Reflections on KDSCP
COMPONENT 3
'To date the program engages with 961 service providers -
each focusing on its distinct competence - and enabling LOL
to surpass its targets early in year 3 of the program'.
Mary Munene, Dairy Value Chain Development Coordinator
COMPONENT 3
Availability of Dairy Business Development Services
These activities expand access and availability of business
development services in the sector.
Land O Lakes believe that interventions should not focus on the delivery of a specific set of services, but on improving the system in which
service providers operate so that services can be provided more effectively to farmers over the long term.
KDSCP undertook a business development services (BDS) assessment of local institutions and services plus a consumer survey of service
demand. It was keen to identify institutional strengths and weaknesses and key leverage points that would help the organizations to
delivery on their mandates. Existing and potential service providers were identified via farmers and local authorities. The program then
facilitated support via capacity building of local providers for example assisting Kenya Veterinary Association (KVA) to stimulate the demand
for vaccines and market vaccines to farmers plus facilitating training for veterinary officers via KVA. The program coordinated partners and
brokered agreements between parties to ensure that vaccines could be obtained from the Veterinary Board.
The program then focused on promoting the BDS approach among the providers and engaging them in business opportunity seminars.
Service providers soon realize the value of such seminars, capitalizing on the captive audience to market their products. Often these become
free training session for farmers as providers demonstrate their products or services. KDSCP used role model providers to demonstrate the
benefits to others. Other support to providers included product development and marketing. The program estimates that as of year 4, SP
revenue has reached approximately KShs 25 million against a program target of KShs 20 million.
Using the farmer level analysis of demand for services the program was able to support local service providers to create awareness and
demand for their services and to develop new more appropriate services. It also developed links and brokered contracts, such as, between
feed manufacturers and member based organizations such as cooperatives. Different methods were employed in different milk sheds
depending on service demand.
The tiered working groups have also been actively facilitated to articulate demand for services and stimulate the supply of services. For
example milk shed forums have been harnessed to discuss and demonstrate new technologies. Service providers have been able to
demonstrate their services to the facilitators, SBOs, farmers and other stakeholders in order to expand service delivery. For example biogas
providers used program forums to promote their technologies and have installed 616 biogas digesters to date. KDSCP used the research and
working groups to clearly identify and agree the issues that touch on a range of market actors. For example the program focused on
facilitating the provision of quality semen to improve breeds and reduce interbreeding. The program engaged service provision at the
national, regional and local level.
The facilitator ensured the right providers were able to reach out to offer tailored services such as training to farmers (especially women
farmers). E.g. farmer field schools were established bringing together 20-30 farmers in one central area to agree their curriculum and work
through topics on a weekly basis. The facilitators then helped to refer the relevant service providers to the farmer field school and support
the provider to develop the appropriate content and materials. Providers were also assisted to develop promotional materials to market
themselves and their services via program based activities.
The program has facilitated extensive training for farmers and their member based organizations; and facilitators worked with the providers
to ensure quality in service provision. Farms were used for training thus promoting cost sharing and transactional relationships with
stakeholders (e.g. the program providing inputs and the village providing labor leaving the final output for the farmer). The program
established 200 demonstration farms as a most practical way of disseminating information to farmers. Such user-friendly training has been
proven to motivate farmers. For example demo farms were established for calf rearing, feeding and weighing, sometimes with weekly
monitoring visits from 'trainees'. These also served for exchange visits for farmers from other milk shed on a user-pays basis.
Improved access to BDS is demonstrated by the increased number of farmers accessing and buying services directly. Farm level surveys show
a reduction in production costs per litre of milk due to quality service provision plus an uptake of the training and technologies facilitated
(such as chaff cutters). Household surveys show an increase in incomes from milk and savings on inputs such as feed/fodder. Anecdotal
evidence suggests that service provider income is increasing and their service/product base is expanding.
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