Camel Milk Value Chain Development- SNV and Partners experience

1. Camel Milk Value Chain Development- SNV and Partners experience Agriculture Sector Working Group Meeting, By Morgan Siloma, Economic Development Advisor

2. What will be covered! • Introduction to SNV • Understanding the Camel Milk Value Chain • Challenges faced by the CMVC • Tapping the potential of the Chain • What is happening? Who is doing what? • Preliminary results • Future investments Title of presentation (change in master layout)

3. SNV-Who are we? • A Dutch based development organization, working in 33 developing countries worldwide. Mission • ‘SNV is dedicated to a society where all people enjoy the freedom to pursue their own development. We contribute to this by strengthening the capacity of local actors.’ Goal • ‘To support local actors to strengthen their performance in effectively realising poverty reduction and good governance’ Title of presentation (change in master layout)

4. SNV contd • Eliminating poverty is also about strengthening peoples ability to provide solutions to their problems and make informed choices( empowerment). • We align our strategy to local intentions to catalyze local capacities thro: • Supply of advisory services to Gov, CSO, Private sector • Building capacities of Local Capacity builders to sustain the capacity services • Catalyzing Local mechanisms for support to capacity development( LCDF) • Developing and brokering knowledge relevant for poverty reduction • Facilitating international level advocacy Title of presentation (change in master layout)

5. SNV Contd SNV capacity development services aim at improving the lives and livelihoods of disadvantaged men and women thro: • Economic development aimed at increasing production, incomes and employment (VCD, Agric and Livestock) • Access to basic services aimed at increasing efficiency, effectiveness, accountability and responsiveness in the delivery of basic services( WaSH, EDUC, RE) Title of presentation (change in master layout)

6. SNV and Dry lands • SNV has a long history in ASALs (significance in land mass, over 75%, poverty prevalence, 70% of popn live below poverty level) • SNV implemented several projects then (PADEP/SARDEP, PEDDEP) and now capacity development in Basic Services and Economic Development • Livestock as key economic resource- up to 71% of meat from ASALs ( also 100% of camel population in ASAL) • ASAL accounts for all camel milk production in Kenya- SNV VCA study(2008) puts camel milk industry value at Ksh 8 billion Title of presentation (change in master layout)

7. The Camel Milk VC • 19 million camels in the World, 15 million in Africa; 4 million in Asia • Kenya 5th camel herd in the world - 1.06 million • Camel milk production in 2007; 340 million litres valued at about Kshs 8 billion (100Million USD) • Isiolo - 7th in camel pop in Kenya; 40,460 in 2007; 12% of camel milk reaches terminal market i.e. 5,000 lts Title of presentation (change in master layout)

8. unavailability of appropriate processing methods Lack of market orientation among camel keepers Inefficient transport and storage Challenges for commercialization Poor hygienic practices Lack of standards and quality measures Public health risks Title of presentation (change in master layout)

9. Synopsis of Camel milk Supply chain Camel milk Producer Anolei Women group Isiolo and its environs Wholesaler Title of presentation (change in master layout) Retailers Consumers Nairobi

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11. Camel Milk characteristics High Camel milk price in the informal milk market Superior keeping quality (shelf life) - allows it to be supplied to distant urban markets. Medicinal qualities of camel milk- on diabeties, autism; immunity, stomach cleansing; infectious diseases e.g. tuberculosis Unhygienic milk handling practices along the chain result into spoilage of milk and lower income. Traditional consumers who don’t mind the quality Title of presentation (change in master layout)

12. Uniqueness/importance of camel milk chain Food security -“second god” Medicinal value: Juvenile diabetes; autism The chain is highly informal; trading between family; clan relationships Trading in raw camel milk The chain is dominated by women

13. Isiolo camel milk Value Chain Title of presentation (change in master layout)

14. Tapping the Camel Milk potential! • Camel milk hygiene – trainings, investment in RE cooling systems, transport • Camel milk health and production – feeds, vaccines • Enterprise development – turning groups into enterprises • Marketing – tapping into the BOP, demand?, nutrition value of camel milk, Kenya CMVC analysis • Knowledge development – Research and sharing what is working, inform Policy Title of presentation (change in master layout)

15. SNV and Camel milk • SNV started off with VCA of camel milk in 2008 UNIQUE SELLING POINT: Its Medicinal Value! key issues highlighted in the VC analysis: • Fluctuating/seasonality in milk productivity • Low hygiene practices and quality of milk • Poor business orientation of camel producers • Limited market development • Limited infrastructure and almost absence of policy space. • Limited collaboration between chain actors SNV’s Focus has been on enhancing efficiency in the supply and marketing of the camel milk value chain. Title of presentation (change in master layout)

16. Camel milk strategies • Commercialization of the camel milk chain i.e. organize traders groups into a cooperative; linking with private sector (processor; financial entities etc) • Enterprise development i.e. strengthening Anolei cooperative manage business entity; enhance efficiency of the chain e.g. bulking; support to management of the camel milk bar

17. What is happening? There are pilots in various counties e.g. • KCA –Strategic plan - national, producer group strengtheing, identifying new markets etc • Camel milk Value chain - Isiolo • CARE, KLMC etc in Garrissa • SNV, VSG-S, PACIDA, FHK in Isiolo, Marsabit • Research i.e. KARI- innovative transportation, VSF-Suisse – hygiene along the chain • Next move - CONSOLIDATION Title of presentation (change in master layout)

18. Market trends in the chain • Supply 3,000-6,000lts i.e. about 12-15% of prod; new - 1,000 to 2000lts coming from south – Kajiado; creates competition • Price: Average 60-80 ksh per lt • Women “engage in trading not production” 3 market segments: a) Traditional market – Anolei cooperative b) High-end – Vital camel (500lts) c) Emerging segment (BOP) – ; Halleeb, UCP

20. Preliminary Results • Camel milk recognized through government policy • Hygiene risk analysis along the chain (KARI, VSF-SWISS) • Develop training program on hygiene practices, testing of quality and grading system along supply lines to end market (with VSF Swiss, FAO) • Formation of a women camel milk cooperative • Increased supply of camel milk e.g. 5,000-6,000lts supplied from Isiolo, milk from Kajiado • A camel milk bar opened in Isiolo • New small scale processors – Vital, Haleeb, UCP • Use of aluminium cans – 50% adoption Title of presentation (change in master layout)

21. Future investments • Government – MOLD • FAO ICDRR – SNV, VSF-Suisse • EU KRDP – SNV, KLMC, ILRI ???? • EAAP – KCA • USAID – CARE, CNFA KLMC Title of presentation (change in master layout)

22. Key lessons and challenges • Highly socially organized value chain, need time to find entry points • There is overwhelming potential for incomes- appropriate business models, structural challenges of pastoral production systems • Need to collaborate with other partners to add value (High interest) • Requires time investments/ consistency/nurturing to understand VC, build relations and reap benefits. Title of presentation (change in master layout)

23. Future vision • Processing of camel milk Brookside dairy camel milk partnership Title of presentation (change in master layout)

24. Thank You!!! Title of presentation (change in master layout)