News and updates on research on livestock value chains by the International Livestock Research Institute and partners

Friday, April 01, 2011

Impact case study on Smallholder Dairy Project features on DFID R4D portal

The Research4Development (R4D) portal of the UK Department for International Development (DFID) features an impact case study on the Kenya Smallholder Dairy Project, a research and development project collaboratively undertaken by the Ministry of Livestock Development, the Kenya Agricultural Research Institute (KARI) and the International Livestock Research Institute (ILRI) from 1997 to 2005.

R4D is the portal to DFID centrally funded research. It provides up-to-date information on DFID's current research portfolio as well as information about the research activities prior to 2008 in Rural Livelihoods, Health, Social Sciences, Education, and Infrastructure and Urban Development.

Below is the summary of the case study report, Policy change: Milking the benefits for small-scale vendors.

"Evidence-based research by the DFID-funded Smallholder Dairy Project (SDP) revealed the economic and nutritional significance of the informal milk sector and the potential for improved handling and hygiene practices, which would ensure quality and safety of milk from farm to cup. The second phase of the project (2002-2005) involved more active engagement with policymakers to raise awareness of its research findings on the informal milk market, its importance for livelihoods, and to allay public health concerns while simultaneously working with milk vendors to pilot training and certification approaches that effectively improve quality. Updated dairy industry regulations, designed to streamline licence application processes for smallscale milk vendors, were issued by the Ministry of Livestock and Fisheries Development (MoLFD) in September 2004.

"Total economy-wide gross benefits accruing to the sector from the policy change are estimated at US$33 million per annum, as a result of reduced transaction costs and less milk spoilage due to improved practices by newly-trained vendors. More than half of the benefits accrue to producers (increased incomes) and consumers (lower milk prices). Licensing of smallscale milk traders by the Kenya Dairy Board (KDB) has also led to formation of groups under the umbrella of the Kenya Smallscale Milk Traders Association. A further legacy of the project is the establishment of self-employed business development service providers, who are paid by dairy companies and traders to provide training on milk handling and business development. The lessons learnt from the SDP are being applied across East Africa, particularly Tanzania and Uganda, and also in India."

Download the full version of the case study (PDF)

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