123-20203
Londiani.
Old CDF offices
There are many players in the dairy sector: those offering services and inputs; industry facilitators and development partners; and the users of services/inputs. Smallholder dairy farmers dominate the industry at the production level. There are more than 1 million smallholder dairy farmers, according to surveys done by the Smallholder Dairy (Research and Development) Project (SDP), contributing more than 70 percent of gross marketed production from farms. In general, smallholders each have 3 to 5 acres (1.2 to 2.0 ha) of land – although some have slightly more than 20 acres (8 ha) and others less than 0.5 acre (0.2 ha) – and about two to five head of cattle yielding about 5 kg of milk per cow per day. Milk sales are low, at less than 10 kg per day. The use of inputs is low, but varies depending on community traditions and the level of market orientation. There are about 30 licensed milk processors, two of which process more than 60 percent of the total processed milk.
Other licensed milk traders include producers, mini dairies, cottage industries and cooling plants, whose number has been increasing and is now over 1 500. Processors handle more than 80 percent of the total milk and dairy products marketed through the licensed (formal) market channel. Other actors in dairy marketing include farmers’ organizations such as cooperative societies and farmers’ groups. Cooperatives (Table 1) and farmers’ groups handle only about 40 percent of marketed milk production and about 20 percent of total milk (Muriuki, 2003). Other players in milk marketing include informal traders, distributors and retailers. The existence of informal trade results from a combination of the formal system’s failure or inefficiency, consumer habits/preferences, and price differences between raw and processed milk. Input and service providers include agro-vet and other shops, breeding service providers, suppliers of breeding stock, dairy recording and stud book service providers, veterinary service providers, and extension and advisory service providers.
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