1. Prof.E.Gicheru,Migwi Wanjohi, Silas Maiyo,
ESTABLISHING THE RELATIONSHIPS AMONG DAIRY CO-OPERATIVES, SACCOS AND INDIVIDUAL DAIRY FARMERS: THE CASE STUDY OF THE MOUNT KENYA REGION IN KENYA
A Research by:
Prof.E.Gicheru,Migwi Wanjohi, Silas Maiyo,
Kizito Omollo, Richard Mwangeka & Edith Kagumba
From
Agri and Co-operative Training and Consultancy Services Ltd and Co-operative University of Kenya
Presented during
Cooperative Research Symposium in Rwanda on 22nd May,2018

2. 1.0 INTRODUCTION
MT.KENYA REGION: Source: Wikimedia Commons

3. Cont’d INTRODUCTION
Agricultural Co-operatives and Savings and Credit Cooperatives (SACCOs) – are 84% of all Co-operatives in the Kenya (Land O’Lakes,2018).
Co-operatives, world over have lifted communities from the “jaws” of poverty.
Agricultural Co-operatives and Savings and Credit Cooperatives (SACCOs) - represent approximately eighty four percent (84%) of all Co-operatives in the Kenya (Land O’Lakes,2018).
Each of the two types of Co-operatives provides different, yet complementary forms of services and benefits to member farmers.
Among serious Agricultural Co-operatives, are the Dairy Co-operatives!

4. Cont’d INTRODUCTION Dairy Value Chain in Kenya
Total milk production was 3.5 billion(2007) ,5 Billions (2011) and 3.7Billion(2012) Litres
55% of all milk is marketed
20% goes through the formal channels.
Dairy Co-operatives provide the main market outlet
Dairy Industry has been growing
Total milk production was Billion litres in 2017
55% of all milk produced in the Kenya is marketed, but only 20% of that marketed milk goes through the formal channels.

5. Cont’d INTRODUCTION SACCOs
Ensure financial inclusion to both Dairy Co-operatives and Individual Dairy Farmers

6. 2.0 STATEMENT OF THE PROBLEM
limited financing, inadequate support of the Co-operatives by the Members; unstable milk prices and production; poor marketing, storage and transportation services; poor quality milk production ; non-formal milk buyers.

7. 3.0 OBJECTIVES OF THE STUDY
To establish the relationships among the Dairy Co-operatives, SACCOs and Individual Dairy farmers
To establish the extent of financial inclusion of the Dairy Co-operatives and Individual Dairy Farmers

8. 4.0 LITERATURE REVIEW 1.Co-operatives More than 24,000 Co-operatives
Contributes 45% to the GDP of Kenya
80% of the Kenyans derive their livelihood
35% of the GDP-Agricultural-based co-operatives
More than 1.5 million are dairy farmers.
2. SACCOs’ Contribution
3.Sustainable Development Goals (SDG) from the Co-operatives Development Perspective
4.The Relationship between Agricultural Dairy Co-operatives, SACCOs and Individual Dairy Farmers

9. 5.0 RESEARCH METHODOLOGY
Research Design-mixed approach Sample and Sampling Procedure- Purposive and Convenient sampling used Sample :Counties, SACCOs, Dairy Cooperatives, Chairs, CEOs/ Managers, Co-operative officers, Individual Dairy Farmers ,Actors(Veterinary Service providers ,Input suppliers ,Milk -Middlemen and Transporters Period of the study -19th March to June 2018 Data Collection and Instruments- questionnaires, interview schedules and FCD guidelines Data analysis for the Study -Quantitative Analysis and Qualitative Analysis Validation workshop-30 May,2018 Cooperative Financial Symposium-29June,2018

10. 6.0 KEY FINDINGS SACCO 14 Approx 840,554 Active-85% Dormant-15% F-42%
Number
Membership
Gender
Relationships
SACCO 14
Approx
840,554
Active-85%
Dormant-15%
F-42%
M-58%
1.Give loans–Milk Advance,
Inputs and Development loans to individual farmers and Dairy Coops
2. Offer Saving Products
3.Trainings
4. Give Milk payments
Dairy Coop-eratives
26,776
Active-53%
Dormant-47%
F-45%
M-55%
1.Access loans(86%)–Milk Advance(64%),
Inputs and Development loans from the SACCO
2.Savings(93%) with SACCOs
4.Give Milk advance to farmers
5.Guarantee loans to farmers
6.Keeping of records

11. Cont’d 6.0 KEY FINDINGS Individual Dairy Farmers 47 - F-45% M-55%
Number
Membership
Gender
Relationships
Individual
Dairy Farmers 47 -
F-45%
M-55%
1.Access loans –Milk Advance,
Inputs and Development from SACCOs & Dairy Co-operatives
2.Saves with SACCOs
3.Trainings
5.Loans Guaranteed loans Dairy Coops
6.Dairy Coops Keep of records

12. Cont’d 6.0 KEY FINDINGS

13. Cont’d 6.0 KEY FINDINGS .

14. 7.0 RECOMMENDATIONS
There is need to deepen the relationships among Dairy Co-operatives, SACCOs, Individual Dairy Farmers and other Actors in the Dairy Value Chain for mutual benefits i.e
SACCOS to develop Financial Products for Milk Value Addition
SACCOs to develop Financial Products to enable Animal Feeds production by the Dairy Coops
SACCOs to offer long term loans to Dairy Coops and Individual Dairy Farmers

15. Cont’d 7.0 RECOMMENDATIONS
Dairy Industry Act Cap 336 should be enforced to regulate the Industry
Improvement of Dairy equipment and machinery e.g. coolants, pasteurizers
Improvement of animal breed
Enhance capacity building on financial literacy and good dairy farming practices to the Dairy farmers
Enhance capacity building on governance to the Management Committee of Dairy Co-operatives

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