Sustainable growth of the Kenyan dairy sector : a quick scan of robustness, reliability and resilience

Abstract

. Sustainable growth of the Kenyan dairy sector; A quick scan of robustness, reliability and resilience. Report 3R Kenya/WLR 979. AbstractThis report provides an overview of how the Kenyan dairy sector performs in three analytical domains: the robustness of the supply chains, the reliability of institutional governance and the resilience of the innovation system. Analysis is by literature review, stakeholder interviews and a validation workshop guided by a SWOT framework to identify strengths, weaknesses, opportunities and threats. The findings inform the existing opportunities and challenges that potentially impede growth in the sector.The report is a first step towards documenting and sharing insights that support the move towards a more Robust, Reliable and Resilient (3R) dairy sector. The findings and recommendations presented will guide policy engagement and action in the transition of Dutch government bilateral engagement in Kenya from development aid-support to a trade approach in the agricultural sector, with a focus on partnering opportunities to drive competitive market-oriented dairy sector development that attracts investments. Work in progressThis working paper aims to identify how the dairy sector in Kenya performs in terms of the robustness of supply chain, reliability of institutional governance and resilience of innovation systems, by analysing the opportunities and constraints with respect to the 3Rs. The working paper entails the first output of the 3R project and provides a first stepping stone in project implementation. Therefore this is work in progress and the authors welcome any feedback from stakeholders on this working paper. DownloadThis working paper can be downloaded for free at http://dx

Sustainable intensification pathways for dairy farming in Kenya : A case study for PROIntensAfrica WP2, Deliverable 2.3

“…The analysis in this report builds on a broader sector scan by the 3R Kenya project on sustainable development potential of the Kenyan dairy sector (Rademaker et al, 2016a), that looked at the peopleplanet-profit sustainability of the dairy value chain (DVC), institutional governance, and innovation support system.…”

“…Feedback from the workshop was used to complement the draft report (which combined results from the literature review and interviews), with the report of (Rademaker et al, 2016a) as result.…”

“…interview 4) it appears that loans from commercial banks are mainly suitable for medium-to large-scale farmers because of stringent collateral requirements, while smallholders mostly rely on credit from DVC partners and SACCOs which have favourable repayment terms. A more thorough analysis of access to and source of credits is available in (Rademaker et al, 2016a), including opportunities and challenges for credit from commercial banks, mechanisms for value chain financing, micro-financing and government-affiliated funds for vulnerable groups.…”

“…In practice, many DFCSs lack the scale and the management capacity to succeed in processing. DFCSs can successfully invest in processing at union (secondary cooperative Rademaker et al, 2016a). From the interview with NMCS, it appeared that the two barriers withholding them from moving into processing are affordable credit to invest in a processing plant and the dominance of a few processors in the retail market, making it very difficult to penetrate that market with a new product (interview 9).…”

“…Institutional governance here refers to publicprivate cooperation, co-innovation and a public economic policy framework that supports private investment and enhances opportunities for (inter)national trade. This section summarizes the chapter on reliable institutional governance from (Rademaker et al, 2016a):…”