June 06, 2024

Bridging Innovation: Strategic Inter-Partnership Exchange Visit in Kenya Unlocks Potential for Sustainable Dairy Development

Animal Production Related

Kenya

In the dynamic world of agricultural development, strategic collaboration and knowledge sharing serve as cornerstones for success. In a move aimed at fostering substantial growth and sustainable development in Kenya's dairy sector, 2SCALE facilitated an exchange visit between two of its partners, Meru Dairy Union (MDU), a high-performing farmers' cooperative union, and Kieni Dairy Products Limited (KDPL), a farmer-owned milk processing company with significant potential.

This initiative, part of 2SCALE's broader strategy to strengthen agribusiness clusters, provided an invaluable platform for cross-learning, highlighting the potential of collaborative efforts in transforming the agricultural landscape.

Exchange Visit: Learning from High Performers

In January 2024, a carefully selected delegation from KDPL embarked on a two-day learning expedition to MDU. The delegation included key management personnel and leaders from four affiliated farmer cooperative societies– Mweiga, Thuruthuru, Watuka, and Mulatha Cooperatives. This visit was planned to cover MDU's advanced operational facilities, including the union’s state-of-the-art factory and one of their artificial insemination satellites, as well as one of MDU's high-performing cooperatives. This visit was not only about observing but actively engaging with MDU's operational strategies and understanding their implications for enhancing KDPL’s own processes.

KDPL is still mostly running manually, and we are eager to learn about adopting emerging technology. We are keen on improving our operations from the quality of our products and market access to cost management and staff capacity,

explained William Githu, KDPL’s Chairman.

The first day was packed with activities at MDU's main factory and their innovative artificial insemination satellite in Githongo, Meru County. The KDPL team toured the facilities, guided by MDU's experts, where they delved into advanced milk testing and preservation technologies and learned about the sustainable use of combustible materials, such as dry maize cobs, for heating at the factory– an innovative alternative to traditional firewood.

A significant part of the day was dedicated to interactive sessions with MDU's leadership, including the CEO and board members. These discussions provided KDPL with insights into MDU's successful management strategies, such as the integration of ERP systems, effective quality control measures, and ways for maintaining favourable milk pricing for farmers.

We have set up a 24-hour economy that leverages technology. Our system operates from the farmer to the finance office. We have also invested in a research department to ensure we provide the very best to our farmers and customers,

explained Kenneth Gitonga, CEO of MDU.

Building Farmer Loyalty and Improving Productivity

The following day, the team visited Katheri Dairy Farmers’ Cooperative Society, one of MDU's high-performing affiliates, where they had one-on-one sessions focused on building farmer loyalty and improving productivity. The cooperative shared their practices in networking within the dairy value chain and strategies for empowering farmers, which have been crucial to their success.

Our challenges are the same; the high transport costs, bad roads, and competition from brokers. But loyalty is what keeps our farmers from derailing. Ask yourself, ‘what can I do for my farmers to improve milk production?’ If you work with that in mind, you will be able to achieve what we have achieved as a cooperative,

advised Wilson Gichuru, Chairman of Katheri Cooperative.

Post-Visit Progress and Initiatives

Motivated by the insights gained during the exchange visit, the KDPL delegation set clear goals aimed at enhancing their operational capabilities and farmer relations. Only three months into implementing these changes, KDPL has reported significant strides toward achieving their objectives.

Since the visit, KDPL has integrated advanced ERP systems to streamline their operations, significantly improving data management and operational efficiency. Additionally, they have fortified their quality control processes to ensure that their milk quality consistently meets or exceeds industry standards. KDPL has also refined their farmer pricing strategies, developing a more equitable and sustainable model to enhance farmer loyalty and retention.

In line with KDPL’s strategic enhancements, the cooperative societies under its umbrella have implemented training programs on financial literacy and modern agricultural practices, such as fodder production, which have been rolled out to boost productivity and sustainability at the farmer level.

So far, our cooperative’s service delivery has improved significantly; milk collection time is better and we have revived our agro-vet for farmers to get feed. We are also working on the modalities of training more youth in silage-making. The milk we collect daily has also increased from 3,150 litres to 3,700 litres,

shares Charles Wanjau, Manager of Mweiga Dairy Farmers’ Cooperative Society.

Additionally, operational processes, especially in milk collection and distribution, have been optimized to reduce costs and enhance logistical efficiency.

We introduced a new route in our milk collection and registered 30 dairy farmers to join our coopertaive. This contributed to the increase of the milk we collect from 1,700 litres per day, to 2,500 – 2700 litres per day.

Ms Leah, the manager of Mulatha Dairy Farmers’ Cooperative Society adds.

Broader Context and Future Implications

This exchange visit facilitated by 2SCALE has not only fostered practical knowledge exchange but also set the stage for potential long-term collaborations between KDPL and MDU. It is a prime example of how strategic inter-partnership collaborations can pave the way for a thriving dairy value chain that benefits all stakeholders involved. As KDPL and its cooperatives continue to integrate and build on the insights gained, they pave the way for a more competitive and sustainable dairy industry in Kenya.

Moreover, this model of collaboration and knowledge sharing holds potential for replication in other sectors, fostering innovation and sustainable development across the Kenyan agricultural landscape. Bolstered by mutual learning and shared objectives, this collaboration could further enhance the value chain, and contribute to a resilient agricultural sector, attracting more investors to Kenya’s dairy sector.

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