1. Study conducted in Rwanda, Uganda and Kenya
Costs and benefits analysis of feed technologies promoted by the East Africa Dairy Development Project (EADD)
Study conducted in Rwanda, Uganda and Kenya
Ben Lukuyu, Gregory Sikumba, Isabelle Baltenweck and Alice Njehu
October 2013

2. Introduction
In East Africa, feed availability often affects livestock productivity and continues to be a major challenge on smallholder farms.
Small scale farmers often feed dairy cattle herds at maintenance levels only which leads to low herd productivity.
It has been shown that farmers who adopt new technologies can increase the financial benefits through increased biophysical productivity or through reduced input costs (Franzel, 2003)
Feeds and feeding contributes 60 – 70% of the total cost of milk production in East Africa (EADD, 2010)
The East Africa Dairy Development (EADD) Project is promoting various feed technologies to improve milk production on small-scale dairy farms in Kenya, Uganda and Rwanda.
The broad objective of the study was to determine the profitability of feed technologies being promoted by EADD in Kenya, Uganda and Rwanda to assist farmers to make informed decisions. Knowledge of enterprise’s profitability will enhance the promotion of feeds and various technologies in the sites and guide the dissemination strategy of the EADD project.
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3. Feed technologies surveyed
Tube silage tube
Tube silage making
Mixing home made rations
Plastic tank silage
Above ground silage making
Chopping fodder maize
Hay making
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4. Improved pastures (Rhodes grass)
Mucuna pruriens
Medicago sativa (Lucerne)
Calliandra calothyrsus
Improved pastures (Rhodes grass)
Desmodium intortum (green leaf)
Pennisetum purpureum (Napier grass)
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Avena sativa (common oats)
Lablab purpureus (L.)
Zea mays (Maize as Food and Feed)

5. Site and farmer selection
The study approach
Study period
The study was conducted between February and May 2012 in Kenya, Uganda and Rwanda.
Site and farmer selection
Sites were purposively selected based on feed recommendation domain.
Farmers adopting the technologies in each hub were randomly selected from five farmer groups which had also been randomly identified.
Number of sites
A total of six hubs in Kenya (Olkalou, Kabiyet, Metkei, Longisa, Litein and Siongiroi), three in Uganda (Bubusi, Mukono and Masaka) and three in Rwanda (Rwamagana, Nyagatare and Gatsibo) were sampled for the feed technologies
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6. Number of feed technologies sampled in Kenya, Uganda and Rwanda
Country
Fodder
Hay
Silage
Pastures
Home-made ration
Kenya
164 20 17 88 27
Uganda
109 9 37 11
Rwanda
112 5 79 2
Total
385 34
201 40
Data collection
Data was collected for each feed technology using personal digital assistant (PDA). Collection of data was done through a one-on-one interview by administering a structured questionnaire which was entered directly into the PDAs. Data on production cost, area under fodder, yield and revenue was collected and analyzed. A database was created using the Census and Survey Processing System (Cs Pro).
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7. Fodder adopters’ profile
Cows feeding on improved grass
occupation for farmers in Uganda and Rwanda
Overall, farmers in the three countries had grown livestock fodder for more than 5 years. Farmers in Olkalou, Kenya had more experience in growing fodder than farmers in the other hubs. Farming was the main occupation among the sampled farmers in Kenya (65%).
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8. Average land size, proportion of land under fodder and dairy cattle kept
Farmers in Rwanda had on average more land under fodder (17 acres) compared to Kenya and Uganda with 7 acres of land under fodder. Relative to the total land size, land under fodder was 12%, 11% and 13% for Kenya Uganda and Rwanda respectively.
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9. Sources of planting material in Kenya, Uganda and Rwanda
Napier grass planting materials, splits/cuttings, were sourced mainly from other farmers in the three countries.
Farmers in Kenya also sourced Napier grass planting materials from own propagation as well.
Calliandra calothyrsus seeds were sourced from other farmers in Kenya and Uganda, while in Rwanda seeds were mainly sourced from research organizations.
Farmers growing Zea mays (fodder maize), Avena sativa (common oats) and Medicago sativa (Lucerne) in Kenya mainly purchased the planting seeds.
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10. Annual cost of fodder production per acre in Kenya, Uganda and Rwanda
Gross margin=Revenues (fodder yields) X market price - Costs (planting materials, fertilizer/manure, pesticides, herbicides, fungicides, labor, any other cost).
In all fodder types surveyed, labor constitutes the largest component of the fodder production total variable costs across the three countries
Leguminous fodder, especially Calliandra calothyrsus in Uganda and Rwanda, Medicago sativa (Lucerne) in Kenya and Napier in Rwanda showed the highest margin of return.
Across the three countries on average Uganda had the lowest variable costs of production of all fodder grown with the highest gross margins followed by Rwanda. Kenya and Rwanda showed that the costs of growing fodder were high.
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11. Silage (1) Pit silage ILRI, 2012
Method used to conserve silage
Silage was mainly prepared from Napier grass and fodder maize in Kenya and Uganda. Farmers in Rwanda mainly used fodder maize.
All silage made was used on farm.
The most common method of silage making was tube and pit silage in all the countries under study.
Plastic tanks and above ground silage making were not used by farmers sampled in Rwanda. In Uganda, plastic tanks were not used for silage making.
Check N between table and graph
GNS: N corrected
Pit silage
Other *sources of fodder include a mix of two or more fodder types namely napier, calliandra, mucuna, rhodes grass, maize stover, sweet
potatoto vines
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12. Laying the polyethene sheeting
Silage
In Uganda and Kenya, cost of ensiled materials constitutes the major component of the cost of silage production.
Costs of labour and ensiling materials constitute the major component of the cost of silage in Rwanda.
On average silage production cost in Rwanda are very high with farmers making losses (if they were to sell the end product).
Cost (US$ /acre/year) of making silage in Kenya, Uganda and Rwanda.
Mixing with molasses
Laying the polyethene sheeting
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13. Hay (1) ILRI, 2012 Box baling Loose hay
Other sources of fodder include Oats, Kikuyu grass, sudan grass, coach grass etc
Box baling
Loose hay
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14. Average number of bales (14 kg/bale)
Hay (2)
Average number of hay bales produced/ farmer /year
On average farmers in Kenya produced more hay than the rest of the countries under study.
The computations on gross margins showed that small scale farmers in all the three countries made huge losses in hay making. This is attributed to high cost of planting materials and variable costs.
Farmers in the surveyed farms are realizing losses in hay making. This may be why very few farmers produce hay at the current market price. Hence, it makes more sense to buy than to process on farm.
Country
Average number of bales (14 kg/bale)
Kenya 64
Uganda 13
Rwanda 4
Hay bailer machine
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15. Home-made feed rations (1)
Majority of farmers (19/27) in Kenya incorporated energy, protein sources and mineral supplements in the home made ration. Category ‘other’ included farmers who added commercially prepared dairy ration to fodder sources energy and either protein source feed or mineral supplements.
The home made ration is intended to substitute dairy meal to reduce cost of feed supplementation due to high cost of dairy meal which is about USD 0.07/kg. The agony is most farmers don’t know how to make a complete home made ration and as well as understand the rationale of ration formulation.
The cost of home made ration ranged from USD per bag in Rwanda and Kenya respectively. Compared to dairy meal (USD 4.9/bag), home made ration is expensive though the main reason is because farmers add dairy meal to their ration and don’t know how to make a complete ration with the least cost combination of available feed. Farmers need to be trained in ration formulation using the cheapest feed sources.
Farmer combination of feed home-made rations in Kenya, Uganda and Rwanda
Key: E=Energy source feed, M=Mineral sources, P=proteins source feed/by products, O=others. *Added either dairy meal, yeast and poultry waste to the formulation
Home based feed mixing
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16. Home-made feed rations
Animal types fed with the home made rations
In Rwanda and Uganda all rations are fed to only lactating cattle. Some farmers in Kenya feed all cattle a small amount of rations.
Only two farmers in Kenya fed the ration to all cattle types.
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17. A summary of the cost and benefits of technologies promoted by EADD
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18. A summary
The most common fodder type Napier grass had the highest yield per acre (15.9 t/acre) but recorded the lowest gross margins. This may due to its lowest price per ton ($53) compared to the rest of the fodder types. The low gross margins are therefore driven by low sale price.
Overall, labour constitutes the highest cost of production for all technologies promoted
The cost of planting materials especially forage seeds comprised the second highest component of the cost of production for fodder shrubs and herbaceous legumes. This may be due to high cost of seed, inaccessibility and government restrictions in the forage seed delivery system.
Overall, relative to the total land size farmer commit a low proportion of land to fodder production in all surveyed countries (12%, 11% and 13% in Kenya, Uganda and Rwanda respectively).
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19. A summary
Loose hay and box baling are the most common methods of making hay in all countries. Machine baling is only found in Kenya. The computations on gross margins showed that farmers in all three countries made huge losses in hay making. This is attributed to high cost of planting materials and variable costs. This may explains the low average number (4-64) of bales produced per farm per year in all countries and also why few farmers make hay on farms at the current market price.
Labour and cost of ensiling materials comprise the highest cost of silage making. The additional high cost of transport in Rwanda contributed to farmers making loses.
In Rwanda and Kenya, home made rations are more costly than commercial concentrate (dairy meal) . This may because farmers lack knowledge on least cost combination of available feeds e.g. some farmers add dairy meal to their rations negating the rationale of compounding home made rations.
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20. Important implications for EADD
There is need to promote and train farmers in profitable ration formulations that are cheap and could substitute dairy meal to reduce the cost of feed supplementation on farms .
Need to focus on areas that increase cost of feed production in given areas such as cost of labour, ensiling materials, planting materials etc. We therefore need to assess whether mechanization would be profitable and could help bring costs down, alternative cheaper ensiling materials, innovative ways of making forage seed available cheaply etc.
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21. Important implications for EADD
For some technologies and in particular hay making, these results show that small scale processing is not profitable so EADD should consider promoting hay making at group level or larger scale
Need to sensitize farmers to increase areas committed to improved forages with a view of increasing quantities of high quality fodder on farms
Overall improved extension focusing on feed cost benefit analysis of the fodder crops grown in the areas can increase gross margins
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