Develop Dairy Smallholder Business Organizations
Some of the most significant opportunities to increase industry competitiveness are found on-farm and at milk collection/bulking centers (MBCs). Milk yields and seasonal production volumes at the farm level drive raw milk supply. Milk bulking and cooling systems drive milk quality as well as transportation and collection efficiencies.
The majority of Kenya's smallholder dairy producers sell their milk through farmer-owned and/or managed MBCs, which provide critical economies of scale for both output markets (milk bulking) and input markets (provision of productivity- and quality-enhancing information, inputs and services to smallholder farmers). Without these economies of scale, achieving quality control standards and profitability in a smallholder production system would be almost impossible.
Component Two of the KDSC Program will strengthen smallholder business organizations (SBOs) that manage and invest in MBCs to supply ever increasing volumes of milk that meet regional or international quality standards while serving as "business hubs" for the provision of productivity-enhancing, quality-enhancing and environmentally sustainable information, inputs, technologies and services.
SBOs are typically farmer-owned cooperatives, companies, associations and/or self-help groups that own and/or operate one or more MBCs. Due to their grassroots, participatory nature, SBOs present a tremendous opportunity for increasing the participation of women, youth and People Living with HIV/AIDS (PLWHA) in dairy-related activities.
