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30.05.2017

STRATEGIC SECTOR COOPERATION PROGRAMME – KENYA-FOOD

DAIRY SECTOR

PROPOSAL FOR FIELD ACTIVITIES IN NYANDARUA

“CLEAN MILK HUB”

1. INTRODUCTION

2. BACKGROUND AND OBJECTIVE

3. REVIEW OF RELEVANT REGULATION AND REGULATORY AGENCIES

4. RELEVANT STAKEHOLDERS FOR NYANDARUA ACTIVITIES

5. PROPOSAL FOR “CLEAN MILK HUB” IN NYANDARUA

6. SCC SUPPORTED ACTIVITIES AND INTERVENTIONS

7. TIME SCHEDULE AND TA RESOURCES NEEDED

8. NEXT STEP

9. OPTION FOR THE FUTURE INTERVENTIONS BY THE ROYAL DANISH EMBASSY

10. ANNEX

10.1. People and organisations met

10.2. Mission programme

10.3. Abbreviations and acronyms

10.4. References (1-5)

10.5. Memorandum of Understanding

1. INTRODUCTION

During the period from April 23 to May 5 an external consultant1 visited Kenya on a fact-finding mission

for the STRATEGIC SECTOR COOPERATION PROGRAMME – KENYA-FOOD/DAIRY SECTOR (SSC-Dairy) to

identify a plan for creation of a “Clean milk Hub” model in Nyandarua and outline the necessary activities

to be implemented by “Dairy without Borders” (DWB).

In the course of the mission the consultant held discussions with key stakeholders in the dairy value

chain both in the public and private sector and both at national level in Nairobi and at local level in

Nyandarua. A list of persons and organisations met is attached as annex 1. The consultant is grateful for

the stakeholders’ willingness to share their views, vision and constraints in frank discussions without

which it would have been difficult to produce this report. All activities in Kenya was implemented in close

collaboration with the Growth Counsellor, Henning Hoy Nygaard at the Royal Danish Embassy (RDE) in

Nairobi, who participated throughout the consultants mission in Kenya.

All views and recommendations in this report are those of the consultant and do not necessarily express

those of RDE or the people consulted while in Kenya.

1 Jørgen Henriksen, Consultant, dairy value chain specialist

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2. BACKGROUND AND OBJECTIVE

The overall thematic focus of the Strategic Sector Cooperation (SSC) Programme in Kenya is food safety,

improved quality, value addition and capacity building in the dairy and horticulture sector with emphasis

on control of residues and certain contaminants. Nyandarua county has been selected for field activities

and this report cover the preparation and design of the field activities in the dairy sector. Quality of raw

milk received at the dairy factory platform in Kenya is of poor hygienic quality as most milk cannot meet

the national standards of total bacterial count below 2,000,000 cfu/ml but still accepted into the

processing plant. Furthermore, there is high risk that the raw milk has been adulterated with water,

preservatives and other substances to hide poor quality and the adding of water to increase volume. Milk

is paid on volume with no respect to quality criteria, except for accepted or rejected. The major reasons

for the poor hygienic quality of raw milk are i) lack of cooling facilities on farm; ii) long transport from

farm to cooling or processing; iii) use of improper, un-cleanable containers for transport of milk; and iv)

ineffective organisation of milk collection from the thousands of smallholder dairy farmers. The dairy

sector in Kenya is as in many developing countries characteristic in that less than 20 % of milk marketed

has been through a processing plant. The large share of milk sold as unprocessed milk is a continuous

problem for the dairy industry, partly since it makes it difficult to control the quality of raw milk as milk

rejected because of low quality most likely will remain within the dairy value chain – now supplied to a

trader in the raw milk chain. For further details about the structure and constraints of the dairy sector in

Kenya and the problem of low hygienic quality of raw milk see the attached Danida report (Annex 4, ref.

1, 2007). Netherlands Development Organisation (SNV) has made a proposal for “Quality Based Milk

Payment Scheme” which is now under implementation as a pilot in collaboration with HAPPY COW (a

dairy company in Nakuru) in the second phase of “Kenya Market-Led Dairy Programme-II” funded by the

Netherlands Embassy in Nairobi (see attached reference 2 and 3 in Annex 4 for further details).

The objective of the SSC-dairy partnership in the dairy sector is to improve raw milk quality, safety of

dairy produce and ability to further process healthy food of raw milk received at the milk plant with

possibilities for increased export and trade. As part of the overall programme in the dairy sector, field

activities will be carried out as a small pilot project through establishment of a “Clean Milk Hub” model in

cooperation with selected dairy processing companies as partners in Nyandarua county.

3. REVIEW OF RELEVANT REGULATION AND REGULATORY AGENCIES

Royal Danish Embassy in Nairobi has recently (2016) prepared a Baseline Study on Food Safety in Dairy

and Plant Based Food Sector in Kenya (see reference 4). The main conclusions are that food safety and

quality management in Kenya is undermined by fragmented legislation, multiple institutions that are

inadequately harmonized and facilitated in terms of human, transport, equipment and other resources

and inadequately coordinated; and weaknesses in surveillance, monitoring and enforcement; and this

system leads to delays and increased cost of compliance and adds to the cost of doing business and

reduces the country’s competitiveness. In the dairy sector the multiple institutions involved in regulating

the sector include KDB, DVS, KEBS and DPH. Tests for aflatoxin in milk, residues from antibiotics, other

veterinary drugs and pesticides, and chemicals are not undertaken routinely. Among the reasons for

inadequate testing include resource constraints (such as skilled personnel, laboratories) and to some

extent inadequate awareness of the dangers of some of these contaminants by stakeholders such as

farmers, traders and consumers. There are many challenges related to quality, food safety, possibilities

for value addition and exports in the dairy sector such as: lack of knowledge and skills among farmers on

aflatoxin and other contaminants; weak milk traders’ association; KDB has inadequate staff capacity to

provide adequate supervision of the actors in the chain; and many small feed millers do not implement

the HACCP system in their operations; etc. On the other hand, opportunities in the dairy sector include:

capacity building of famers to check the quality of own feeds and testing of feeds made by small feed

millers and support with needed equipment to promote quality feed production; introduction of

inexpensive quality control measures through cooperatives or other organized groups of milk producers;

introduction of quality based payment system for milk; capacity building of the Dairy Traders Association

including preparation of a strategic plan; and working with various stakeholders in the implementation of

milk safety and quality standards in the milk value chain. The Table 1 below gives a short review of the

regulatory agencies involved in the dairy sector.

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Table 1: Regulatory bodies in dairy (from: Baseline Study on Food Safety in Dairy and Plant Based Food

Sector in Kenya (see reference 4)

Key Actors Role

National Government (through

Ministry of Health, Ministry of

Livestock)

National Policy Development Policy formulation and review;

Facilitate implementation of policies to create an enabling

environment for other stakeholders to operate; Provision of

extension and advisory services to other stakeholders;

Research and development; Funding of various projects.

County Government Facilitate implementation of policies to create an enabling

environment for other stakeholders to operate; Provision of

extension and advisory services to other stakeholders;

Research and development; Funding of various projects.

Coordination of dairy and veterinary activities at county level.

Department of Public Health of

the Ministry of Public Health

and Sanitation

Implementation of the Public Health Act Chapter 242 Laws of

Kenya,which provides for the protection of human health and

for the prevention of the spread of disease.

Kenya Agricultural and

Livestock Research

Organisation (KALRO)

Provision of dairy research services by Dairy Research Institute

(DRI)

Department of Veterinary

Services (DVS)

The DVS implements the Animal Diseases Act Chapter 364 to

check the spread of animal diseases and in liaison with port

Health officials at the port of entry, introduction of such

diseases from outside through imports of animals and dairy

products.

Kenya Dairy Board (KDB) KDB is responsible for policies, strategies and regulations

governing the quality of milk delivered to processors and

consumers.

Kenya Bureau of Standards

(KEBS)

Product standardization and certification

National Environmental

Management Authority (NEMA)

Environmental regulation, water extraction regulations

Pest Control Products Board

(PCPB)

Regulation of pesticide use and safe use standards

Most traders do not handle milk properly as they fail to adhere to health and safety regulations; for

example, many use plastic containers and not the recommended steel or aluminium (or food grade

plastic) containers. There is inadequate use of organoleptic and other quality tests in the milk chain

although boiling milk, which virtually all consumers do before drinking it, virtually eliminates risks

associated with bacterial contamination. Some traders add water to milk to increase the volumes they

sell; margarine to make the milk appear richer in butterfat, and/or use illegal additives such as formalin

to prolong the storage life of their raw milk. However, there is lack of hard data to show the extent of

these practices. For more details, see the attached reference 4 in Annex 4.

4. RELEVANT STAKEHOLDERS FOR THE NYANDARUA ACTIVITIES

The SSC-Dairy project had preselected Nyandarua county as host county for the field activities in both

dairy and horticultural sector. During the launching mission, the SSC-Dairy project assessed various

options for partners in the dairy value chain and it was decided to continue the process of partnership

development with two very different dairy companies: 1) Kinangop Dairy Limited in the southern part of

Nyandarua which is a dairy processing company owned by its cooperative members in MUKI Dairy

Cooperative. 2) Countryside Dairy Limited, a dairy processing company owned by a business

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entrepreneur and situated in Nyahururu, just North of the boundary of Nyandarua county in Laikipia

county, while they buy most of their milk from farmers in Nyandarua. More details about the dairy

companies below.

The Nyandarua county government is an important stakeholder in the dairy value chain and is planning

investments in milk bulking and cooling tanks as part of a general Kenya government programme.

Furthermore, the Nyandarua government is preparing policies and the regulatory framework for the dairy

sector and can decide on how to support development of the industry in the county. In meetings with the

county minister of agriculture the SSC-Dairy project got the full support. (The forth coming August

general election in Kenya will see a new Governor being elected, however, the understanding is that this

will not change much of the policies towards the importance of the dairy value chain). The county

government is responsible for the public extension service to assist farmers in their farming business. The

service is, however, weak on resources and capacity, and the major dairy companies are setting-up their

own advisory service to help farmers produce more and in particular cleaner milk. Kenya Dairy Board has

field staff posted in the county to supervise and accomplish the regulatory role of KDB.

Other donors are involved in the dairy sector in Nyandarua with main emphasis on increased production

and productivity and less on raw milk quality. The Swedish (SIDA) supported project Agricultural Sector

Development Support Programme (ASDSP) has established a dairy development platform as forum for all

stakeholders to participate in a dialogue and SSC-Dairy would be welcomed as a member of the forum.

As already mentioned, SNV is involved in a comprehensive project to develop and demonstrate the

benefit of quality based milk payment scheme with a dairy company in Nakuru (Happy Cow), and they

collect milk from a large dairy farmers’ cooperative in Nyandarua. It is therefore important to keep close

contact with SNV and the project to benefit from any progress they do and share information and

experiences.

5. PROPOSAL FOR “CLEAN MILK HUB” MODEL IN NYANDARUA

Food safety is the overall focus in the SSC-Dairy project and in the field this means clean milk production

and handling with no tolerance for contamination and adulteration of the raw milk.

PARTNERS

After the two weeks’ tour of the dairy value chain in Nyandarua, the preselected dairy companies and

their capacity and willingness to participate as active partners in the development of “clean milk hub” was

again assessed. Both companies were serious about their problem with milk quality and were willing to

share all insights and allow the SSC-Dairy project to intervene in their supply chain as seen appropriate

and to take milk samples in the processing plant. It is therefore proposed to continue cooperation with

the following two dairy companies as the major partners in the field activities (to be confirmed through

signing of a Memorandum of Understanding (see annex 5):

(1) Kinangop Dairy Ltd (KDL) – owned by MUKI Dairy Farmers Cooperative and MUKI SACCO and

MUKI Investment. MUKI is delivering 75% of all milk processed by KDL. The total capacity for

processing is over 100,000 litres per day while they are only at present processing about 30,000

litres because of low milk production due to a prolonged dry period. KDL was established in 1999

as Mkulima Creameries Ltd and changed its name to Kinangop Dairy Ltd in 2006 to indicate a

widening of its operation and the ownership by the Kinangop farmers. KDL has an ultramodern

milk processing plant 120 km north of Nairobi (most of equipment sourced from Denmark) and

produce a full range of dairy products, including packaging for the low-end market and selling of

bulk milk through milk dispensers at supermarkets far below the price of packed milk.

(2) Countryside Dairy Ltd – a new private investment started in Nyahururu 2014, including Dutch

equity funding from DOB Equity since 2016. Countryside is buying milk from dairy farmers’

association and individuals mainly from Nyandarua and the company is marketing milk for the

low-income consumer segment, including through “milk-ATM’s”/milk dispensers for bulk milk in

local supermarkets and in Nairobi slum area for half the price of packed milk. Countryside has an

installed capacity of 5,000 litres per hour (100,000 per day) and is now processing only about

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20,000 per day. Gathanga Dairy Farmer’s Association in Nyandarua is one of the main suppliers

to participate in SSC-Dairy project activities along other suppliers to be selected in phase 1.

(3) Other partners not directly involved in the production and handling of milk includes

- Nyandarua county government officials related to dairy and livestock

- Kenya Dairy Board – both Headquarter in Nairobi and field staff in Nyandarua

- KEBS – as official laboratory

- SNV – because they have similar activities and interventions in larger scale in the Kenya dairy

value chain

- Dairy Training Institute, Naivasha – to do some of the outsourced training and curriculum

development.

- Dairy Research Institute at KALRO (Kenya Agriculture and Livestock Research Organisation) in

Naivasha will be consulted in case a need for dairy research is identified as a result of project

intervention.

DEFINITION OF CLEAN MILK HUB:

Milk of improved quality received at the dairy plant

- Organoleptic (no bad odours, taints or discolouration)

- Good hygienic quality

o TBC< 2,000,000; (often tested indirectly by the 10 minutes resazurin or methylene blue)

o Coliform plate count <50,000

o Somatic cell count < 300,000

o Temperature below 10 C

- No antibiotic residual

- No aflatoxins

- No adulterations or added substances (specific gravity using a lactometer)

The long term perspective is to develop a quality based milk payment system to give financial incentive

to all levels of the milky way to maintain milk clean and avoid any adulteration. It is, however, not

feasible to enter into development of such a payment scheme within present timeframe of the SSC-dairy

project. The activities and interventions discussed here is on the other hand necessary preconditions for

development of payment for quality scheme and all findings can be used by the partners in their

endeavour to set up and agree on a system. The project will, however, try to identify a few very simple

qualifications for paying a small bonus to farmers and cooperatives supplying “clean milk”. A small bonus

can be paid for no antibiotics, for milk supplied at low temperature and in proper aluminium, stainless

steel or other cans approved for handling of milk instead of all the various plastic jerry cans seen along

the collection routes. Other simple qualifications will be discussed with the two partner dairies during the

initial interaction with the Danish dairy experts and if feasible introduced.

Taking departure in the present and ongoing quality control system and extension the Danish dairy

experts will identify options for improvements and if feasible start to introduce alternative procedures and

organisation of milk collection and testing of milk quality – to develop best practices.

Test of raw milk quality at the different levels of the supply chain will be different:

- Farm/ collection point level: important to ensure that milk is clean and that it has not soured:

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o Colour, appearance

o Freshness – clot on boiling or alcohol test

- Milk cooling and collection centre: important to avoid that soured milk enters into the bulk

tank and to prevent adulterated milk to be accepted (water, chemicals, etc.)

o Colour, appearance, taste (after pasteurization)

o Freshness - Clot on boiling or alcohol test, or pH strip

o Specific Gravity by lactometer

o Resazurin or methylene blue

o Test of milk in cooling tank (temp., titratable acidity)

- Processing plant

o Colour, appearance, taste (after pasteurization)

o Specific Gravity

o Titratable acidity

o Fat content (probably also content of lactose, protein and total solids)

o Antibiotics

o Total plate count

o Resazurin/methylene blue test

THE “MILKY WAY” FROM FARM TO DAIRY PLANT

Issues of importance

- On farm – clean milk production, handling, storage, delivery to next level

o Clean animals, milking hands, tools and milking place

o Procedure for transferring milk for storage and transport until delivery

o Time between milking and delivery

o Morning and evening milk

o Issues: use of proper utensils; mixing of evening and morning milk; storage of evening

milk; time between milking and delivery to cooling/processing; adulteration

- On the road – collection procedure, testing, equipment, route and time

o Clean utensils and handling of milk

o procedure for transferring milk during transport

o timely and effective transport

o issues: adulteration with water or other substances; Mixing of evening and morning milk;

fair payment to farmer and feed-back on milk quality problems

- Bulking at collection point – procedure, testing, equipment, time

o Clean utensils and handling of milk

o procedure for receiving and accepting milk

o procedure for not accepted milk

o issues: adulteration with water or other substances; fair payment to farmer and feed-

back on milk quality problems

- Reception and bulking at cooling centre (MCC) – procedure, testing, equipment, time

o Clean utensils and milk cooling tank

o procedure for receiving and accepting milk; including hours of milk reception morning and

evening; cooling tank capacity, volume and cooling per hour

o procedure for not accepted milk

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o Issues: milk of low quality accepted; long hours of milk reception (too long transport

before reaching MCC); milk delivered in inadequate containers accepted; high

temperature in received milk; slow cooling in milk tank with tank temperature staying too

high adding to microbial growth

- Transport from MCC to dairy plant – procedure, testing, equipment, time

o Clean utensils (pump, tanker on lorry, pipes etc)

o Temperature in cooling tank at loading time

o Transport time

o Transport tank: cooling or just insulated

o Issues: proper cleaning of utensils used for transferring milk from cooling tank to

transport tank; procedure for collecting and accepting milk; temperature of milk when

collected by processor; procedure for not accepted milk

- Reception at dairy plant – procedure, testing, equipment, time

o Procedure for testing and accepting

o Procedure for not accepted milk

o Issues: handling of not accepted milk; feed-back to producers and transporters of not

accepted milk; handling of different qualities of raw milk before entering the processing

plant

- Processed products for the market – testing of quality before leaving the plant

o Procedure for testing and level of accepting finished products

o handling of different raw milk qualities in the plant

o pasteurisation procedure depending on raw milk quality

o Issues: processing of milk with high microbial load; processing of milk at risk of having

been adulterated

At all levels is a Standard Operations Procedure (SOP) to be developed or upgraded to ensure most

efficient and timely handling of the clean milk. Most important aspects are hygienic milking routines; use

of tools and equipment that are easy to clean; shortest possible time on the road (< 3 hours) before

cooling; clear identification of farmer, transporter, bulking points, cooling centre; and finally, at each

level the SOP will include the appropriate and minimum testing of milk quality to be done before milk is

accepted to the next level, including levels of acceptance. The objective is to develop a model for a clean

milk hub and the intension is not to include all suppliers initially. It is, however, for this pilot phase

proposed to select a few supply chains in each location representing the various options: i) cooperative

including milk collection points and milk cooling and collection centre; ii) direct delivery by individual

farmer; iii) delivery by private collector on behalf of several farmers; iv) other options. It is expected that

2 -3 cooling centres and 2-3 of their supply chains can get involved together with 1-2 other supply

chains.

6. SSC-Dairy SUPPORTED ACTIVITIES AND INTERVENTIONS

PROPOSED INTERVENTIONS

The overall objective is to improve the quality of raw milk received for processing – as a precondition for

presenting high quality and safe dairy products to consumers.

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All proposed interventions will be agreed upon with the two dairy companies selected and the selected

milk supply chains.

All interventions will be implemented based on an agreed procedure for quality control and level of

acceptance/rejection at all levels using the manpower in the dairy companies and their supplier

organisations – a self-implemented model where the dairy experts will work together with the factory and

MCC staff. There might be a need for outsourcing some laboratory work to other partners, such as KEBS

in Nairobi. Although this is a minor pilot within the overall SSC programme, the SSC partners in Kenya –

both at national and local government level - will be engaged in the interventions according to their

mandate in the dairy sector and food safety regulation and enforcement. Emphasis will be to keep all

interventions and tests as simple as possible.

The SSC-Dairy project will support the interventions with mainly technical assistance from Denmark i.e.

introduction of innovative technologies, technics and procedures that ensure cleaner milk and more

efficient handling of milk throughout the value chain, including capacity building such as training and

demonstrations. There will be no supply of dairy equipment, however, it is foreseen that some new

testing tools and kits will be provided and tested. This includes amongst others infrared measure of

temperature and rapid test for antibiotics and aflatoxins. There might be need for outsourcing some

training activities to other partners, such as DTI, Naivasha. The training at DTI will be developed and

planned in partnership with KDB.

The interventions are planned in four phases that coincides with four interactions in Kenya each of about

2 weeks by the Danish team of two dairy and food safety experts from Dairy Without Borders:

Phase 1: Survey of raw milk quality along the whole milk supply chain, testing the raw milk at each level

where the milk is handled and transferred. Most test should be simple and rapid test to be done in the

field and on the platform, whereas other tests (TBC, SCC, Coli bacteria) would have to done at central

laboratories in Nairobi, such as KEBS who is a partner to the overall SSC-Food programme. Already

during the first visit, the Danish Dairy experts will update some of the reviewed procedures and functions

and undertake “on-the-job” training and demonstrations as found appropriate. The partners are then to

continue implementation of the agreed improvements and tests until next visit. Visit to DTI, Naivasha, is

included in the first phase for planning of cooperation and future training activities. The following list is

indicative for first phase activities:

Selection of milk collection routes

Review of milk selection routes: weaknesses; strengths; opportunities; risks.

Development and introduction of improved procedures

Review of milk reception at dairy plant: weaknesses; strengths; opportunities; risks

Development and introduction of improved procedures

Visit to Naivasha DTI to discuss training needs – jointly with KDB

Phase 2: Review and follow-up of intervention initiated during phase 1 and introduction of revised SOP’s

and a set of internal rules for improvement of raw milk quality, including tests and level of

acceptance/rejection of milk at the different steps from farm to plant. Training and demonstration

activities. Survey of milk quality along the supply chain to measure if the interventions have had impact.

Preparation of alternative milk collection schemes, such as having employed staff on motorbikes to run

specific routes and collect milk for quick delivery to MCC, both morning and evening. The partners are

then to continue implementation of the agreed SOP’s and tests until next visit. Workshop at DTI,

Naivasha, jointly with KDB, to discuss how to improve and maintain quality of raw milk on the travel from

farmer to dairy plant. Participants in the workshop will be selected key staff from the two dairy

companies and local Government and KDB extension officers directly involved in the dairy value chain.

Activities similar to phase 1, however, with more emphasis in this phase on quality control and

procedures within the dairy plant with review of quality of final products, including the special challenge

when selling bulk milk through dispensers in supermarkets or small outlets.

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Phase 3: Review and follow-up of intervention initiated during phase 1 and 2. Survey of milk quality

along the supply chain to measure if the interventions have had impact. Training and demonstration

activities. Follow-up on the introduced milk collection schemes for quick milk delivery to MCC, both

morning and evening. The partners are then to continue implementation of the agreed SOP’s and tests

until next visit. Second workshop at DTI, Naivasha, jointly with KDB, to discuss how to improve and

maintain quality of raw milk on the travel from farmer to dairy plant and in particular discuss the

procedures for operation of bulk milk dispensers to maintain good milk quality. Participants in the

workshop will be selected key staff from the two dairy companies and local Government and KDB

extension officers directly involved in the dairy value chain. Phase 3 activities will again have more

emphasis on quality control and procedures within the dairy plant with review of quality of final products.

It is important in this phase also to review the processing lines in the dairy plant to identify weaknesses

and opportunities for a more effective processing technology using less power with lower risks for

contamination resulting in longer shelf life.

Phase 4: Follow-up and refining of the SOP’s and the number of tests based on the experience and

lessons learned during the previous 3 phases. Training and demonstration activities continued and

finalised. Survey of milk quality along the supply chain to measure if the interventions implemented have

had impact. During all interactions, the measured milk quality will be documented and saved for later

assessment of the results and improvements obtained during the project. Conclusion and

recommendations on SOP’s and for possible improvements in the processing technology and choice of

products in the dairy plants.

First phase is planned to take place July 2017.

Second phase could be three months later to allow time for preparations of SOP’s and training material

and is planned to take place late November 2017.

Third phase after another 4-5 months and is planned for February/March 2018.

Fourth phase is planned to take place late May 2018 to conclude all interventions and formulate

recommendations.

The dialogue between the Danish dairy experts and the direct partners is planned to continue by

mail/Skype in between the visits.

A local dairy expert will be employed on part time basis by RDE to assist the Danish dairy experts in

planning and implementation of their activities – and support the Danish Embassy in maintaining

momentum in between the three interaction with the Danish dairy experts.

Instead of setting up a multi stakeholder forum (as described in the Project Document) it is agreed to

partner with the Agriculture Sector Development Support Programme (ASDSP) dairy stakeholder platform

in Nyandarua as the forum for sharing information in a joined seminar with all stakeholders in the dairy

sector in the county.

After each visit the Danish dairy experts will prepare a short report to the management of SSC-Dairy

listing the identified constraints and problems, the interventions agreed upon and being implemented,

including a draft programme for the next visit.

OTHER INTERVENTIONS DURING THE DANISH EXPERTS VISIT TO KENYA

1. Identify and test new rapid methods to be used along the milky way from farmer to processor to

analyse for milk quality

2. Identify and test new rapid methods to be used in the dairy processing plant to analyse for milk

quality

3. Review code of standards for milk handling on the way from farmers to processor and at the

processing plant – suggest appropriate improvements, such as cleaning procedures for used

transport containers. Part of the preparation and implementation of SOP’s.

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4. Assess if installation of plate heat exchanger for instant cooling of milk when received at MCC’s

would be economic feasible (lower TBC in tank milk, lower wastage of milk, reduced use of power

for half full cooling tank)

5. Assess water quality at all steps and suggest means of improvement if appropriate, such as

filtering or chlorine treatment of water supply. Assess if hot mater is available for cleaning

purposes.

6. Identify and assess existing mobile phone applications for farmers, milk graders, dairy

cooperatives, processors to register milk amounts, quality, payments etc. making it possible to

reduce the heavy load of manual work (time consuming, slow and with high risk of mistakes).

7. Assist the dairy cooperatives and dairy processing companies to identify electronical programmes

and devises to reduce the present heavy load of manual work.

8. Review and assess the present advice and its delivery to farmers on clean milk production and

handling – and if appropriate suggest improvements.

9. Assess if personnel involved in testing raw milk quality at all steps have the necessary

qualifications and if needed - prepare and implement in-service training programmes – most

likely as training of trainers who will then do the training in the field.

10. Review the dairy plants processing procedures and choice of products for the market - and if

appropriate prepare alternative options concerning both equipment and product range for the

management to consider (such as in-pouch/bottle pasteurization and UHT milk (incubator) as an

alternative to the most common continuous flow system of Tetra Pack and others).

11. Assess if study trip would be a feasible part of the capacity building. The proposal is to go for

two to three days’ trip (one or two nights) for a selected group (12-15) of dairy farmers, milk

graders, MCC staff and extension officers and dairy plant staff to

a. Meru Dairy Cooperative

b. Baraka farm, Eldoret, with a model dairy farm and training facilities.

7. TIME SCHEDULE AND TA RESOURCES NEEDED

Four visits of two Danish dairy experts from Dairy Without Border to be fielded in Kenya before

September 2018.

The proposed schedule is to have the first visit as soon as possible – most likely by mid July 2017 to be

finalised well before the general election in beginning of August.

The remaining three visits to be organised by the experts in agreement with the partners – it is proposed

to have the second visit no later than three months after the first and the third visit after another 4-5

months, and the draft schedule looks like this:

First visit mid July 2017

Second visit, late November 2017

Third visit, February/March 2018

Fourth visit, May 2018.

The initial first visit could be planned along the lines scheduled below:

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Day Activity Accommodation

1 Arrival in Nairobi Nrb

2 Danish embassy briefing by the Growth Counsellor

Meeting with KEBS to organise milk sampling and analysing (TBC,

SCC, Coliform bacteria and other as needed).

Meeting KDB: Kenya milk standards, control and regulation; KDB field

activities; organise cooperation with KDB field staff in Nyandarua.

Meeting with Kinangop Dairy Ltd CEO (Nairobi office)

Meeting with Countryside Ltd CEO (Nairobi office)

Nrb

3 Departure for Nyandarua – Countryside Dairy ltd Thomson Falls hotel

or Royal Garden Ol’

Kalou

4 Introduction and planning of cooperation (HHN, RDE participates) with

Countryside Dairy management

Thomson Falls hotel

or Royal Garden Ol’

Kalou

5 Introduction and planning of cooperation (HHN, RDE participates) with

Kinangop Dairy management

Thomson Falls hotel

6-8 Field activities in the Kinangop Dairy supply chain in close cooperation

with MUKI Dairy Cooperative and private suppliers

9-11 Field activities in the Countryside Dairy Ltd supply chain in close

cooperation with Katanga Dairy Cooperative and private suppliers

12-13 Field activities and training in the Kinangop Dairy Ltd supply chain –

Follow-up and agreeing on interventions until next visit

Including a one-day trip to DTI, Naivasha

Thomson Falls Hotel

or

Royal Garden Ol’

Kalou

14 Field activities and training in the Countryside Dairy Ltd supply chain –

Follow-up and agreeing on interventions until next visit

Thomson Falls Hotel

15 Returning to Nairobi for

- debriefing of Growth Councillor at Danish Embassy and

planning of next mission

- follow-up meetings with KEBS and KDB and others if

necessary

Nrb

Return to Denmark

Other inputs:

- Transport for the Danish experts while in Kenya – small 4wd with driver

- Local dairy sector consultant

- Laboratory analyses

- Outsourcing of training to DTI

- Small testing equipment and rapid test kits

- Study tours in Kenya

12

8. NEXT STEPS

Issue Responsible Dead line

1. Draft report JH 19 May 2017

2. Draft ToR for dairy experts from DWB JH, HHN 19 May 2017

3. Budget revision HHN 23 May 2017

4. Agreement and planning of the interaction in Kenya by the

experts from DWB

DWB, HHN,

TK

30 May 2017

5. Final report JH, HHN, TK 30 May 2017

6. Selection and presentation of dairy expert candidates for

project activities in Kenya

DWB 06 June 2017

7. Approval of DWB candidates HHN, TK 09 June

8. Recruitment of Kenyan dairy experts by SSC-Dairy/RDE HHN 01 July 2017

9. Plan for first phase visit to Kenya DWB 16 June 2017

13

9. OPTION FOR THE FUTURE INTERVENTIONS BY THE ROYAL DANISH EMBASSY:

Next phase of SCC?

If the SCC project is extended beyond the present phase it is foreseen that the model for Clean

Milk Hub if proved effective can be up-scaled and introduced to other dairy companies and dairy

farmer associations and cooperatives in Nyandarua and nationally. Furthermore, a quality based

milk payment system can be developed and implemented based on phase one results – in

cooperation with the present partners and with other companies and project working along the

same agenda. Further, a review of the curriculum at Naivasha Dairy Training Institute (DTI) could

be required to include the new standards of clean milk production and handling introduced,

because DTI is the national institution mandated to educate and train field and processing plant

staff in clean milk production and processing. The review and updating could be done in 3 days’

work shop at DTI with all important stakeholders from the industry participating. The option of

establishment of a multi stakeholder forum for the dairy sector in Nyandarua will be part of the

optional extended phase of SCC.

14

10. ANNEX

1. People and organisations met.

Name Position Organisation

Samuel Macharia Chief Executive Officer Kinangop Dairy Limited (KDL)

Duncan Factory Manager KDL

William Nwangi Wambugu

0721444016

Mwangi1958@yahoo.com

General Manager MUKI Dairy Farmers Cooperative

Harrison Kuria

0725932914

Chief Accountant MUKI

George Mwangi Managing Director Countryside Dairy LtD

Paul Antipa Plant Manager Countryside

Samual Mutunga Production Manager Countryside

Gerard Oosterwijk Director Happy Cow dairy

Catherine Oosterwijk Happy Cow

Binoy Zachariah CEO Zach Holdings (incl. Bio)

Judy Kitinji Dairy Value Chain Advisor SNV and Kenya Market-Led Dairy

Programme-II (KMDP)

Mungai Gabriel Principal Dairy Training Institute, Naivasha

Paul Ndung’u Chief Dairy Development

Officer

Kenya Dairy Board - KDB

Evanson N. Mwangi Chief Dairy Inspector KDB

Dominic Menjo Chief Manager, Milk

procurement

New KCC LtD

Emmanuel Kabaki General Manager – Milk

procurement and Extension

Brookside Dairy LtD

Michael Vinther Møller Area sales Manager, Middle

East and Africa

FOSS

Benson m. Riungu CEO/ Director Nairobi Medical Stores LtD (FOSS agent in

Kenya)

Peter M. Nagaruiya Programme Manager Eastern and Southern African Dairy

Association (ESADA)

Julius Kiptarus Director of Livestock Production Ministry of Agriculture, Livestock and

Fisheries

James Tendwa Deputy Director Livestock

Production

Ministry of Agriculture, Livestock and

Fisheries

Agatha Wamuyu Thuo Minister for Agriculture Ol’Kalou County Government

Dr. Mwirigi J.W. ASDSP County Coordinator,

Nyandarua

Agricultural Sector Development Support

Programme

15

10.2 Abbreviations and Acronyms

ASDSP Agricultural Sector Development Support Programme, funded by Sweden

cfu Colony forming units/ count of bacteria in a milk sample

DPH Department of Public Health

DTI Dairy training Institute in Naivasha

DVS State Directorate of Veterinary Service

DWB Dairy Without Borders, Denmark

HACCP Hazard Analysis and Critical Control Points

KEBS Kenya Bureau of Standards

KDB Kenya Dairy Board

KDL Kinangop Dairy LtD

MCC Milk Collection and Cooling Centre

RDE Royal Danish Embassy, Nairobi

SCC Somatic Cell Count

SIDA Swedish International Development Agency

SNV Netherlands Development Organisation

SOP Standard Operations Procedure

SSC Strategic Sector Cooperation

SSC-Dairy Strategic Sector Cooperation in the dairy sector in Kenya

TBC Total Bacterial Count in a milk sample

10.3 References attached

1). Preliminary study of the Kenya dairy sector- Assessment of opportunities for utilizing Danida

sector programmes and business instruments to strengthen the Kenya dairy sector. (Danida, 2007).

2) Quality based milk Payment Study. Kenya dairy Sector for SNV KDMP Project, 2013.

3) Quality Based Milk Payment – Updated Power Point presentation of April 27, 2017. (Confidential

information from SNV and Happy Cow LtD.)

4) Baseline Study on Food Safety in Dairy and Plant Based Food Sector in Kenya. Royal Danish

Embassy, November 2016.

5) Memorandum of Understanding