USAID and Land O'Lakes Launch Kenya Dairy Sector Competitiveness Program

Land O’Lakes International Development and the U.S. Agency for International Development (USAID) have launched a five-year Kenya Dairy Sector Competitiveness Program (KDSCP) to improve Kenya's dairy industry.

USAID Mission Director Erna Kerst and the Permanent Secretary, Ministry of Livestock Development (PS MOLD) Patrick Khaemba presided over the occasion of KDSCP’s launch on October 29, 2008. Both emphasized the need for increased investment in the agriculture sector as a means of improving the livelihood of rural households. In his speech, the Permanent Secretary observed that the majority of rural households own some form of livestock, which could be the total of their productive assets. He also noted that the dairy industry is currently paying for a lack of investment over the last 20 years and concluded that “The KDSCP program gives the Ministry of Livestock Development a big boost.”

Below: Permanent Secretary, Ministry of Livestock Development Khaemba (center) and
USAID Mission Director Kerst shake hands at the KDSCP Launch Ceremony.

The event, attended by the major dairy industry stakeholders in the country, doubled as an action planning occasion. Stakeholders identified the main challenges facing the industry and proposed solutions to the problems. The stakeholders’ observations closely mirror the program objectives and action areas. Major challenges include the following:

  • Production
    Poor animal nutrition; lack of feed conservation at farm level; poor-quality feeds; poor animal genetics; lack of support services or business development services; and smallholder inefficiency--farming for subsistence, not as a business.
  • Milk Bulking Centers
    Inadequate infrastructure: roads, electricity, water, cooling facilities (milk chillers); lack of economically viable groups; poor governance of farmer groups; lack of business orientation in farmer groups; lack of quality assurance systems; lack of graded systems in milk purchasing; and inadequate technical capacity.
  • Policy and Institutions
    Lack of a long-term vision for the dairy sector; limited accurate data on the sector; outdated legislation; and poor animal disease control.

The event culminated with stakeholders committing to continually provide input into program activities. The PS MOLD reiterated government’s commitment to support all players in the dairy industry, including KDSCP.

Detailed information on KDSCP activities, such as reports of commissioned studies, planned activities, and grants, may be found at the program Web site at www.kdairyscp.co.ke.