School milk programme School milk programme

KenyaKenya

Presented at the 1Presented at the 1stst African School Milk Conference African School Milk Conference

Uganda Uganda –– KampalaKampala

28/9/200528/9/2005

BY: DR. PHILIP K. CHERONO BY: DR. PHILIP K. CHERONO

KENYA DAIRY BOARDKENYA DAIRY BOARD

Industry OverviewIndustry Overview

The Kenyan dairy industry;The Kenyan dairy industry;

•• Contributes about 3% of KenyaContributes about 3% of Kenya’’s Gross s Gross Domestic Product (GDP) Domestic Product (GDP)

•• Supports over 1 million small holder dairy Supports over 1 million small holder dairy householdshouseholds

•• Generates 365,000 waged jobs and over Generates 365,000 waged jobs and over 500,000 jobs in support services500,000 jobs in support services

Milk productionMilk production

•• Annual milk production is estimated at Annual milk production is estimated at

3.12 b litres (3.12 b litres (2003 2003 MoL&FDMoL&FD ReportsReports) with 1.8 b ) with 1.8 b

litres being marketed. litres being marketed.

•• The production is concentrated in the Rift The production is concentrated in the Rift

valley, Central and Eastern provincesvalley, Central and Eastern provinces

•• Cattle population is estimated at 11.5 Cattle population is estimated at 11.5

million heads distributed as follows:million heads distributed as follows:�� Dairy 3.3 millionDairy 3.3 million

�� Beef 8.2 million (mainlyBeef 8.2 million (mainly zebu)zebu)

•• Average production is 1500lts/per cow/yrAverage production is 1500lts/per cow/yr

Total Farm Production

Marketed

58%

Home Retention

42%

Co-ops/

Groups

(8%)

Small

/large

traders

(7%)

Shops/

Kiosks/

(6%)

Individual

buyer/

neighbour

(24%) Home

Consumption

(33%)

Calf & others

consumption

& losses

(9%)

Marketed Consumption Household Consumption and

Calf Consumption

Total Consumption

Processors

Wholesaler/

Retailer

44%% 14%

2%

Performance of Dairy IndustryPerformance of Dairy Industry

VOLUME OF PROCESSED MILK (1986- 2004)

050

100150200250300350400450

1986

1989

1991

1994

1997

1999

2002

2004

YEARS

MIL

LIO

N ( L

TS

)

VOLUME OF PROCESSED MILK

Projected Milk Supply - Demand (2004 - 2014)

0

1000

2000

3000

4000

5000

6000

2004 2006 2008 2010 2012 2014

Years

Mil

lio

n l

itre

s

Projected milk production (Million litres)

Projected consumption

The formal sectorThe formal sector

Consists of;Consists of;

•• 33 active processors33 active processors

•• 80 mini dairies (max 5000 80 mini dairies (max 5000 ltslts per per

day)day)

•• 55 cottage industries55 cottage industries

•• 810 milk bars810 milk bars

The formal SectorThe formal Sector

Processing Capacity:Processing Capacity:

•• Products made are Products made are –– fresh milk , fresh milk , malamala, ,

yoghurt, ice cream, cheese, long life fresh yoghurt, ice cream, cheese, long life fresh

milk, powder milk, butter, gheemilk, powder milk, butter, ghee

•• Installed processing capacity Installed processing capacity -- 2.9 million 2.9 million

ltslts per day per day

•• Presently processing about 1 Million Presently processing about 1 Million ltslts

per dayper day

NyayoNyayo school milk programmeschool milk programme

BackgroundBackground

•• Introduced by former president Introduced by former president MoiMoi in in

19801980

•• Boost the health and diet of the childrenBoost the health and diet of the children

•• Programme fully funded by the Programme fully funded by the

governmentgovernment

•• Rolled through out the countryRolled through out the country

TargetTarget

•• Primary Primary school school childrenchildren

•• Ages 5 Ages 5 ––13 13 yrsyrs

•• Total children Total children were 4.3 mwere 4.3 m

•• Over 11,000 Over 11,000 Schools Schools

StrategyStrategy

•• Kenya coKenya co--operative Creameries was a monopoly operative Creameries was a monopoly in milk processing and distribution at the timein milk processing and distribution at the time

•• K.C.C processed and packed the school milkK.C.C processed and packed the school milk

•• 80% of the milk was 200 ml long life targeting 80% of the milk was 200 ml long life targeting schools far from the K.C.C plants.schools far from the K.C.C plants.

•• 20% was pasteurised 200 ml fresh milk for the 20% was pasteurised 200 ml fresh milk for the schools in urban areasschools in urban areas

•• K.C.C carried out a three month training on milk K.C.C carried out a three month training on milk handling to the education officershandling to the education officers

LogisticsLogistics•• Distribution of fresh milk Distribution of fresh milk

was done by K.C.Cwas done by K.C.C

•• Long life milk was delivered Long life milk was delivered to the to the DEODEO’’ss storesstores

•• The education office then The education office then delivered it to the schoolsdelivered it to the schools

•• Distribution done twice a Distribution done twice a weekweek

•• Estimated milk requirement Estimated milk requirement was 61.8 M was 61.8 M ltslts/ Year/ Year

•• Design of packet was Design of packet was different from commercialdifferent from commercial

Benefits realisedBenefits realised

•• Guaranteed market for milk Guaranteed market for milk -- dairy farmers and dairy dairy farmers and dairy herd increased raising milk production/ household herd increased raising milk production/ household incomes.incomes.

•• K.C.C. expanded facilities ; cooling and processing plantsK.C.C. expanded facilities ; cooling and processing plants

•• Long life milk product plants were expandedLong life milk product plants were expanded(The capacity still exist in Kenya to date)(The capacity still exist in Kenya to date)

•• SchoolSchool attendance and general health of the children attendance and general health of the children improved according to teachers.improved according to teachers.

•• Instituted a culture of milk drinking hence the high per Instituted a culture of milk drinking hence the high per capita consumption in Kenyacapita consumption in Kenya

Programme ChallengesProgramme Challenges

The programme became too costly/ unsustainable The programme became too costly/ unsustainable for the Govt especially for the long life milk as a for the Govt especially for the long life milk as a result of;result of;

•• Poor road infrastructurePoor road infrastructure-- high transport costhigh transport cost

•• Heavy losses through spoilage Heavy losses through spoilage -- lack of lack of experience/ knowledge on milk handling at the experience/ knowledge on milk handling at the DEO goDEO go--downs.downs.

•• Lack of capacity in terms of personnel to handle Lack of capacity in terms of personnel to handle the huge stocks of milk at the the huge stocks of milk at the MoEMoE..

•• Poor accountability Poor accountability -- MoEMoE

Important lessonsImportant lessons

•• ‘‘FreeFree’’ is not sustainable in the long termis not sustainable in the long term

•• Launching of a country wide programme may Launching of a country wide programme may

pose management challenges pose management challenges -- start on small start on small

scale, monitor and upscale as appropriatelyscale, monitor and upscale as appropriately

•• Need to educate the handlers (teachers etc) on Need to educate the handlers (teachers etc) on

proper milk handlingproper milk handling

•• Preferably processors should deliver the milk to Preferably processors should deliver the milk to

the schoolsthe schools

Proposed school milk programmeProposed school milk programme

•• Target group is the primary and preTarget group is the primary and pre--

primary school going childrenprimary school going children

•• Both private and public schoolsBoth private and public schools

•• Kenya dairy Board to lead programme Kenya dairy Board to lead programme --

committee to involve Key stakeholders committee to involve Key stakeholders ––

public institutions, producers, Processors, public institutions, producers, Processors,

Input suppliers, development partners.Input suppliers, development partners.

Proposed StrategyProposed Strategy

•• Produce lowly priced products by negotiating Produce lowly priced products by negotiating

with Key players to cut down costs. with Key players to cut down costs.

•• Develop an easily identifiable school milk Develop an easily identifiable school milk

packaging design for distribution to schools only packaging design for distribution to schools only

•• Each packet to have a logo of the processor who Each packet to have a logo of the processor who

processed and packed the product and other processed and packed the product and other

traceability recordstraceability records

Strategy contStrategy cont’’

•• Start a pilot programme for interested private and public Start a pilot programme for interested private and public schoolsschools

•• Private schools Private schools -- the cost to be incorporated in the the cost to be incorporated in the school fees structureschool fees structure

•• Public Schools Public Schools –– To involve the PTA in the programme To involve the PTA in the programme management.management.

•• Parents to meet the cost of the reduced product priceParents to meet the cost of the reduced product price

•• Seek complementation in product delivery to schools Seek complementation in product delivery to schools with an already existing school feeding programme.with an already existing school feeding programme.

•• Seek support for very needy schools that cannot affordSeek support for very needy schools that cannot afford

ConclusionConclusion

•• A school milk programme has both A school milk programme has both

economic and health benefitseconomic and health benefits

•• The benefits can only be realised with The benefits can only be realised with

proper planning before start of proper planning before start of

programme programme