Starting 2007 in Kenya, Uganda and Rwanda, the project is a ten-year plan aimed at improving the lives of around 179,000 dairy farming families, representing approximately one million people in total. In financial terms, the project's target is to bring an average 240% increase in net dairy income ($ per day) per household by year 10.
The East Africa Dairy Development is funded by the Bill and Melinda Gates Foundation with varius partners. Heifer International is the lead partner, ABS - for breeding and genetics, ICRAF - for feed and fodder, TechnoServe - business and marketing, ILRI - for research, and private sector partners, including Nestlé and Tetrapak.
Nestlé Kenya Ltd participates in this project with two objectives in mind: to put our expertise at the service of the dairy community, and to establish a sustainable long-term procurement line of milk powder. Carefully planned, the EADD project articulates several objectives and operational steps that will progressively improve the production capacity and quality standards in the sector across the value chain.
Nestlé Kenya is contributing to the project by ensuring that quality standards are properly set up and that stringent quality control processes are enacted across the entire value chain.
To apply this expertise in a sustainable manner, Nestlé Kenya is offering assistance to develop a model milk village in Kabiyet (Rift Valley), an experience to be duplicated by several farming communities in Kenya, Uganda and Rwanda.
Based on the Nestlé Milk District Model, already successful in India and Pakistan and many other countries in the world, the Kabiyet Milk Village project involves all actors in the dairy chain: dairy farmers, milk collection points, transporters, chilling plants and processing plants. Nestlé is intervening across the entire value chain to ensure that adequate quality standards are applied, essential for an optimal milk quality..
At farm level, a Nestlé agronomist based in Kabiyet, is conducting both on-farm and classroom training on animal welfare, breeding, fodder management and toxin management for dairy feeds amongst others. At the chilling plant, Nestlé is developing Standard Operating Procedures for best processing practices.
The location of this Nestlé model milk village in East Africa was selected due to its impressive potential for growth: when the Kabiyet Dairies chilling plant was set up in June 2009, the daily supply of milk was 1,600 litres.
With better payment terms and a sophisticated milk reception method, the supply started rising sharply, to reach 35,000 litres per day by end of 2012. There are currently 7,000 commercial milk farmers supplying the Kabiyet dairies.Previously, most of them used their milk for their own consumption or sold to hawkers at a discounted price.
Through this effort towards ensuring milk quality and food safety across the dairy value chain, Nestlé Kenya has shown how the Creating Shared Value concept really works. Nestlé Kenya will soon obtain milk powder from within the region, hence decreasing its dependency on imports, while the dairy value chain stakeholders acquire new skills and see an increase of their revenue.
In Kabiyet, Nestlé Kenya is also involved in some community development projects - women entrepreneurship to supplement the income from dairy farming, provision of clean water drinking facility and biogas project.
The Biogas Project in Kenya
Nestlé entered into a partnership with KENFAP to provide farmers
households with biogas through recruiting at farmers in the Nestlé Kenya
Ltd CSV Dairy project areas, who will install biogas on their farms for cooking
farmers will be required to contribute the initial amount of Ksh. 35,000/-
before KENFAP releases the Ksh. 25,000/- subsidy towards the construction of
biogas plants. The subsidy will be used for procurement of materials, fittings,
fixtures and equipments which support construction and commissioning of biogas
infrastructure. The Farmer will be required to meet the cost of installation of
the biogas plant through purchase of material, implements or initial
construction work worth Kshs. 35,000/-. Nestlé will facilitate the construction
of biogas plants for some vulnerable groups.