Boy in smallholder Kenyan dairy household drinking milk (credit: ILRI).

‘The Kenya dairy industry is making a turnover of over Ksh.17 billion (US$230 million), following a policy change six years ago.

‘A new report by the International Livestock Research Institute (ILRI) suggests that the liberalization of informal milk markets has producers, vendors and consumers reaping large from an improved value chain.

‘From farm to cup, Nairobi recorded the highest turnover in demand and supply for milk since the Kenya Dairy Policy was amended in September 2004.

For dairy farmers and traders in Nakuru, Thika and Kiambu towns, however, turnover was three fold from 2004 until 2007, which was the period studied by the report.

‘“Allowing licensed small-scale milk vendors to operate leads to increased milk supply to the retail market and continual increase in the number of small-scale milk vendors acquiring licenses to run milk bars to meet the increased demand for milk,” says the document.

‘In a sharp contrast with other towns under the study, Nairobi milk brokers continue to hold the biggest slice of the milk supply chain, followed by milk bar operators and transporters. . . .

‘The revised Dairy Policy paved way for the training of milk handlers on quality control, and made it easy for producers and vendors to acquire operation licences, among others.

‘. . . Nestle’s Regional head, Pierre Trouilhat, is hopeful that Kenya’s dairy sector has a place in the Common Market for East and Central Africa (COMESA), through the company’s established value chain.

‘Nestle is counting on a partnership that the equatorial regional branch entered with the East Africa Dairy Development (EADD) project in April, as a bridge through which the company will be able to purchase powdered milk from Kenya.

‘“The ultimate aim will be to produce cream milk powder enabling Nestle to export milk products to other COMESA countries and thus boost both availability and affordability in equatorial Africa,” said Mr. Trouilhat.

‘While there are more than 60,000 small-scale dairy farmers in Kenya, the dairy sector supports some 800,000 households, with over 350,000 Kenyans being employed directly and indirectly by the industry. . . .’

Read the whole news article at The East African: Kenya’s dairy sector worth $230million–study, 15 October 2010.