TechnoServe has been working in Kenya's dairy industry for three years, facilitating market change to increase smallholder dairy farmer incomes. They have engaged informal market actors like producers, traders, and processors to formalize their systems and improve business efficiency. TechnoServe also provides training, links private sector partners to dairy hubs, and establishes agent networks to improve smallholder farmers' access to products, services, and information in the dairy supply chain. The goal is to develop more effective and inclusive retail and supply chains for feed, breeding services, and veterinary care in order to strengthen dairy farmers' livelihoods through market-based solutions.

1. African Dairy Enterprises Development
John Logan, Country Director,
TechnoServe Kenya

2. Market System Development
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3. Business Solutions to Poverty TechnoServe | 3
Market System Development
Improved production & more
effective markets
Weak, inequitable and
inefficient systems
Poor are dependent on
systems for their livelihoods
that do not work well
TechnoServe strives to make
Market Systems work for the
poor

4. Private Sector Engagement
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Private Sector
Private sector engagement is at the core of market systems development
Outcomes
Products Services Information
Market Systems for the Poor allows better access to resources for upgraded
business activities

5. TechnoServe’s Role with the Private Sector
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Coach
Communicator
Relationship- Builder
Systems Analyst
Innovator
As a market system facilitator, TechnoServe plays the following roles:
Coaching and guiding large and small enterprises that are
interested and willing to adopt new retail and marketing strategies
and create more pro-poor product and service offers/ bundles.
Helping raise awareness and create knowledge within rural markets
around commercial outreach strategies, retail and distribution
models.
Creating better relationships between market actors: private sector,
consumer groups, producer groups, business support services,
local communities, public institutions and government.
Building feedback mechanisms for the poor to ‘be heard’ ensuring
there are institutions to counteract powerful elite interests from
within the private sector and government.
Supporting product development and innovation by providing
technical support and cost-sharing pilots; helping advise and steer
strategy; supporting people development with new competences
and skills.

6. TechnoServe’s Expertise with
Market System Development
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7. TechnoServe’s Expertise
• Over the last three years,
TechnoServe has been working
in the dairy industry in Kenya as
a facilitator of market change.
• TechnoServe has been helping
increase dairy farmers
household incomes by
facilitating the development of
more effective retail and
supply chains for feed, breed
and livestock health
(veterinary services).
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8. Kenya Market Assistance Program (MAP)
• In DFID/ UKAid, Kenya Market
Assistance Program (MAP) region of
support, the majority of poor dairy
farmers are not active in the formal
market
• TechnoServe has been engaging
informal market actors (producers,
traders, processors) to formalize their
processes and systems to improve
business efficiency
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Kenya
Counties of
Operation

9. Milk in the Supply Chain
• Milk is usually the first entry point
for farmers in the formal market
channels.
• Over time, this has developed to
allow farmers to access credit on
“check-off” through their hubs or
aggregators who are prepared to
support this.
• The hub FSA’s have the potential
to access finance for members to
ramp up milk production and that
of other crops (maize & potatoes).
• In the case of milk and dairy
hubs, the market does unlock
resources for cash strapped, but
entrepreneurial farmers.
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10. Professional Management
Firms (KMPG & PFK)
+
Marketing Firms (market
research & branding)
+
Training Firms
Linked to provide a
package of support to
help turnaround and grow
underperforming dairy
hubs
Independent commercial
training firms
+
Universities
+
Government agriculture
training institutes
Rolling out training in
retail management and
marketing strategies for
dairy hubs and agrovets
Agrovets
+
Dairy Hubs
Set up agent networks to
help rural farmers get
better access to products,
services and information
Agent networks
Also provide an informal
feedback channel to
escalate complaints and
problems in the market
and put pressure on
agrovets and dairy hubs
to create more farmer-
centric strategies
Package of
Support
Training
Agent
Networks
Informal
Feedback/
Strategies
Professional Management & Marketing Firms
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11. Retail Training and ICT
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Retail & IT Market Actors
More efficient supplier
and customer
management
Better quality hay,
feed and mineral
concentrates and
supplements
Marketing strategies that are responsive to the market needs and wants have
been developed
Artificial
insemination and
veterinary services
Payment plans from
equipment providers
Better product
bundles

12. Thank you
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