THE EADD KENYATHE EADD KENYA11STST E-DAIRY E-DAIRY

CONFERENCECONFERENCESAFARI PARK HOTELSAFARI PARK HOTEL

Augustine Cheruiyot & Team

East Africa Dairy Development East Africa Dairy Development Project - KenyaProject - Kenya

Funded by a grant from The Bill and Melinda Gates Foundation

4 year (2008 – 2011) farm-to-table industry development project

Primary objective of doubling incomes of 110,000 small holder dairy famers, transforming livelihoods of over ½ million people

Implemented by a consortium of 5 partners led by Heifer International

Currently in 3rd year of a 4 year pilot program

Double farmers Income Double farmers Income - How?- How?

Bulking Value addition – chilling & quality improvement Productivity improvement

Animal health Animal husbandry Sustainability of production through feed conservation

Long term breeding Other related services – bulk purchase of goods

come with discounts

21 DFBAs in place all engaged formally with 83,56983,569 farmers reached vs a target of 110,000 farmers – 24,998 24,998 mobilized in 2010

8 Chilling plants established in 2010

12 CPs set up to date with farmers total investment being Kshs.185 million and + 5 old CPs

14 DFBAs kitted with AI equipment from POG revolving fund

19 DFBAs 19 DFBAs actively selling milk and have sold 70 million Kgs 70 million Kgs in 2009/2010 – an average of 156,935Kgs per day earning farmers US$18 million (US$10 million in 2010 alone)US$18 million (US$10 million in 2010 alone)

Key Highlights of 2010 - KenyaKey Highlights of 2010 - Kenya

Key Highlights of 2010 - KenyaKey Highlights of 2010 - Kenya

Formation of 1,450 DMGs/CIG’s Training of 12,041 women in group dynamics and leadership 4,243 Farmers participating in Exchange visit 11,743 Cows register in 2010– cumulative – 37,063 cows 31,776 original AI carried out since inception Successfully tested linked dairy management systems in two

sites

17 Operational Chilling 17 Operational Chilling PlantsPlants

1. Siongiroi Dairy

Plant

2. Tanykina Dairy

Plant

3. Kipkelion Dairy

Plant

4. Olkalou Dairy

Plant

5. Kabiyet Dairy

Plant

6. Sot Dairy Ltd

7. Kokiche Dairy

Plant

8. Cherobu Dairy

Plant

9.9. Kieni Dairy Kieni Dairy

PlantPlant

10.10. Tindiret DairiesTindiret Dairies

11.11. OlenguruoneOlenguruone DairiesDairies

12.12. Cherangany DairiesCherangany Dairies

13.13. Kinangop Dairy Plant – Kinangop Dairy Plant –

MukiMuki

14.14. Lelan Highland Dairies LtdLelan Highland Dairies Ltd

15.15. Metkei Multipurpose LtdMetkei Multipurpose Ltd

16.16. Chepkorio dairiesChepkorio dairies

17.17. Taragoon DairiesTaragoon Dairies

Chepkorio DairiesChepkorio Dairies

Taragoon Dairies Taragoon Dairies

Metkei Metkei Cooling Cooling PlantPlant

Lelan Highlands DairiesLelan Highlands Dairies

Examples of Examples of success:success:

•Sales US$ 2 .07 millionSales US$ 2 .07 million•Farmers payouts US$ Farmers payouts US$ 1.81m1.81m•Registered farmers : Registered farmers : 55155515•Milk kg per day: Milk kg per day: 30,34230,342•Acquired 2 more tanksAcquired 2 more tanks

oSales US$ 0.89 millionoFarmers payouts US$ 0.812moRegistered farmers : 5,540oMilk kg per day: 20,792oAcquired a milk tanker•Sales US$ 1.14 Sales US$ 1.14 millionmillion•Farmers payouts US$ Farmers payouts US$ 1.27m 1.27m•Registered farmers : Registered farmers : 6,7016,701•Milk kg per day: Milk kg per day: 17,99117,991•Got support from Got support from TetraPak to buy a TetraPak to buy a 5,000Kg tank5,000Kg tank

Chilling clients Performance Chilling clients Performance summarysummary

Jan-Nov,2010 Jan-Nov,2010Business Indicator Actual

total

Total Sales Revenues US$

11,537,2111,537,2177

Money Paid to farmers US$

10,027,4210,027,4299

Net profits US$ 463,681463,681

Total milk delivered Kg 40,312,9440,312,9433

Daily milk intake Kg 156,935156,935

Total Registered farmers

83,56983,569

Total Active milk suppliers

28,14028,140

Farmer Equity to date US$

433,037433,037

Milk sales per farmer US$

410410

EADD Kenya Chilling plant EADD Kenya Chilling plant Business Highlights Business Highlights

CP Results Summary 2008 2009 2010 Total

Chilling plant Sales US $

3,687,905

6,382,000

11,537,217

21,607,122

Money paid to farmers US$

3,252,339

5,616,753

10,027,429

18,896,521

Total Milk sold by farmers Kg

11,862,172

18,588,344

40,312,943

70,763,459

Net Profits US $ 44,675 163,672 463,681 672,028

Registered farmers 23,134 35,437 24,998 83,569

Cost effective supply of goods and servicesCost effective supply of goods and servicesMilestone Overa

ll Targe

t

2008

2009 2010 To date

% Achiev

ed

BDS providers trained 308 0 402 405 807 254%Farmers accessing BDS 100,00

00 30,08

864,794 94,882 94%

Farmer owned FSA/ Sacco established

11 0 4 2 6 54.5%

The Solution – Transforming Chilling plants to Business Hubs

TRANSPORTERSTRANSPORTERS

TESTINGTESTING

FARMERS

FIELD DAYSFIELD DAYS

FEED SUPPLYFEED SUPPLYAI & EXTENSIONAI & EXTENSION

VILLAGE BANKSVILLAGE BANKS

OTHER RELATED MEsOTHER RELATED MEs

HARDWARE SUPPLIERSHARDWARE SUPPLIERS

CHILLING HUBCHILLING HUB

Business Indicator

Actual total

Total FSAs established 4

Total membership 3,256

Total Savings US$ 1.3 million

Total Share Capital US$ 54,038

Total Net Profit US$ 22,989

Total assets US$ 189,638

Over 192 motorbikes acquired by BDS services providers linked and guaranteed by EADD and CPs to access loans from the banks Lead partner is Family Bank

Ltd Others banks on the pipeline

with similar products: Cooperative bank, CfCStanbic, Equity, KCB and K-Rep

11 sites equipped with minilabs and 126 AHAs & Vets equipped with basic veterinary kits

Breeding Achievements : 2008 - Breeding Achievements : 2008 - 20102010

MilestoneMilestone 2002008 8

2002009 9

2012010 0

TotaTotal l

Original, artificial inseminations performed (1.6/cow)

2,162

28,858

31,776

62,796

Farmers adopt animal passport for traceability

5,553

9,641 20,477

35,671

Number of CAHP accredited on AI 28 61 66 155Farmers trained in basic animal recordkeeping and traceability

1,200

29,520

32,195

62,915

Establishing Services: Establishing Services: Equipping AISPsEquipping AISPs

The Government: MOA, MOLD, MOC, MOY & Provincial Administration

Kenya Dairy BoardNNET group - NKCC

Nestle, - Milk quality kabiyet Tetrapak – KES 5.8 million to develop two DFBAs

Brookside Dairies, Molo Milk, Sameer Agric and Premier dairies

K-Rep Development AgencyTalent CommunicationsKVA, IOMFina Bank , Coop Bank, Family BankThe DFBAs!

Key PartnersKey Partners

Good partnership with the Good partnership with the GovernmentGovernment

Signing partnership Signing partnership with IOM in with IOM in Cherangany CPCherangany CP

TetraPak Handing over TetraPak Handing over Kshs.3 million dummy Kshs.3 million dummy

cheque to Kokiche cheque to Kokiche ChairmanChairman

Metkei partnership with TetraPak

Objective of ICT in Objective of ICT in EADD-p EADD-p

•Sales US$ 2 .07 millionSales US$ 2 .07 million•Farmers payouts US$ Farmers payouts US$ 1.81m1.81m•Registered farmers : Registered farmers : 55155515•Milk kg per day: Milk kg per day: 30,34230,342•Acquired 2 more tanksAcquired 2 more tanks

oSales US$ 0.89 millionoFarmers payouts US$ 0.812moRegistered farmers : 5,540oMilk kg per day: 20,792oAcquired a milk tanker•Sales US$ 1.14 Sales US$ 1.14 millionmillion•Farmers payouts US$ Farmers payouts US$ 1.27m 1.27m•Registered farmers : Registered farmers : 6,7016,701•Milk kg per day: Milk kg per day: 17,99117,991•Got support from Got support from TetraPak to buy a TetraPak to buy a 5,000Kg tank5,000Kg tank

Objective ICT in EADD Centralized and localized information

systems and databases. Data Collection and processing Faster decision making Provide access to Services Milk Traceability Cattle registration and tagging.

Milk Collection System

Access to services

Dairy Management software Developed a dairy management and Village bank software

that caters for; Data collection and milk payment processing as well as

other operational modules Accounting and financial management that include, asset

management, P&L ,Balance sheet, Cash flow and budgeting modules.

SMS module Integration to Agrovet POS and Village bank management

software.

Payoff to the Chilling Plant and Farmer

Chilling Plant,Agrovet,Village Bank Data accuracy and integrity Faster data and payroll processing. Increased efficiency in service delivery. Timely reconciliation and preparation of accounting and

financial reports. Enhancement of corporate governance and risk

management. Better tracking of payments to relevant government

authorities such as Tax and KDB cess. New product development( SMS information products,

Advertisements and MPESA)

Cont Farmer

Correct milk records Access to Historical farmer information increasing the

chances of getting a loan. Access to credit facilities as providers can access credit

worthiness. Access to Information on SMS leading to less travel time

and more on-farm time. This leads to savings in transport costs.

Confidence in dairy enterprises.

Cont.. Other Stakeholders

Access to farmer historical information. Access to a large pool of farmers for advertisement and

promotions. Share of information between National database and

EADD.(API)

•Milk intake•Transporters•Inquiry Module•Members management•Security and system administration.•SMS and Mpesa•End of day processing•Agrovet management•Import/export facility•Payroll processing

•Chart of accounts•Journals•Asset register•Profit and loss reporting•Balance sheet and cash flow reporting•Annual budgeting module.•Integration/API modules

Features of FSA Software BOSA

Loans Shares Dividends Share refund Member withdrawal Journal Entries on members personal Accounts

Features cont… FOSA

Deposit and withdrawal API with EASYMA, ATM,SMS,MPESA Current accounts Savings accounts Fixed deposit Cheque receipting and clearance Advances

FAQs ICT is expensive

ICT is not expensive compared to the volume of business or turnover.

Support.There is on site and team viewer support.

Requirements Server Network 2-3 Pc’s

Thank You!