of milk quality service and nutrition consultants.
From this base of excellence, ABS TCM, Ltd expands the adoption of dairy productivity-enhancing technologies;
enhances viable business linkages throughout the dairy value chains, from small farmer to end-consumer
– including producer and marketing associations; and promotes domestic, regional, and international trade in
dairy products. This is accomplished through a market development approach that supports appropriate roles
of the public and private sectors in the dairy sector, facilitates commercial provision of dairy-related business
services and advocates for policy, regulatory and legal reforms that heighten performance in the sector.

ABS TCM utilizes and strengthens local provision of support services and encourages the service providers
to adapt to the needs of smallholder dairy farmers. Effective technical assistance is provided to sustainability-
www.abstcm.org

oriented organizations and other commercially-oriented actors (e.g. agrovet shops, milk cooling hubs, artificial
inseminators, milk processors, trainers, etc) to build their capacity and to encourage a vibrant, competitive and
sustainable dairy sector service industry. Valuable dairy inputs are distributed to the farmers through hundreds
of private sector-oriented small-scale entrepreneurs. ABS TCM Ltd uses Scalable Embedded Distribution
and livelihood Partnership models as part of its grassroots approach to emerging markets. In this manner,
ABS TCM, Ltd. avails to smallholder dairy farmers proven genetics, breeding supplies, mastitis prevention
and control products, agricultural equipment and agriculture technology that can substantially increase dairy
productivity and grow household incomes.

Recent Past performance - Project Description/Skills and Expertise

Kenya Dairy Development Program (KDDP) USAID Grant # 623-A-00-02-00097-00). Sub-grant from
Land O’ Lakes, Inc.
Kenya Dairy Development Program (KDDP) aimed to increase household incomes of smallholder dairy
farmers by improving milk productivity and trade. The key objectives were: 1. Consumer promotion and
marketing activities, 2. dairy product quality, safety and affordability activities; 3. enhancing dairy productivity
activities; 4. dairy industry capacity building activities. Activities of ABS contributed directly to the following
intermediate results of USAID’s Strategic Objective 7: 7.1.2 – Increased Use of Technology; 7.1.4 - Increased
Participation of Private Sector in Delivery of Services; 7.2.2 – Performance of Market Systems Improved.
Specific activities facilitated by ABS were to improve milk productivity by promoting use of technologies such
as improved genetics, best management practices and availability of dairy input services. Increased milk
trade through development of market information database and availing information to smallholder farmers
through project deliverables such as catalogue, newsletters, among key private and associated sector players
within the dairy industry. The program targeted medium and high potential areas of Kenya.


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Partner Profiles

In line with the market facilitation approach of USAID’s Business Development Services program, ABS
achievements in the key areas of service provided include:
Strengthened delivery of dairy input services to >87,000 smallholder farmers; strengthened capacity of
breeding management service providers to deliver best management services and improved genetics to
the farmers by training 387 A.I. service providers who inseminated over 120,000 units of proven genetics;
transferred seven (7) A.I. equipment technologies; more than 250 service providers business skills were
strengthened; developed five (5) market information systems to increase over 100,000 smallholder
dairy farmers’ access to market information as follows: interactive voice response platform, web portal
www.eadairy.com, radio program “Kilimo Shambani”, information centers and dairy newsletter. Participated
in Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP) and trained BSP’s on integrated pest
management (IPM) practices, facilitated biogas installations and use.
www.abstcm.org

Improving the efficiency of milk marketing via the development of sustainable service providers.
Project No. D-SP-02 Technoserve, Inc. Sub grant
The project provided technical support for farm level business service provision and linked smallholder
farmers to the bulk milk chilling centers. Identified business service providers were capacity built on breeding
and A.I. management, herd management, feed conservation, personal and milk hygiene, dairy production and
assisted to access to credit. Achievements were:
Participation of over 10,300 smallholder farmers; 90% reduction in milk rejected at the bulk chilling hubs;
capacity built 120 private service providers of which the majority (>52%) are experiencing business growth;
Increased purchase of business service including A.I. and animal health services while herd management
and fodder conservation largely remained an embedded service.
Lessons learnt were that capacity building of service provider’s should focus on training on multifaceted
business service skills so that they are sustainable. Also, the hub model – milk check off system for providing
services via the bulk chilling hub represents a good business model that enhances farmer access to service.

Western Kenya Dairy BDS Project. Project No. D-SP-014 Technoserve, Inc. Sub grant
This project replicated Project No. D-SP-02 carried out in Central Province. Western Kenya province is a milk
deficit area thus, to encourage milk production, the project introduced a 3 –Ton Club concept for farmers to
form business groups and better access business and extension services. 758 farmers from the target area
have registered for the 3-Ton club; the project worked with 11 women and youth groups with an average
membership of 30 each. > 6,000 farmers (30% women and 10 % youth) were mobilized and sensitized;
37 A.I. technicians trained and business skills for 82 existing business service providers upgraded; A 40%
reduction in milk rejection was realized by farmers now collecting and marketing over 12,950 liters of milk;
1,922 inseminations using proven genetics were carried out. Transferred 3 technologies for milk quality
control i.e. 97 farms now screen for sub-clinical mastitis using milk conductivity devices; 4 farmer groups are
now monitoring bulk milk somatic cell count; 2,100 liters of teat dip have been purchased by farmers with a
10% monthly increase in demand.


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