Smallholder Dairy Commercialization Programme

At least 800,000 smallholder farmers in Kenya depend on dairy farming for their livelihood. Dairy production improves household nutrition and provides extra income. In addition to family labour, dairy farming generates jobs in wage labour and mobile milk trading for a further 365,000 people. These jobs benefit the poorest people in urban and rural areas.

The informal sector is the dominant force in milk trading. About 75 per cent of traded milk is sold outside the processing sector, both because consumers prefer unprocessed milk and because of inefficiencies in formal trading.

The programme fosters market-driven development of the informal dairy industry. It works with poor smallholder dairy producers and traders to strengthen their capacity to respond to market opportunities. It builds understanding of the market and technical knowledge of production processes, and improves organizational and enterprise skills.
 

Source: IFAD