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By, MR. Machira Gichohi, Managing Director, Kenya Dairy Board

C OUNTRY REPORT ON THE DAIRY INDUSTRY – KENYA PRESENTED AT THE ESADA CONFERENCE, LUSAKA, ZAMBIA. 16 TH MAY, 2007. By, MR. Machira Gichohi, Managing Director, Kenya Dairy Board. CONTENTS. Kenya Dairy Board – An overview Kenyan dairy industry – An overview Milk production status

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By, MR. Machira Gichohi, Managing Director, Kenya Dairy Board

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  1. COUNTRY REPORT ON THE DAIRY INDUSTRY – KENYAPRESENTED AT THE ESADA CONFERENCE, LUSAKA, ZAMBIA.16TH MAY, 2007 By, MR. Machira Gichohi, Managing Director, Kenya Dairy Board

  2. CONTENTS • Kenya Dairy Board – An overview • Kenyan dairy industry – An overview • Milk production status • Milk processing status • Traceability and safety issues in the industry • Marketing initiatives • Investment opportunities • Conclusion

  3. KENYA DAIRY BOARD – AN OVERVIEW • Corporate history A statutory body established in 1958 by an Act of Parliament, the Dairy Industry Act, cap 336, Laws of Kenya • Mandate Regulate, Develop and Promote the dairy industry in Kenya

  4. Vision To be the leader in regulating and promoting a sustainable dairy industry that contributes to income generation and good health. • Mission To facilitate stakeholders’ activities towards a sustainable dairy industry that provides quality and affordable milk and milk products

  5. KENYAN DAIRY INDUSTRY – AN OVERVIEW • Contributes about 3.8% to the country’s Gross Domestic Product (GDP) • Per capita consumption of milk estimated at 100 litres • Provides income and nutrition to over 1 million smallholder dairy households • Generates 500,000 waged jobs and over 700,000 jobs in the support service industry

  6. MILK PRODUCTION STATUS • Current production (2006) estimated at 3.8 billion litres • Cattle population is estimated at 11.5 million heads distributed as follows: • Dairy 3.3 million • Beef 8.2 million (mainly zebu) • Smallholder milk producers are organized into cooperatives and self help groups

  7. Milk producers are represented by a national organization Kenya Dairy Producers Organization (KENDAPO) • The projections on milk production versus consumption (2004 – 2014) is as shown;

  8. MILK PROCESSING STATUS • There are 34 active processors • Installed processing capacity – 2.9 million litres per day • Milk processed in 2006 – 362 million Ltrs • A wide range of products are processed – pasteurized milk, fermented products, long life milk, cream, cheese, butter, milk powder (full cream and skimmed) and ice-cream among others • The industry has embraced quality and safety management systems such as ISO, HACCP, GAP & GMP

  9. Volumes of processed milk 2001 - 2006

  10. TRACEABILITY AND SAFETY ISSUES IN THE INDUSTRY • The industry’s vision is to produce world class product’s that meet international standards • Measures undertaken to ensure quality and safety across the dairy value chain include; • Registration of milk producers • Regular inspections of dairy enterprises • Implementation of HACCP/ISO/GAP/GMP • Medical certification of milk handlers including milkers • Regular review of Kenyan standards on raw milk • Bulking and cooling of raw milk • Development and implementation of a Code of practice on the production, handling and distribution of milk and milk products

  11. Control of diseases (creation of disease free zones) and proper management of herd health programmes • Well established dairy training institutions to ensure continuous production of highly qualified staff to serve the industry

  12. MARKETING INITIATIVES • To meet the needs and taste of different market segments the following initiatives are being undertaken; • Generic campaigns to promote consumption • Publicity/PR campaigns • Introduction of a sustainable school milk program • Development of pasteurized milk dispensers • Training, certification and branding of small and medium scale milk premises • Brand promotions

  13. INVESTMENT OPPORTUNITIES IN DAIRY • Investment opportunities in the dairy industry include; • Processing and value addition • Manufacture and distribution of dairy equipments • Milk production • Consultancy/training services • Animal feeds processing and other input supply • Distribution/marketing/export

  14. CONCLUSION The Dairy industry in Kenya has become a vibrant sector with a wide range of high quality and safe dairy products. We therefore encourage other countries to consider investing in our industry and also import our dairy products - - - - - - - - - For further enquiries, contact; The Managing Director Kenya Dairy Board P.O. Box 30406-00100, NAIROBI Tel. (+254) 020- 310559/341302 E-mail – info@kdb.co.ke Website – www.kdb.co.ke

  15. Thank you

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