USAID Kenya Dairy Sector Competitiveness Program Quarterly Progress Report January 2012 - March 2012

The program is in its fourth contract life (CLIN) and is in the final quarter of its implementation period, with only one calendar year remaining. The program's activities are focused on addressing sector challenges, constraints, and stakeholder concerns in all milksheds. Capacity building for producers is a key component of the program, with a focus on enabling them to venture into other marketing avenues that will improve the uptake of their milk. This has been occasioned by a reduction in milk purchase by processors, who have also reduced the prices of milk. As a result, Dairy Traders Associations (DTAs) have continued to offer essential services to farmers in the TransNzoia milkshed by buying their milk at a price of 35-50 shillings per liter, which is better than the prices offered by processors. In the Western region, milk prices were high, ranging from 45-70 shillings per liter, highlighting the need to formalize the market to improve farmers' income. The Wamuini group continued to market milk through their milk bars and were selling at 45 shillings per liter. To mop up excess milk in the TransNzoia milkshed, the Chesoi cooperative society in Marakwet East worked on producing good quality Mala and selling at their milk bar, 60 shillings per liter, improving farmers' income. The Naitiri cooperative, located in a milk deficit area, was selling their evening and some morning milk locally at a net price of 30 shillings, resulting in a profit of 2 shillings above the cost of production. The program has also been linking Service Providers (SPs) with farmers and tracking how they initiate demand for their services without fully involving project staff. This is designed to evaluate the post-project implementation phase and possible adoption of program activities in the future after the program's exit. The program has continued to build the capacity of producers to venture into other marketing avenues that will improve the uptake of their milk. This has been occasioned by a reduction in milk purchase by processors, who have also reduced the prices of milk. The program has also been linking SPs with farmers and tracking how they initiate demand for their services without fully involving project staff. The program's activities have resulted in significant achievements, including the establishment of milk bars and the sale of milk at improved prices. The program has also been working to formalize the market, which will improve farmers' income. The program's exit strategy is focused on sustainability measures, including the establishment of mechanisms that will result in the continuity of the program after its exit. The program has been working to address sector challenges, constraints, and stakeholder concerns in all milksheds. The program's activities have been focused on building the capacity of producers to venture into other marketing avenues that will improve the uptake of their milk. The program has also been working to formalize the market, which will improve farmers' income. The program's performance data indicates significant achievements, including the establishment of milk bars and the sale of milk at improved prices. The program's exit strategy is focused on sustainability measures, including the establishment of mechanisms that will result in the continuity of the program after its exit. The program has been working to address sector challenges, constraints, and stakeholder concerns in all milksheds. The program's activities have been focused on building the capacity of producers to venture into other marketing avenues that will improve the uptake of their milk. The program has also been working to formalize the market, which will improve farmers' income. The program's exit strategy is focused on sustainability measures, including the establishment of mechanisms that will result in the continuity of the program after its exit.