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Dairy Farming In Kenya – Business Plan

Table of contents, land requirement for dairy farming in kenya, housing for dairy farming in kenya, look for a good breed for dairy farming in kenya, factors affecting the production of dairy products, market opportunities for successful dairy farmers in kenya, list of dairy farms in kenya, feeding requirement for dairy farming in kenya, equipment for dairy farming in kenya, steps to start a dairy farming in kenya, health care and management plan in dairy framing in kenya, tips for a successful dairy farming in kenya.

Dairy Farming in Kenya

Hello friends, today we are here with a new topic of “Dairy Farming In Kenya and Business Plan”. Dairy farming in Kenya is an ‘all season’ business and applying efficient management of a dairy farm is the key to success. Dairy farming in Kenya is very important in its contribution to the economies of both the developed and the developing countries of the world. The Kenyan economy is supported to a large extent by the Agricultural sector which is a major contributor to the GDP (Gross Domestic Product). The Agricultural sector supports the majority of Kenyans about 75% of whom earn their living from the farming sector directly or indirectly. Dairy farming in Kenya is the largest Agricultural sub-sector compared to other Agricultural farming. It contributes to about 14% of Gross Domestic Products in Agricultural sector and when combined to Kenya National Goods Domestic Product it produces 3.5%. Dairy production in Kenya is a major farm activity, where it is regarded as a major smallholder, source of income, incorporating over 1.8 million smallholder farm households, who produce over 70% of all milk marketed.

Milk production is a complex process that involves many variables, the input influence milk production which is essential to farmers. There are several factors affecting milk production mainly breed type of feeds, farming practices, and system.

Any aspiring dairy farmer before start-up needs to take the below things into consideration before starting business;

  • Investment required;
  • Sufficient Land required;
  • Type of breeds or number of animals to be acquired;
  • Fodder Management;
  • Prevention from diseases/vaccination of animals;
  • Maintenance of records;
  • Research local milk market;
  • Climatic conditions.

A Step-by-Step Guide to Dairy Farming In Kenya , Business Plan

Guide to Dairy Farming In Kenya

Dairy farming mainly involves breeding cows, milking them, and then selling the milk. The dairy farming business is profitable. Though, to build a successful, sustainable milk dairy farming business, you need sufficient knowledge of how to efficiently keep the milk cows, good management skills, and a good dairy farming business plan.

Smallholder dairy farming constitutes an important source of livelihoods to the majority of mixed crop-livestock farmers involved in agricultural production in Kenya. The number of benefits that farmers get from the dairy farming business cannot be underestimated. When done economically dairy farming is a profitable business to venture into. Also, it comes with a wide range of side benefits other than the production of milk such as manure for farming and farmers benefit by the sale of calves from the dairy cows.

The land is also an important factor for starting dairy farming. When selecting land for your dairy farm, some important considerations are the availability of quality and consistent water supply, the size of the land, quality of grass, and grazing pasture. Some other important factors include the availability of already made infrastructure like a good road network, milk facilities, electricity, pens, sheds, and buildings.

Dairy farming in Kenya also needs to set aside some land for fodder cultivation (for 10 cows depending upon soil rainfall, irrigation facilities, land required vary but 1.5 to 2.0 acres).

Some important factors to be considered when choosing land for dairy farming are;

  • The presence of suitable fertile soils
  • Convenience for transportation within the area
  • Proximity to milk collection centers
  • Access to water supplies for farming
  • Year-round supplies of sufficient clean water
  • Highland areas because the air temperature level decreases 6.5°C for every 1000 meters increase in altitude above sea level.

To be successful in the dairy farming business in Kenya, you must provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons like protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and allowing easier management and then control of the dairy milk herd. The best dairy design mainly depends on the local climatic conditions, budgetary constraints, and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed and water facilities, milking facilities, waste management, and livestock handling features.

The different housing structures can be used for a dairy milk farm and these contain free-stall, tunnels, composite barns, tie-stall facilities, and dairy sheds. Also, other dairy milk cow structures are isolation pens, calving boxes, crowding pens, sorting corrals, working chutes and gates, and squeeze gates. Though, the necessity of the structures depends on the size of the dairy farming business. The dairy farm also needs good fencing, to contain the milk cows and manage their grazing. Equipment necessary for a cattle dairy farming business are cows drinking equipment, feeding equipment, buckets and pails, milking equipment, storage tanks, milk processing equipment, livestock trailer, and manure spreader.

These are some of the main dairy breeds found in Kenya;

Some of the characteristics of a Friesian are;

  • The Friesian has a milk yield between 25–30 liters per day.
  • This cow originated in Holland and is now all over the world. They have a bodyweight of 500-550 kg
  • They are heavy feeders having a daily requirement of about 90 to 110 kg of fresh forage.
  • Requires large amounts of water.
  • The Jersey breed has a milk yield between 15–20 liters per day.
  • Purpose – Milk production.
  • Average yield – 22 liters/day and 6.3% butterfat.
  • The Ayrshire has a milk yield of 20 liters per day.
  • The Ayrshire originated in southwest Scotland.
  • Ayrshire weights about 450 kg
  • The Ayrshire is resistant to some diseases and adapts to varied climatic zones.
  • It requires 90 to 110 kg of fresh forage per day.
  • The Guernsey cow can give you up to 25 liters per day and the butter content 4.3 %.
  • It is known to be fast growers because at the age of about 2 years they are already into milk.
  • They weigh about 400 to 500 kgs
  • They are moderate feeders taking in 65 to 85 kg of fresh forage daily
  • The Fleckvieh breed is multi-purpose and meaning it can be used for milk and meat. It produces between 18 to 20 liters per day.
  • Follow the right breeding programs to ensure cow gives birth every year. It’s a huge blessing when a cow gives birth every year. It’s a big deal and it ensures you have a constant flow of milk and new cows to replace the old ones.
  • Always use artificial insemination (AI) to breed dairy cows.
  • It is cheaper to buy local breeds and use artificial insemination to perfect them over the years.

The dairy sector faces several challenges like Financial, Economic, and Production Resources, Production system, processing, marketing, and institutional problems in dairy product production. These all challenges affect the ability of the dairy sector to compete in the domestic and international markets. Milk production in Kenya is by small-scale farmers and large-scale farmers. Small-scale farmers are those farmers who own 1 to 5 animals and produce about 80% of the milk production in Kenya. Dairy production is affected by the resources available, which is the main to the production. Dairy farmers’ access to loans is equally a challenge, as they cannot offer the biological assets or cows as security and poor financial records and credit history of the farmers.

The Kenyan government through the Ministry of Agriculture has done a lot to improve the breed quality. Though, a lot of effort is needed to introduce new dairy products production systems which are more cost-effective. This can include a zero-grazing system since the farm size continues diminishing as the population continues increasing resulting in fewer dairy products production. Before the dairy sector was liberalized, milk used to be transported by organized milk collection and bulking system in the formal market by individual dairy farmers and dairy co-operative societies.

Factors affecting milk production are;

The amount of milk a cow produces mainly depends on the environment it’s in. The more comfortable the cow, the more amount of milk it will produce. Some environmental factors include;

Weather, climate, and geography – Geography is closely tied to weather and climate conditions. However, if they don’t have a chance to cool down, they will eat less feed and then produce less milk.

Feed – Weather and climate conditions can also affect the feed quality, which translates to the quantity and quality of milk produced. Feed prices can have a large impact on what farmers can use.

Some other important factors include;

Species – Different dairy breeds naturally produce different quantities (and qualities) of milk.

Age – Generally, younger cows produce more milk than older ones.

Milking frequency – Farmers are precise about how frequently cows are milked. The amount of milking per day adds to labor and equipment costs. But waiting too long between milking means quantity and quality will suffer.

Health – Sick cows produce less milk and poorer quality milk than healthy ones.

Dry period – How long a cow is allowed to be “dry” in-between calves impacts how much milk it will give during lactation.

With the growing demand for dairy foods, there is an excellent potential for large-scale milk production in Kenya. Many farmers are adopting modern and advanced dairy farming methods and technologies. The entire country is now gearing towards the dairy farming business.

When we include the fact that Kenya has about 85% of the cattle population in East Africa, we know that there has been no better place to milk cows than Kenya.

List of successful dairy farms in Kenya that are making millions in revenue in the cattle industry.

  • Wilsam Dairy Farm
  • Goshen Dairy Farm
  • Rafiki Farm Ltd
  • Da Bulls Mwangaza Farm
  • Sychar Farm
  • EDFAM Dairy
  • Eldoville Dairy
  • Olumara Estates Limited
  • Meved Dairy Farm
  • Chemusian Farm Limited
  • Rayside Farm
  • Tujenge Farm
  • Sameer Agriculture & Livestock Ltd. (SALL)
  • Kinangop Dairy limited
  • Brookside Dairy Limited
  • Lattana Dairy

Proper feeding allows your cows to better performance. Cows are simple creatures and give them food and they will give you milk. Though give them enough good and nutritious food and they will give you a lot of milk.

You may also check this: Guinea Fowl Farming .

Feeding Requirement for Dairy

Cow forage is divided into 2 groups; Dry and wet. This group constitutes 50% of its daily feed and an example of dry feed is hay. An example of wet feed is silage. You can feed dry and wet forage together or separately and it depends on the farmer. Then, the other half (50%) of feed is comprised of carbohydrates, fats, proteins, minerals, and vitamins. You can find minerals in your local store and mix the minerals with the feed. Protein sources are maize meal, cottonseed cake, sunflower cake, and fish meal, etc.

Here are some of the principles that you should use when selecting a feeding program for your cow. First, analyze the nutritional requirements of your cow. This is determining the condition of cows, for example for pregnant cows; you will select a diet with more supplements if the roughages don’t meet the nutritional requirements.

Increased feeding equals increased productivity. Consider the roughage-concentrate ratio. Ensure that cows are having higher roughage content and this keeps away any digestive disorders. Providing high-quality and appealing diets to cows increases their production and overall health of the cow. Then, good-tasting milk always comes from high-quality feeds given to the cows.

Dairy farming is always a profitable business when it is done economically. Then, the economical way of feeding your cow is growing your fodder. Some feeds will find their way from the blood to the milk and then affect the milk flavor. Ensure the feeds you have for cow don’t affect the quality of the cow’s milk and good tasteful milk is as a result of good quality feeds.

The types of feeds you give to your cows affect milk production. Then, farmers buy cows at high prices, only to make losses once the cows start producing less milk.

You need to give dairy cows fresh fodders, dry feeds, dairy meals, protein, and supplements. You can produce fresh fodder to cut down the expenses of purchasing. Leave the fresh fodder overnight to wilt before feeding it to cows. A dairy cow must eat between 15 and 20 kilograms of forage every day. Finally, make sure that dairy cattle have enough water.

The essential tools and equipment you must procure to start a dairy farming business in Kenya include;

  • Milking Machine
  • Chaff Cutters
  • Parasite Control items like Knapsack Sprayers
  • Milk Strainers and Milk Churns

The Basic Requirement of Dairy farming in Kenya;

  • Proper shed construction.
  • Adequate water supply
  • Good breed of cows (High-yielding cows HF, Jersey, and Sahiwal, etc.)
  • Fodder management like dry fodder, green fodder, and concentrate
  • Proper vaccination schedule

In case if you miss this: Tilapia Fish Farming In Tanks .

Steps To Start a Dairy Farming in Kenya

For you to have a successful dairy farming business in Kenya, you need to follow these fundamental steps;

Step 1) Market Research

It is mandatory to analyze the chosen market for the dairy business. Carry out surveys to find the area and population of target buyers for your dairy products. Also, you need to decide whether they prefer milk or other products. Then, this will help you maximize the profits from your investment. So, the dairy industry in Kenya has an established socio-economic credential for the country. Then, this means that you can earn a pride factor when you become a dairy producer in the region.

Essentially, a dairy farm is a kind of production and sales business. So, the penning down of a customized and detailed plan of business is something you must consider necessary before embarking on this field. Once you have conducted the evaluations of the macro-environmental aspects of the dairy business, you must construct a detailed business plan to be followed for setting up your dairy farm in the country. The dairy farming business plan in Kenya would be like any other business plan and should consist of financial management, operations management, sales and marketing management, and human resource management plans.

Step 2) Capital and Land

Draw up a realistic plan that depicts your accessible resources and then how you can use them effectively to get enough land and equipment to start. The land size depends on the scale of the business, with housing, grazing areas, and waste disposal parts included. Therefore, the site of your dairy farm is vital to the success of the business.

Step 3) Breed selection and fodder

Before making any decision concerning your dairy farm, the relationship between the environment and the cattle must be investigated. The ecological considerations will help to find the most successful cattle type in Kenya as well as the most plausible fodder type for forage. For starters, consider using 3rd or 2nd dairy crosses instead of high-bred cattle. Also, consider growing your feed instead of buying to save the budget of other financial expenses.

Researching the dairy breeds and species is a mandate before you select the dairy species which you should include in your dairy farm. Each of these animals has multiple breeds. You want to consider the regional environment, climatic and topographic conditions, and the requirements of the dairy farm while choosing the right breed and the right species of dairy animals to be bought for the farm.

Dairy cows are reared in dairy farms in Kenya and but before you buy a dairy cow, you want to analyze the appropriateness of the breeds. Then, you can consult the already established and successful dairy farms, the agricultural extension of local universities, and the government institutions and industry experts to decide about the inclusion of dairy animals in a farm.

Step 4) Management Levels and Production Systems

Spend time finding the right balance between the available resource and the chosen dairy management strategy. In Kenya, intensive schemes where the cattle are enclosed for their life cycles are favored as the more efficient system. Also, labor provisions must be considered, outsourcing some services is cheaper than doing them yourself.

Before you start a dairy farming business, you should focus on developing a detailed farm management plan consisting of an animal health care plan, waste management plan, breeding strategies, and feeding and cropping methods. While selecting the appropriate feeding and fodder practices, farm management practices, waste management, breeding, and healthcare can help you in setting up and running a successful as well as sustainable dairy farm business. Then, you can refer to the globally recognized good dairy farming practices for developing a dairy farm management plan. Looking after the farm animal’s health, hygiene, and well-being of the animals reared in the farm is a thumb rule for making the dairy farm smoothly operational. You must be updated with the latest techniques of dairy cow rearing and breeding. Another of the core practices you must follow for sustainable dairy farm management is the management of waste products and by-products from the operations of the farm.

The dairy farming industry has over the past decade faced numerous and substantive changes and the scaling up for effective milk production through the expanding population in the Kenyan markets. Trends such as technological advancements in the field of animal breeding, supplements, and nutrition, cow health have made it a viable source of income for many farmers in Kenya. Though, most of the dairy farming in Kenya still practices milk production on a small scale area which has largely stagnated.

To start a profitable dairy farm in Kenya, follow these simple tips;

1. Select Suitable Breed for Dairy Farming

The successful cattle breed in Kenya is the Sahiwal, because which is capable of thriving in even the harshest environmental conditions, especially in the arid and semi-arid regions. Some local breeds like the Sahiwal are mostly the logical choices when crossed with exotic breeds. But, consult experts before you finalize whatever plan you have prepared for the dairy farm.

2. Have a Proper Plan

For successful dairy farming in Kenya, planning is key in day-to-day activities. A Detailed Business Plan and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of any dairy business endeavor are necessary. Also, you can utilize a cash flow diagram in writing out detailed and reasonable expectations and projections.

3. Proper Health Management

Ensure that you have put mechanisms in place for the early detection of diseases in farm animals. Then, this will help with immediate prevention after detection, which will also enhance the treatment regimen being rendered.

4. Recordkeeping

Recordkeeping is imperative to keep farm records on production, sales, feed sources, and breeding. Analyzing the results is key to advancing the prospects of the dairy farm business.

5. Create a Waste Management Plan

Most top dairy farmers in Kenya have robust waste management plans on their priority list. One of the essential things to consider before starting dairy farming in Kenya is waste management. If you have decided to invest in a cropping and feeding program, you can exploit the waste from the dairy farm, and which comes in the form of manure, to get better yield and maximize profits.

6. Feeding the Animals

It is advisable to cut the feed into bits to minimize wastage in the feeding process in the dairy business. Also, soak the feed with molasses soaked in water to soften it and then make it easier for the cattle to eat. If you can invest in dairy farming training in Kenya, the chances of success in this dairy sector can increase manifold because you need to have skilled and well-trained people working on your farm. The new age dairy farm owners stress the need for dairy farming record-keeping to obtain maximum efficiency in the management of the dairy farms.

Keeping records about the dairy cows and the farm is not only mandatory for meeting the legal and regulatory requirements in Kenya but records can also be useful for dairy farm management. Then, the information derived from these records can help the owners of the farms to make better and informed management decisions. It also creates scope for the owners to identify the areas of the dairy farm business which need improvement. Using the latest methods such as embryo transfer technology, milk recording, automatic milking systems, sensor technologies, and milk analyzers can boost the efficiency of the dairy farm.

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Hello, Thank you for the information.

I would like to get started with animal farming on my 10 acre parcel, and would want to enlist an experienced farmer or Vet to walk with me.

Could you please assist with some referrals.

Thank you in advance.

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Starting Dairy Farming Business Plan (PDF)

Dairy Farming Business Plan

Starting a dairy farming business is a rewarding and sustainable venture for entrepreneurs looking to make a significant impact in the agricultural sector. As the demand for dairy products continues to grow globally, the opportunity to enter this market is ripe with potential. Dairy farming not only promises a steady supply of products that are always in demand, such as milk, but it also offers the satisfaction of contributing to food security and the agricultural economy.

Milk and its products are cardinal parts of many people’s diets. This is what makes dairy farming such a lucrative livestock farming business idea. Dairy farming is a scalable business with projectable financial outlooks. It is a somewhat technical venture which requires specialized knowledge and skills. That is not a big problem though because you can always acquire the relevant knowledge and skills.  Dairy farming involves breeding cows, milking them, and selling the milk. To build a profitable, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good business management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for many farmers, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project (how many dairy cattle will you keep?); location of the milk dairy farming business, and your target market. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

Market Research

Before venturing into dairy farming, conducting thorough market research is crucial. This process involves understanding the demand for dairy products in your target market, analyzing the competition, and identifying potential customers. The supply chain is a critical aspect of your market research when starting a dairy farming business. It involves mapping out the entire journey of your dairy products, from farm to consumer, as well as the sourcing of feed and equipment. Identify the key players in the supply chain, such as wholesalers, distributors, retailers, and transportation providers, and understand their roles and requirements. Additionally, assess the sources from which you’ll acquire feed for your cattle and equipment for your farm operations. Analyze the logistics and infrastructure needed to ensure a smooth flow of dairy products, feed, and equipment from their respective sources to your farm and, ultimately, to the end consumers. A well-optimized supply chain is vital for ensuring product freshness, minimizing wastage, and meeting delivery timelines, all of which are essential for the success of your dairy business. Also calculate the initial investment required to start your dairy farm, including the cost of land, livestock, infrastructure, and operational expenses. Develop a detailed financial plan, projecting income and expenses over the next few years. This will help you determine if your business is financially viable.

Part of your essential market research is understanding the pricing dynamics of milk in your target market. You need to ascertain the current price range for milk products and analyze any variations based on factors like quality, packaging, and distribution channels. Furthermore, it’s crucial to identify your potential customers, their preferences, and purchasing habits. Determine how frequently they order dairy products and in what quantities. This information will not only help you set competitive pricing for your dairy products but also tailor your production and marketing strategies to meet the specific demands of your customer base, ensuring a successful entry and sustained growth in the dairy farming business.

Land for Dairy Cattle Farming Business

A substantial portion of land is need for dairy farming. This is because there are several things that must be accommodated. On average, between 1.5 and 2 acres must be available per cow and calf grazing. You also need a number of dairy farm structures for different purposes. For instance, you need dedicated areas for watering, waste management, equipment storage, milking processes, milk storage, feed storage, and maternity, amongst others. These can be self-contained in separate stalls, barns, or rooms, actual buildings. If there are dairy farm workers and they have to stay onsite, living quarters for them would be needed. Put all that together and factor in the number of cows to have a good idea of the total land size you would need for your dairy farm business.

Another consideration is the general climate of a chosen area. An ideal place would be where the climate promotes the growth of rich pastures. The land should have good water drainage. The soils should have good drainage as well. Those elements are critically important for infrastructural development on the dairy farm. The cattle dairy farm location should not be too close to public spaces e.g. residential areas. It is also important to ascertain that the land in question can be used for dairy farming business. Generally, there are procedures and regulations to be adhered to. Checking with the relevant local authorities is a must. Consider availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality.  Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there. 

Housing For Dairy Farm Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.  There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business. 

The housing needs for dairy farming business are informed by the different production stages. The dairy milking herd needs to be housed in its own area. They can be housed in stalls or barns which come in different designs. For instance, if you have a small dairy herd you can set up tie stalls. Typically many dairy farmers start off with what are called bedded-pack barns. These are basically enclosed sheds where there is no flooring but just the basic earth. It is usually from this that many, over time, transition or upgrade to more sophisticated dairy farm housing. When it comes to dairy cattle heifers, the hoop barns are the most common housing. Age-wise we are looking at cows between 6 months and heifers. Dairy hoop barns have different designs. One type of hoop barns has a dome-shaped roof. Another type is like a shed, one-sided with a single slope roof. There can be variations to the dairy housing depending on the size of the heifers. More tweaks become necessary as the heifers grow in size. Dairy calves can be housed in hutches. The hutches can be placed outdoors, which is typical. However, adverse weather conditions can make it necessary to place them indoors. The best indoor environment can be barns. From weaning till they are around 6 months old, you can use simple sheds. Just as long as you can provide the pasture they need. Alternatively, you can use hoop sheds. To control and streamline their feeding you can install headlocks. This will ensure they feed orderly without tussling with each other. The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. The dairy milk farm business plan should include the costs of constructing the housing.

Dairy Farm Equipment

There is a wide range of equipment needed in dairy farming business. What you will need depends on your scale or production i.e. number of dairy cows. The other factor is the level of sophistication of your dairy farming operation. At the most basic you need protective clothing such as overalls, boots, gloves, and the like. For day to operations you need equipment such as tractors, trailers, ropes, chains, and loaders. You also need feeders and drinkers – these can be items or in the form of mechanized or digitized systems.

Tags or a tagging system is needed for the dairy cows. Specialized cutters or grinders for hay (or straw) come in handy. You can also have specialized cutters or grinders for green fodder. Ventilation equipment is of importance and so is waste management equipment e.g. manure pits. Milking equipment is obviously required. You will need milk cans or tanks; depends on your capacity. Milking machines, pasteurizers, and homogenizers also come in. The cost of buying the equipment should be included in the dairy cattle farming business plan. 

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. When choosing breeding stock it is usually wise to look for purebreds. Purebreds normally have detailed information available on their breeding and ancestry history. Some of the most common breeds used in the dairy farming business are Holstein, Red and White, Jersey, Brown Swiss, Guernsey, Ayrshire, Milking Shorthorn. Other noteworthy breeds are Kerry, Dutch Belted, Dexter, and Milking Devon. The dairy farm business plan should include the costs of acquiring the dairy cattle breeding stock.

Feed And Nutrition

Feeds for dairy cattle come in two broad forms namely concentrates and forages. There are also dairy supplementary feeding options that can be considered. Concentrates (usually grain-based) are important because of their high energy and protein content. Forages are essential for the dairy cows as they are good sources of fiber and are typically legume or grass-based. Supplementary feeding of dairy cattle fills gaps that can be there nutrition-wise. For example, molasses is calcium-rich, amongst other essential nutrients. There are 3 common feeding approaches that are used. These are feeding using total mixed ratios, component feeding, and using pastures. Total mixed ratios entail proportionately mixed all-in-one meals. Component feeding as the name suggests involves feeding component by component e.g. forages, concentrates, and so on. Using pastures is by the commonly known paddocking system.

The success of your dairy milk production business is affected by the feeding system that you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy. Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. The common feeding programs of dairy farming business are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains. The feed costs should be included in the dairy farming business plan.

milk cow farm business plan

Health & Disease Management

Ensuring the health and well-being of your dairy herd is paramount to the success of your dairy farming business. A comprehensive health and disease management program is essential to maintain the productivity of your cattle and the quality of your dairy products. Regular health checks, observation of behavior, and adherence to recommended vaccination schedules are critical components of routine health monitoring. A comprehensive disease prevention and control strategy is vital. This includes implementing quarantine procedures for new animals entering your farm and biosecurity measures to minimize the risk of disease transmission. Preparedness for disease outbreaks, including isolating and treating sick cattle promptly, is crucial to prevent the spread of illness within the herd.

Proper nutrition, sanitation, and hygiene play a pivotal role in preventing diseases and maintaining herd health. A balanced diet tailored to the specific nutritional needs of your cattle, along with clean living conditions and access to clean water, are vital. In addition, establishing a strong partnership with a qualified veterinarian, maintaining meticulous records, and providing proper training to farm staff are essential for effective health and disease management. Effective record-keeping is another cornerstone of health and disease management. Maintaining detailed records of your herd’s health history, including vaccinations, treatments, and observed health issues, allows you to track trends, make informed decisions, and continuously improve your health management practices. Prioritizing these measures not only safeguards the welfare of your cattle but also contributes to the production of high-quality dairy products, ultimately ensuring the success and sustainability of your dairy farming business.

Dairy Farming Business Model

In the dairy farming business model, your primary assets are your bulls and milk cows, which are carefully managed to ensure a sustainable source of income. The process begins with the mating of these cattle, either through natural reproduction or artificial insemination, to produce calves. Once the milk cows give birth, they commence milk production, which becomes a core revenue stream for your operation. The milk produced can be sold to various markets and consumers, contributing significantly to your income.

In addition to milk production, the management of the calves born is crucial. Some of these calves can be raised to replace the breeding cattle in your herd, ensuring the continuity of your dairy operation. Others can be sold at birth, providing an additional source of revenue. To maintain the health and productivity of your herd, you’ll also need to cull some breeding cows over time due to factors like old age or poor milk production, and these cows can be sold as well. While the business incurs expenses, particularly in feed costs, the revenue generated from selling milk, calves, and culled cattle far exceeds these input costs and operating expenses, resulting in a healthy profit. This cyclical and sustainable approach ensures a continuous source of income for your dairy farming business, making it a viable and lucrative venture.

Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Keys to Profitability in Dairy Farming

Achieving profitability in the dairy farming business is a multifaceted endeavor that demands a strategic approach and a deep understanding of industry dynamics. Several crucial keys can unlock the path to profitability and financial sustainability. First and foremost, efficient herd management is essential. Selecting cattle with high-quality genetics, implementing effective breeding programs, and maintaining proper nutrition can enhance milk production while reducing operational costs. Regular health checks and disease prevention strategies are equally vital to minimize veterinary expenses and maintain overall herd health.

Optimizing feed and nutrition is another pivotal factor. Balancing your cattle’s diet with the right feed and nutrition can maximize milk production and minimize feed costs. Regular assessments of feed quality and collaboration with nutritionists can ensure that your dairy cattle receive the necessary nutrients for optimal health and productivity. Sustainable farming practices are increasingly important, not only for environmental reasons but also for cost reduction. Responsible waste management, efficient water usage, and energy-efficient facilities can lower operational expenses and appeal to eco-conscious consumers.

Controlling costs and streamlining efficiency are critical for profitability. Regularly reviewing expenses and identifying areas for cost-cutting without compromising animal welfare can have a substantial impact on your bottom line. Diversifying income streams beyond milk sales can mitigate risks associated with market fluctuations. Exploring opportunities such as selling surplus calves or producing value-added dairy products can help stabilize revenue. Effective marketing and branding, supported by a strong brand identity and customer engagement, can set your dairy farm apart in the competitive market and even command premium prices for your products.

Advantages of Dairy Farming Business

Launching a dairy farming venture comes with a host of distinct advantages that make it an appealing agricultural pursuit. Central to these benefits is the stable and unwavering demand for dairy products. Staples like milk, cheese, yogurt, and butter maintain a consistent presence in households worldwide, ensuring a dependable source of income for dairy farmers. This steady demand provides a reliable source of income, reducing the uncertainty that can be associated with other agricultural ventures. Furthermore, the potential for high returns on investment adds to the allure of dairy farming. With proper care and management, dairy cattle can produce milk for several years, providing an ongoing revenue stream. Additionally, the production of value-added dairy products, such as cheese and yogurt, can command premium prices in the market, further enhancing profitability. Dairy farming also offers diversification opportunities, allowing farmers to explore various income streams beyond milk sales. These can include selling surplus calves, producing dairy-based products, or even engaging in agritourism activities on the farm. Such diversification not only strengthens financial stability but also reduces risk, contributing to the sustainability of the business. A well-maintained dairy herd can provide long-term potential for your business. Cows can produce milk for several lactation cycles, and if managed properly, they can remain productive for years. This longevity offers stability and the opportunity to build a sustainable, generational farming legacy.

Why You Need A Dairy Farming Business Plan

A business plan is an essential tool for financial planning and management. It helps you estimate the initial capital required to start your dairy farm, including expenses for land, cattle, infrastructure, and operational costs. With a well-defined financial plan, you can budget more effectively. A dairy farm business plan is instrumental in helping you gain a comprehensive understanding of the profitability of your dairy farming business and the myriad factors that influence it. It serves as a financial compass, allowing you to assess the potential income and expenses associated with your operation, thereby providing a clear view of your farm’s profitability. Factors such as the cost of feed, veterinary care, labor, milk prices, and market demand all play pivotal roles in determining the bottom line. With this insight, you can make informed decisions to optimize profitability by identifying cost-saving opportunities, diversifying income streams, and implementing strategies to mitigate risks, ensuring the long-term financial success of your dairy farming venture. A well-crafted business plan also serves as a powerful tool for securing funding. When seeking financial support from investors, lenders, or potential partners, a comprehensive business plan demonstrates your commitment, professionalism, and a clear strategy for success. A robust business plan not only showcases your dedication but also provides prospective funders with the information they need to evaluate the viability and potential return on investment of your dairy farming business, making it a crucial asset in securing the necessary capital for your agricultural endeavor.

Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your milk cows farming business
  • As a dairy farming business proposal
  • Assessing profitability of the dairy milk production business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Risk Analysis
  • Industry Analysis
  • Market Analysis
  • SWOT & PEST Analysis
  • Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
  • Operational Strategy
  • Why some people in dairy farming business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

  • Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
  • Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
  • Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
  • Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)

dairy farming business plan pdf

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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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Get the Dairy Farming Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

milk cow farm business plan

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans  , and more business ideas .

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Dairy Farming Business Plan

small scale dairy farming business plan in kenya pdf

Introduction

Starting dairy farming business requires careful planning and preparation. Whether you are a seasoned farmer or a beginner with a passion for dairy, a well-defined business plan is crucial for success. In this article, we will explore the key components of a dairy farming business plan and provide valuable insights to help you kick-start your venture.

For well researched and approved comprehensive dairy farming business plan, click here . Dairy Farming Business Plan Guide Book

Market Research and Analysis

Before diving into dairy farming, it is essential to conduct thorough market research and analysis. Understanding the demand and competition in the dairy industry will give you a competitive edge. Here are some factors to consider:

Target Market Identification

Identify your target market for dairy products. This can include consumers, local markets, cafes, hotels, or bulk buyers.

Consumer Trends and Preferences

Stay up to date with the latest trends and preferences in the dairy market. Is there a growing demand for organic products? Are consumers seeking innovative dairy alternatives?

Competition Analysis

Study your competitors and identify their strengths and weaknesses. Analyze their marketing strategies, pricing, and product offerings. This will help you position your dairy products effectively.

“Understanding the market dynamics and consumer preferences is the key to a successful dairy farming business.” – John Doe, Successful Dairy Farmer

Business Structure and Operations

Determining the structure and operations of your dairy farming business is crucial for smooth functioning and profitability. Consider the following aspects:

Farm Size and Infrastructure

Decide on the size of your farm based on your resources and market demand. Ensure you have suitable land, buildings, housing for cows, milking parlors, storage facilities, and waste management systems.

Dairy Cattle Selection

Select the right breed of dairy cattle based on factors such as milk production, resistance to diseases, and adaptability to the local climate. Consider consulting experts or veterinarians for guidance.

Feeding and Nutrition

Develop a comprehensive feeding program to provide optimal nutrition to your cows. Include a balanced diet of forage, concentrates, and mineral supplements. Monitor their health and consult veterinarians regularly.

Milking and Milk Handling

Establish efficient milking procedures and protocols. Invest in modern milking equipment, such as milking machines, sterile containers, and cooling tanks, to maintain milk quality and hygiene.

Waste Management

Implement effective waste management systems to minimize environmental impact. Consider composting, biogas production, or recycling methods for manure and other waste products.

“A successful dairy farming business requires well-maintained infrastructure, quality cattle, and effective waste management practices.” – Jane Smith, Dairy Farming Expert.

Financial Planning and Management

Sound financial planning and management are vital for the sustainability and growth of your dairy farming business. Consider the following aspects:

Cost Analysis and Investment

Evaluate the costs involved in setting up and running a dairy farm. This includes procurement of land, infrastructure, livestock, equipment, feed, labor, veterinary services, and marketing. Develop a comprehensive budget and consider seeking financial assistance, if needed.

Revenue Streams

Diversify your revenue streams by exploring various dairy products and value-added opportunities. This can include selling milk, cheese, yogurt, butter, or even organizing farm visits or educational workshops for visitors.

Pricing Strategy

Determine competitive pricing strategies for your dairy products. Consider factors such as production costs, market demand, and competitor pricing. Strike a balance between profitability and market affordability.

Record Keeping and Analysis

Maintain detailed records of expenses, income, milk production, and other relevant data. Regularly analyze these records to identify areas for improvement, cost reduction, and increased profitability.

“Financial planning and management are crucial to make informed decisions and ensure the long-term success of your dairy farming business.” – Sarah Thompson, Dairy Farming Consultant

Marketing and Promotion

Effective marketing and promotion strategies are essential to create brand awareness and attract customers. Consider the following approaches:

Branding and Packaging

Develop a unique brand identity and packaging that reflects the quality and values of your dairy products. Strive for an attractive and professional appearance to differentiate yourself in the market.

Online Presence

Create a professional website and engage in social media platforms to showcase your dairy products. Share engaging content, recipes, farm updates, and customer testimonials to connect with your audience.

Local Partnerships

Collaborate with local businesses, such as cafes, restaurants, or grocery stores, to promote and sell your dairy products. Participate in local farmers’ markets or food festivals to reach a wider customer base.

Customer Engagement

Focus on building long-term relationships with your customers. Provide exceptional customer service, respond to feedback, and offer personalized experiences such as farm tours or educational events.

“Marketing is the bridge that connects your dairy farm to the customers. Stay creative, authentic, and focus on building strong relationships.” – Mark Johnson, Marketing Expert

A well-crafted dairy farming business plan is the foundation for success in the dairy industry. Thorough market research, proper farm infrastructure, efficient operations, robust financial planning, and effective marketing strategies will help your business thrive. Remember, dedication, perseverance, and a passion for dairy are the keys to building a prosperous and fulfilling dairy farming venture.

Now, armed with a comprehensive business plan, take the first steps towards realizing your vision of a successful dairy farming business.

“The journey of a thousand liters begins with a single cow.” – Anonymous

Note: This article is for informational purposes only. Please consult professionals in the field for personalized advice and guidance.

For  dairy farming and other farming related consultancy & training services, book for consultancy with our well trained & certified experts by clicking on the booking link . Click here to book . Dairy Farming Business Consultancy Services

External resources:

  • United States Department of Agriculture – Dairy
  • Food and Agriculture Organization of the United Nations – Dairy Farming

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Step By Step Guide To A Successful Dairy Farming In Kenya

Dairy farming is a major agricultural activity in Kenya, contributing significantly to the country’s economy. The dairy sector is dominated by smallholder farmers, who produce over 80% of the country’s milk. The Kenyan government is supporting the dairy sector through a number of initiatives, such as providing subsidies for inputs and training for farmers.

In this blog post, we’ll embark on a journey to explore the rich world of dairy farming in Kenya, delving into its benefits, challenges, types, and of course, tips on how you can successfully venture into it. Whether you’re a dairy enthusiast, a farmer seeking insights, or simply curious about the dairy landscape in this East African nation, join us as we uncover tips for profitable dairy farming.

Table of Contents

What is Dairy Farming?

Dairy farming is the practice of raising and managing dairy animals, primarily cows, for the purpose of producing milk and dairy products. In this agricultural endeavor, farmers focus on maintaining the health and well-being of their animals while optimizing milk production. The milk obtained from dairy cows serves as the foundation for a wide range of products, including fresh milk, butter, cheese, yogurt, and more.

Dairy farming involves a combination of tasks, such as feeding and caring for the animals, ensuring proper housing conditions, and implementing milking routines. The milk collected from the cows is then processed and transformed into various dairy products that are consumed by people around the world.

In Kenya, dairy farming contributes significantly to the economy and provides livelihoods for many farmers. It’s not only about producing essential food items but also about creating sustainable income opportunities for individuals and communities.

Benefits of dairy farming in Kenya

Dairy farming in Kenya brings forth a multitude of benefits that extend beyond just milk production. These advantages positively impact both farmers and the overall economy:

  • Income Generation: Dairy farming offers a reliable source of income for many Kenyan farmers. Selling milk and dairy products can provide a steady revenue stream, helping farmers support their families and invest in their farms.
  • Employment Opportunities: The dairy industry creates jobs along the entire value chain. From farm workers to milk processors and distributors, this sector contributes to reducing unemployment rates in rural areas.
  • Nutritional Security: Dairy products are rich in essential nutrients like calcium, protein, and vitamins. By producing these nutritious items locally, Kenya enhances its food security and addresses nutritional needs within its population.
  • Poverty Alleviation: Dairy farming empowers small-scale farmers by allowing them to participate in the formal economy. As farmers’ incomes improve, they can better afford education, healthcare, and improved living conditions.
  • Rural Development: The dairy sector often drives rural development by providing resources for infrastructure improvements, like roads and electricity. This enhances the overall quality of life in rural communities.
  • Livestock Management Skills: Dairy farming encourages the acquisition of animal husbandry and management skills. Farmers become adept at caring for animals, leading to improved livestock practices.
  • Soil Fertility Enhancement: Dairy manure serves as a valuable organic fertilizer that enriches the soil and enhances agricultural productivity. This closed-loop system benefits both crop and livestock production.
  • Market Access: Dairy farming can lead to the development of local and international markets for dairy products. Kenyan farmers gain access to broader consumer bases, potentially increasing their profits.
  • Economic Growth: The dairy industry contributes to Kenya’s gross domestic product (GDP) by generating revenue through milk sales, processing, and export.
  • Entrepreneurship Opportunities: Dairy farming fosters entrepreneurial ventures. Farmers can diversify into value-added dairy products like cheese, yogurt, and butter, creating additional revenue streams.

Challenges facing dairy farming in Kenya

Dairy farming in Kenya, while offering numerous benefits, also faces several challenges that can impact its sustainability and growth. These challenges include:

  • Low Productivity: Many small-scale farmers lack access to high-quality breeds, proper nutrition, and modern farming techniques. This leads to lower milk yields and reduced profitability.
  • Limited Access to Resources: Farmers often struggle to access affordable and reliable inputs such as animal feed, veterinary services, and quality breeding stock.
  • Inadequate Infrastructure: Poor road networks and inadequate storage facilities can lead to spoilage of milk before it reaches processing centers or markets.
  • Fluctuating Milk Prices: Farmers face price fluctuations due to market dynamics and seasonality, making it difficult to plan and stabilize their incomes.
  • Climate Change: Erratic weather patterns and droughts can impact the availability of fodder and water for dairy animals, affecting their health and productivity.
  • Disease Management: Diseases like mastitis and tick-borne illnesses can spread quickly among dairy animals, leading to reduced milk production and increased veterinary costs.
  • Lack of Technical Knowledge: Limited access to training and information about modern dairy farming practices hinders farmers from adopting more efficient methods.
  • Quality Control: Maintaining consistent milk quality is a challenge, especially for small-scale farmers who may lack proper milk handling and storage facilities.
  • Value Addition: Many farmers focus solely on raw milk production and miss out on the potential value-added products like cheese, yogurt, and butter that can yield higher profits.
  • Land Fragmentation: Subdivision of land into smaller plots due to inheritance can limit the space available for grazing and dairy infrastructure.
  • Access to Credit: Limited access to affordable credit hampers investment in equipment, infrastructure, and herd improvement.
  • Market Access: Farmers may struggle to access competitive markets due to distance, lack of transportation, and limited market information.
  • Policy and Regulatory Challenges: Inconsistent policies and regulations can hinder the growth of the dairy industry and create uncertainties for farmers.

How to start dairy farming in Kenya

In this guide, we’ll delve into the fundamental steps to initiate a prosperous dairy farming venture in Kenya:

Step 1: Conduct Thorough Research:

Before you start your dairy farming journey, invest time in comprehensive research. First, understand the dynamics of the local market. It is essential to understand the demand for dairy products and identify potential buyers and distributors.

Next, familiarize yourself with various dairy cattle breeds suitable for Kenyan conditions such as Friesian, Ayrshire, and Guernsey. Knowledge of proper feeding and nutrition practices is vital for maintaining the health and productivity of your cows. Additionally, educate yourself about prevalent cattle diseases and effective management strategies. Finally, navigate the legal landscape by familiarizing yourself with regulations, permits, and licensing requirements for dairy farming in Kenya.

Step 2: Create a Business Plan:

Crafting a meticulous business plan is the cornerstone of a successful dairy farming venture. Begin by outlining your goals, strategies, and financial projections. Choose an optimal farm location that boasts sufficient water availability, quality pasture, and proximity to markets. Plan your farm layout, designing cowsheds, milking parlors, and storage facilities with efficiency in mind.

Decide on the cattle breed and number you intend to start with and draft a comprehensive breeding program. Develop a feed and nutrition strategy, detailing sources of feed and supplements. Strategize your marketing and sales approach, considering how you’ll position your dairy products in the market. Finally, ensure financial viability by creating a budget and financial projections that encompass anticipated income and expenses.

Step 3: Secure Funding:

Financing is crucial for launching your dairy farming endeavor. Given the significant initial investment required, explore diverse funding options. These may include personal savings, bank loans, grants, or potential partnerships with investors. Be prepared to present your meticulously crafted business plan to potential financiers, showcasing the viability and potential of your dairy farm.

Step 4: Set Up Your Dairy Farm:

With funding secured, transition into the establishment phase. Construct essential infrastructure such as cowsheds, milking parlors, and storage facilities based on your farm’s layout. Acquire healthy and well-bred dairy cattle from reputable sources, ensuring they receive proper vaccinations and care upon arrival. Implement a balanced feeding program and source quality feed and supplements. Assemble a skilled team, including experienced farmhands and a veterinarian, to manage day-to-day operations and animal health.

Step 5: Implement Best Practices:

To ensure the sustainability of your dairy farm, adhere to industry best practices. Prioritize proper nutrition, maintaining a well-balanced diet to optimize milk production. Uphold high standards of hygiene and sanitation across your farm and equipment to prevent diseases and uphold milk quality.

Regular health check-ups for your cattle are essential, ensuring early detection and prompt resolution of health issues. Train your staff in effective milking techniques to minimize cow stress and uphold milk quality. Simultaneously, diligent record-keeping of milk production, expenses, and other pertinent farm activities will facilitate informed decision-making.

Step 6: Marketing and Sales:

Developing an effective marketing strategy is crucial for distributing your dairy products. Explore various avenues, such as local markets, dairy cooperatives, and direct-to-consumer sales. Build a reputation for quality and consistency, positioning your brand as a reliable source of dairy products.

Types of dairy farming

There are various types of dairy farming practices in Kenya, each with its own characteristics and benefits. Here are some of the common types:

  • Small-Scale Subsistence Dairy Farming: This is the most common type of dairy farming in Kenya. Small-scale farmers own a few dairy cows and produce milk primarily for their own consumption or for local sale. These farmers usually have basic facilities and limited resources, relying on traditional methods of feeding and management.
  • Medium-Scale Dairy Farming: Medium-scale dairy farms have a larger number of cows compared to small-scale farms. They often have better infrastructure, including improved housing and feeding systems. The milk produced is sold to local markets or cooperatives, contributing to both household income and the local dairy industry.
  • Large-Scale Commercial Dairy Farming: Large-scale dairy farming involves significant investment in terms of infrastructure, modern facilities, and management practices. These farms have a substantial number of cows and may use advanced technologies for milking, feeding, and health management. Milk from these farms is usually supplied to dairy processing companies on a larger scale.
  • Cooperative Dairy Farming: Dairy cooperatives are groups of dairy farmers who come together to collectively produce, process, and market their milk. This approach helps small-scale farmers access better markets and services, including veterinary care and extension services. Dairy cooperatives play a crucial role in improving the livelihoods of small-scale farmers.
  • Zero-Grazing Dairy Farming: In zero-grazing systems, cows are kept in confined spaces or stalls and are not allowed to graze freely. This method is employed to ensure better control over feeding, minimize disease transmission, and improve milk production through optimized nutrition and management.
  • Pasture-Based Dairy Farming: While less common in Kenya, some dairy farmers practice pasture-based farming, where cows are allowed to graze on well-managed pastures. This system requires more land and focuses on providing nutritious forage to the cows, which can lead to higher milk quality and potentially reduced production costs.
  • Integrated Crop-Livestock Farming: Some farmers integrate dairy farming with crop cultivation. This approach involves using cow manure as fertilizer for crops and utilizing crop residues as feed for the dairy cows. This synergy can improve overall farm productivity and sustainability.
  • Value-Added Dairy Farming: In addition to producing raw milk, some farmers engage in value-added dairy products such as cheese, yogurt, and butter. This allows them to capture a larger portion of the value chain and cater to specific consumer preferences.

These are some of the types of dairy farming practices in Kenya. The choice of farming method depends on factors such as the farmer’s resources, land availability, market opportunities, and personal goals.

In summary, starting and successfully running a dairy farming venture in Kenya can be challenging, but with but with proper planning, management, and support, you can overcome these challenges and of course, make a living from it.

As you embark on this journey, channel your passion into becoming a skilled and responsible dairy farmer, contributing to Kenya’s thriving dairy industry.

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Profitable dairy farming in Kenya

How To Start Dairy Farming In Kenya, 2022, A Profitable Business Guide

How is dairy farming in Kenya?

I know this question runs through the minds of many who have agriculture at heart in Kenya, East Africa, and even the entire Africa at large.

For an industry that provides employment, food, and income to as many as 1.8 million people in Kenya, few words can be said to perfectly describe the importance of dairy farming.

It is the most valuable agricultural sub-sector in Kenya, with a GDP contribution of about four percent (4%).

Dairy farming in Kenya has come a very long way from its initial subservient role in Kenya’s economic landscape since the 80s and 90s.

To prove its influence in the employment sector, over 80% of small-scale dairy farmers make a living, which makes a better market for the ordinary Kenyan citizen.

With the recent adoption of medium-scale dairy farming, most farmers utilize modern systems in doing an inevitably more efficient dairy farm in Kenya.

READ ALSO : Top 20 Business Ideas In Kenya For Successful Entrepreneurs .

Market Opportunities For Successful Dairy Farmers In Kenya

With the growing demand for dairy foods, both in provincial and domestic areas, there is an excellent potential for large scale milk production in Kenya.

Many farmers are adopting modern and advanced dairy farming techniques and technologies. Also, well-established systems and policies are being put in place with support from those in authority.

In fact, the entire country is now gearing towards dairy farming and its related industries.

When we include the fact that Kenya has 85% of the cattle population in East Africa, we know that there has been no better place to milk cows than Kenya.

Recommended reading: How To Start Poultry Farming In Kenya .

List Of Dairy Farms In Kenya

Here is the list of some successful dairy farms in Kenya that are making millions in revenue in the cattle industry.

  • Wilsam Dairy Farm
  • Goshen Dairy Farm
  • Rafiki Farm Ltd
  • Da Bulls Mwangaza Farm
  • Sychar Farm
  • EDFAM Dairy
  • Eldoville Dairy
  • Olumara Estates Limited
  • Meved Dairy Farm
  • Chemusian Farm Limited
  • Rayside Farm
  • Tujenge Farm
  • Sameer Agriculture & Livestock Ltd. (SALL)
  • Kinangop Dairy limited
  • Brookside Dairy Limited
  • Lattana Dairy

Steps To Start A Dairy Farm In Kenya

For you to have a successful dairy business in Kenya, you need to follow these fundamental steps:

Step 1. Market Research

Carry out surveys to determine the area and population of target buyers for your dairy products. Moreover, you need to decide whether they prefer milk or other products. This will help you maximize the profits from your investment.

Step 2. Capital and Land

Draw up a realistic plan that depicts your accessible resources and how you can use it effectively to get enough land and equipment to start.

The size of the land depends on the scale of the business, with housing, grazing areas, and waste disposal parts included. Hence, the site of your dairy farm is vital to the success of the business.

Step 3. Ecological Considerations

Before making any decision concerning your dairy farm, the relationship between the environment and the cattle should be investigated.

Step 4. Breed selection and fodder

The ecological considerations will help to determine the most successful cattle type in Kenya as well as the most plausible fodder type for forage.

For starters, consider using third or second dairy crosses instead of high-bred cattle. Also, consider growing your own feed instead of buying to save your budget of other financial expenses.

Step 5. Management Levels and Production Systems

Spend time finding the right balance between the available resource and the chosen management strategy.

In Kenya, Intensive production strategies where the cattle are enclosed for their life-cycles are favored as the more efficient system.

Also, provisions for labor should be considered, outsourcing some services are cheaper than doing them yourself. This way, you do yourself the favor of not trying to do everything yourself and focus on what only you can do.

Related article: Complete List Of Farming Opportunities In Africa .

Tips For A Successful Dairy Farm Business In Kenya

To start a smart and profitable dairy farm in Kenya, follow these simple tips:

1. Select Suitable Breed For dairy Farming

The most successful cattle breed in Kenya is the Sahiwal, which is capable of thriving in even the harshest environmental conditions, especially in the arid and semi-arid regions.

Local breeds like the Sahiwal are mostly the logical choices, especially when crossed with exotic breeds. Nevertheless, consult experts before you finalize whatever plan you have prepared for the dairy farm.

2. Proper Health Management

Ensure that you have put mechanisms in place for the early detection of diseases. This will help with immediate prevention after detection, which will also enhance the treatment regimen being rendered.

Create and implement a vaccination program as well as deworming and scheduled dipping control processes.

3. Recordkeeping

It is imperative to keep and update farm records on production, sales, feed sources, purchases, and breeding.

Analyzing the results is key to advancing the prospects of the dairy farm. Unfortunately, recordkeeping is not prioritized among those engaged in dairy farming in Kenya .

4. Feeding The Animals

It is advisable to cut the feed into bits to minimize wastage in the feeding process. Also, soak the feed with molasses soaked in water to soften it and thus make it easier for the cattle to eat.

Things You Should Consider Before Starting A Dairy Farm In Kenya

Here are some of the things you should consider once you start a dairy business in Kenya:

Have A Proper Plan

For a successful dairy farming in Kenya, planning is key in your day-to-day activities.

A Detailed Business Plan and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of any business endeavor is necessary.

There is simply no room for risk in any business establishment, and dairy farming is no exception.

Don’t leave anything to chance.

You need to have a clear and spelled-out idea of the size of your cow herd, your target market, your labor, and employment strategy as well as your expenses.

You can utilize a cash flow diagram in writing out detailed and reasonable expectations and projections.

Create A Waste Management Plan

Most top dairy farmers in Kenya have robust waste management strategies on their priority list.

That is a fact!

One of the most essential things to consider before starting a dairy farm in Kenya is waste management.

If you have decided to invest in cropping and feeding program, you can exploit the waste from the dairy farm, which comes in the form of manure, to get better yield and maximize the profits.

Pasture Management In Kenya

There are a lot of identified issues with pasture management in dairy farming in Kenya.

One of which is the effect of overgrazing, which leads to terrible plant growth. Also, due to the insufficient DMI (dry matter intake) or inadequate supplemental feeding, the cattle might develop poor reproductive abilities among other probable problems.

Also, parasites have mainly contributed to the headaches of most small scale dairy farmers all over Kenya. That is why it is widely advocated that farmers watch the nutritional value of the feed offered.

It is wise to include plants with high tannin content like brambles, birdsfoot trefoil, and chicory while improving soil fertility through compost to reduce parasite loads.

Milking The Cow

It’s ridiculous to think that one would forget to do the most significant thing that principally yields the primary income of an investment.

But don’t take things for granted. Ensure that you milk your cows at fixed times, following a strict and prudent procedure. Milking your cows two (2) to three (3) times every day should be enough .

Recommended reading: How To Start Snail Farming In Nigeria .

Dairy Farming Equipment

The most essential tools and equipment you must procure to start a dairy farming business in Kenya include:

  • Milking Machine
  • Chaff Cutters
  • Parasite Control items like Knapsack Sprayers
  • Milk Strainers and Milk Churns

Smart Dairy Farming Job Opportunities In Kenya

There are other job opportunities that have contributed to most of the success stories of dairy farmers in Kenya.

Dairy farming is not an industry meant for the dairy farmer alone. It employs the efforts and services of various people for different reasons.

Some of these include milk transporters, milk and manure traders and vendors, the staff of dairy associations.

Not only that but also milk processors (small and large scale), farm input dealers and service providers as well as retailers and distributors are all job opportunities created by dairy farming in Kenya.

Processing Dairy Products

The largest population of Kenyans favor raw milk because it is cheaper than processed milk, by about 20 to 50 percent.

It has a unique taste with high nutritional content. In fact, 85 percent of marketed milk is sold raw, even with the health risks it presents.

Processing dairy products in Kenya can create massive employment for the teeming youth in the country.

Cost Involved In Setting Up A Dairy Farm In Kenya

Setting up a dairy farm in Kenya is extremely capital intensive . The cost of the cattle itself is usually between 50,000 – 100,000 KSh, with the price variability dependent on the milk-producing capability and breed of the cow.

But those are not the only costs to consider. The land and equipment, as well as the construction of the various fundamental structures, will add to the costs depending on your business plan.

You would also have to consider the costs of labor which could cost a maximum of 4,000 Kenyan Shillings every month.

How Profitable is Dairy Farming in Kenya?

Dairy farming is an attractive investment in the private sector due to its steady income. With a Sample of six cows in milk, it could cost between 10-12 KSh for producing one kg of milk.

An investment that can yield up to 120,000 KSh every month for 150 -170kg of milk produced every day. Out of which a profit of up to 60,000 Kenyan Shilling can be realized.

Also, at the same rate, 5,000 – 6,000 KSh can be achieved from selling manure.

This simple and easy article Was Last Updated on December 6, 2022 by Nana Abrokwa

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Sustainable practices for small-scale dairy farming in Kenya

Sustainable practices for small-scale dairy farming in Kenya

Without a doubt, small-scale farming and small-scale dairy farming in particular, is an important source of livelihood for many Kenyan households. However, dairy farmers in Kenya face numerous challenges, including low productivity, high input costs, and environmental degradation.

To address these challenges, it is essential for small-scale dairy farmers in Kenya to adopt sustainable practices that enhance their productivity, reduce costs, and protect the environment now and for the future. Some of the key sustainable practices that small-scale dairy farmers in Kenya can adopt include:

  • Improved breeding and genetics: One of the main challenges facing small-scale dairy farmers in Kenya is low milk production. This is often due to the use of low-yielding breeds and poor genetics. To increase milk production, small-scale dairy farmers can invest in improved breeds of dairy cows that are more resistant to diseases and produce higher yields. They can also adopt artificial insemination techniques to ensure that their cows are bred with high-quality genetics.
  • Improved feeding and nutrition: Adequate and balanced nutrition is essential for the health and productivity of dairy cows. Small-scale dairy farmers can improve the feeding and nutrition of their cows by using a mix of forages, concentrates, and supplements. These products are available at our Feed and Fodder shops across Kenya. They can also adopt feeding strategies such as rotational grazing and supplement feeding to ensure that their cows have access to a varied and nutritious diet.
  • Improved health management: Disease prevention and control are crucial for the health and productivity of dairy cows. Small-scale dairy farmers can adopt good health management practices such as vaccination, deworming, and parasite control to keep their cows healthy. They can also adopt biosecurity measures such as quarantine and isolation to prevent the spread of diseases.
  • Improved milk processing and preservation: Small-scale dairy farmers in Kenya often face challenges in getting a fair price for their milk due to poor milk quality and inadequate processing and preservation techniques. To improve milk quality and increase the shelf life of milk, small-scale dairy farmers can adopt good milk handling practices such as clean milk production, pasteurization, and packaging.
  • Improved waste management: Small-scale dairy farming can lead to environmental degradation if proper waste management practices are not followed. To reduce their environmental impact, small-scale dairy farmers can adopt waste management practices such as composting, recycling, and waste segregation. They can also use manure as a natural fertilizer to improve soil fertility and reduce the need for chemical fertilizers.
  • Improved water management: Water is an essential resource for dairy farming, and its availability and quality can impact the health and productivity of dairy cows. Small-scale dairy farmers can adopt water management practices such as rainwater harvesting, irrigation, and the use of drip systems to ensure the availability of clean and adequate water for their cows.

In conclusion, small-scale dairy farming in Kenya plays a vital role in the country’s economy and provides livelihoods for millions of people. To enhance the productivity, profitability, and sustainability of the sector, small-scale dairy farmers in Kenya must adopt sustainable practices such as improved breeding and genetics, improved feeding and nutrition, improved health management, improved milk processing and preservation, improved waste management, and improved water management. By adopting these practices, small-scale dairy farmers in Kenya can not only improve their own livelihoods but also contribute to the development and growth of the country’s dairy industry.

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How To Start A Dairy Farm Business In Kenya With Low Capital

How To Start A Dairy Farm Business In Kenya With Low Capital

WDairy farming in Kenya is among the top best Agribusinesses in Kenya that is really transforming lives of many. If you are always passionate about dairy animals then this dairy farm will work well for you.

Successful dairy farming in Kenya requires various skills and passion that will help you in running your dairy farm. Success stories of dairy farming in Kenya prove that this is the business that one should look forward to venturing into.

There are two types of dairy farming: Large scale and small scale dairy farming in Kenya.

 If you have a minimum capital and a beginner, it is recommended that you start with small dairy farming in kenya.

Here is the procedure on how to start a dairy farm in Kenya:

Step 1. Do a thorough market research that will help you know how to supply your dairy products.

Step 2. Write a tactical dairy farming business plan in Kenya that will help you have strategies in achieving the best.

Step 3. Taking great ideas from Dairy Farming experts that will help you run your dairy farm.

Step 4. Do an in depth research on the breed and species of dairy cows that yields quality dairy products.

Step 5. Have a strategy on the health care and management plan that will back you up in case of health issues.

Step 6. Apply for your dairy farming business license and other permits.

May your dairy farming business be successful at the end of the tunnel.

Cost of Starting Dairy Farming In Kenya

The cost of starting a dairy farming in Kenya ranges from Ksh.100,000 to Ksh.1,000,000.

The more the animals you intend to rear, the higher the starting cost.

Besides, one dairy cow that is high breed and of high production goes for an average of Ksh. 50,000 to Ksh. 100,000.

You also need to create a conducive environment for the cows, have someone to offer help and get enough feeds plus water. Veterinary services are a must to succeed as a dairy farmer.

List Of Dairy Farms In Kenya

The following as just a few of the successful dairy farms in Kenya:

1. Gathanji Farm in Kiambu.

2. Ruai Tharuyu Farm in Nairobi.

3. Dairy Pesa Farm.

4. Tassells Dairy Farm in Ruiru.

5. Cowsoko Farm.

Venturing into Dairy farming business is the best and you will not regret your decision. Its returns are always top dope. Invest more in your business to enjoy more profits.

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Kenya: Meet the young entrepreneurs milking opportunity in the dairy sector

Kenya: Meet the young entrepreneurs milking opportunity in the dairy sector

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small scale dairy farming business plan in kenya pdf

Keeping livestock is a lifeline for hundreds of millions globally

small scale dairy farming business plan in kenya pdf

Domesticated animals bring people nutritious meat, milk and eggs. They bring income when money is scarce and provide crop farmers with draught power. Livestock provide young people with jobs and other income opportunities

small scale dairy farming business plan in kenya pdf

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small scale dairy farming business plan in kenya pdf

Can young people tap the growing opportunities of dairy intensification in Kenya and simultaneously curb harmful greenhouse gas emissions?

Back when Samuel Ndung’u needed a laptop to help him in his high school studies, he didn’t go to the bank. He didn’t get a loan, or ask his parents for money. Instead, he sold his first cow. Like more than a third of young Kenyans looking for job opportunities, Samuel, now 28, lives on his family farm, in his case a neat homestead owned by his grandmother and occupied by several generations in the country’s biggest milk-producing county, Kiambu, on the outskirts of the Kenyan capital, Nairobi. 

small scale dairy farming business plan in kenya pdf

Samuel’s day, every day, starts at 5 am. He milks his grandmother’s cow and two of his own cows, fills and drops off aluminium milk cans at the bustling milk collection depot and then goes back home to make milky sweet tea for the family. He chops up feed for the cows and feeds the chickens. 

On average, Samuel delivers 35 litres of milk a day to nearby cooperatives, making a profit of USD 200 during peak dairy seasons. Milk and eggs provide for his family’s daily meals. In the afternoon, he sets aside time to build a new cowshed and what will eventually be a small house for himself, on land allocated to him by his grandmother near the family house.

It wasn’t always like this. In an earlier stint working as a sales assistant in Kiambu, Samuel put in late-night shifts of 14 hours or longer. Earning a basic salary of USD 73 a month, with long periods away from his family, he had a career re-think. 

Like thousands of other young Kenyans, Samuel decided to become a dairy entrepreneur instead. Dairy is a big opportunity in Kenya. Kenya’s cows produce over 3.5 billion litres of milk a year. Kenyans consume more milk than people in any other country in Africa, and the demand for dairy products is on the rise. By 2030, Kenya is likely to become a net dairy exporter. 

small scale dairy farming business plan in kenya pdf

Tapping into the country’s large and growing dairy opportunities, Samuel now makes more money than ever before, and while looking after his cows every morning and afternoon, has time to do other things.

‘Imagine how many people in this country drink milky tea every morning and every afternoon’, he says, making his way through his small plot, carrying a handful of forage for his cows. ‘All those people need milk. That is a lot of milk. For young people like me, who start out with nothing, that is a great opportunity.’

Samuel’s semi-urban farm setting helps. His grandmother’s lush green farm is near dairy cooperatives that buy their daily milk, good roads, electricity infrastructure and water supplies.

small scale dairy farming business plan in kenya pdf

After feeding his cows, Samuel takes off his boots at the kitchen door and lights the stove for morning tea. The gas, he explains with a grin on his face, comes from a biogas digester he fitted in the garden, where bacteria break down excrement from his cows. He bought it with the money he made from selling two cows, which he named ‘Gas’ and ‘Cooker’.

Every morning, after cleaning out the cowshed, he mixes the cow manure and urine into the biogas filter with his hands. ‘Some people say you stink after doing this work’, he says. ‘This heats up my water for bathing, so I don’t mind.’ 

But Samuel faces crippling threats, too. With limited control over the animals, which belong to himself and his grandmother, he  doesn’t own land and has little money to invest. He has ‘side-hustles’, like repairing computers. But he still depends on his family, who for the most part have supported him morally and financially.

small scale dairy farming business plan in kenya pdf

‘Sometimes people fear change’, he says, reflecting on the cynicism he faced when he asked for money to invest in the biogas digestor. ‘[My family] wondered if this would add up. Now everybody enjoys [going] into the house, lighting a match and having fire to make tea and cook with.’

Not everyone is so lucky to have Samuel’s family support. A four-hour drive away, in the hilltop town of Nakuru, 31-year-old Lilian Satia starts her day. She knows Samuel through a workshop, but their lives are very different.

Lilian is a wife and mother of three. At 5am, she wakes up to make breakfast and get her children ready for school. She cooks, cleans and manages the house. As dawn breaks, she heads down a tarmac road in thick morning mist to a local milk bar.

small scale dairy farming business plan in kenya pdf

Reaching the milk bar—a small shop with blue doors serving as both a milk collection and sales point for dairy farmers and a shop for customers to buy milk—she swings open the window in the wall, revealing a hive of activity. Bicyclists ride up to drop off aluminium milk cans while a small queue of customers forms.

Deftly pouring a fresh ladle of milk into a bottle for a customer at the hatch, she explains why she and nine other young people started the initiative, which is part of a larger cooperative. ‘Women do suffer a lot. All the work belongs to women here. But the money belongs to men’, she says.

small scale dairy farming business plan in kenya pdf

Typically in smallholder Kenyan dairy farming, men keep the money made from selling the morning milk and women get the evening milk money—about half that of the morning sales, she explains. ‘[Milk] prices were not so good in the past and people [were] not paying us for the milk they bought.’

Lilian and a group of nine other youth founded the milk bar as part of a youth group initiative supported in part by a Smallholder Dairy Commercialization Programme of the International Fund for Agricultural Development.

‘We came up with the idea of a milk bar. We started delivering our own milk; then the demand began to rise. The milk bar has been a way to keep control of our income. I know when customers pay and how much’, she says.

Lilian knows she is going against cultural expectations by becoming a ‘milk entrepreneur’. Most women in this area don’t own cows or make decisions about the income their household’s cows generate. But while farming may be considered ‘dirty’ work by some, it has provided her with welcome income, in an area where jobs are few. 

small scale dairy farming business plan in kenya pdf

Stirring a pot of beans and carrots, as smoke drifts around the kitchen, Lilian explains that she is well aware of the cultural hurdles she is up against as both a young person and a woman. Things were not that different for her 67-year-old mother-in-law, Serah Nganga, who lives next door and helps Lilian occasionally with preparing food for the evening meal.     

Serah runs a kiosk selling sweet-smelling  mandazis   (donuts), soap, flour, potatoes and other basic goods. Arranging some boxes on a shelf, she rests thoughtfully against the shop counter and reflects on her experience. 

Cooking, fetching firewood, making open fires for cooking and breathing in smoke fumes, working hard both in the home and on the farm—‘Women are the pillars of the household’, she says. ‘It’s hard work.’

small scale dairy farming business plan in kenya pdf

Back on the farm, Lilian disappears into the kitchen and emerges with rosemary-infused tea. Setting it down under the shade of a tree, she chats with a visitor—Lydia Kimachas—an extension worker from the Kenya Ministry of Agriculture, Livestock and Fisheries’ Department of Livestock Production.

Lydia is passionate about supporting young people like Lilian and Samuel in their ventures. But she knows they need the right kind of support to thrive.

‘For youth, one of the main challenges I see is lack of ownership of land and animals. They often have access to land, but if they don’t have ownership, they can’t make decisions about what to do with the land and the cows. And they can’t afford to buy their own assets.’

small scale dairy farming business plan in kenya pdf

‘I’d like to see more [youth] involved in agriculture and more successful’, she says, watching Lilian as she dashes off to cut grass to feed to her two cows. ‘This will take a lot of support from our government and a lot of initiative from our youth.’

Part of that support, Lydia believes, must come from agricultural extension workers who can connect young people to sources of credit or information. Mobile phones have filled this gap to some extent. But good-quality local knowledge is still lacking.

small scale dairy farming business plan in kenya pdf

On her rounds, Lydia visits 37-year-old John Ngasha and his wife, 34-year-old Annie Ngugi, who run a farm outside Nakuru. A construction worker most of the time, John has a big and infectious smile.  

He greets Lydia warmly under the shade of a tree. She has previously helped him navigate a sea of information to improve his small dairy business. He started off by buying two bulls, which he later sold for three dairy cows, so he can now sell milk.

‘I started this with little’, he says, glancing over at his three cows. ‘Sometimes I had no money at all. My family likes to drink milky tea. Ashamed that I had no money to buy milk, I decided to start keeping cows to have milk and to earn some money.’

small scale dairy farming business plan in kenya pdf

‘I use Google to get knowledge’, he says, his smile growing into a grin as he flips open a smartphone from his pocket. He scrolls through a Farmer’s Guardian ‘meet the breeder’ video episode, highlighting prize-winning stock and what breeders look for in a champion breed.

Lydia has helped John adapt some of this information for his small farm. His books are in ‘excellent condition’, she says, leafing through the reams of notes and meticulous records John has kept to improve his animal stock and fetch more milk and income.

small scale dairy farming business plan in kenya pdf

But John ‘borrows’ this land from his aunt who has emigrated, so he can’t grow feed on it. And while his three cows munch through 8kg of feed a day, costing around USD 2.70 a day, he earns just USD 4.81 daily from the milk they produce.

‘When you calculate what you have put in [keeping] the cow and what you are getting, it is very little. But I will try my best.’

small scale dairy farming business plan in kenya pdf

Renee Bullock, a gender specialist at the International Livestock Research Institute (ILRI), says these stories highlight a familiar struggle among young entrepreneurs. ‘Youth come into dairy for a whole variety of reasons’, she says.

‘And they each need different kinds of support. Some use dairy farming as a way to earn money after finishing school, or as a stepping stone to bigger opportunities such as dairy processing, or simply because getting a white-collar job didn’t work out.

‘But after investing heavily in their children’s education, Kenyan parents often expect their sons and daughters to pursue jobs outside of agriculture’, she notes. And young people often find themselves up against hierarchies and assumptions around what young men and women should do for their careers.

Yet around 80 per cent of Kenya’s dairy sector is made up of small-scale, informal dairy producers. Without support, high production costs and rising consumer demand for higher grade milk threaten to cripple small-scale dairy entrepreneurs.

Change could be on the horizon. With increasing pressure to pursue ‘low-carbon’ agricultural development in Kenya, support for dairy farmers who can help reduce harmful greenhouse gas emissions from their cattle is increasingly likely at the policy level.

small scale dairy farming business plan in kenya pdf

Low animal productivity and low-quality feed make livestock greenhouse gas emission intensities higher in Africa than anywhere else. So supporting dairy farmers with improved feed and other strategies that lower their animals’ emissions is critical.

But Todd Crane, an anthropologist at ILRI, says meeting low-emission targets and reducing greenhouse gas emission intensity can be balanced with an inclusive approach to social benefits of low-emission development.

small scale dairy farming business plan in kenya pdf

‘When we look at low-emission dairy practices, there is often little discussion about social distribution of benefits. Yet our research shows that intensification in agriculture and livestock development can tend to disenfranchise women, for example. 

‘We want to give everyone—youth and adult men and women—options to make agriculture a viable livelihood. But to lower emissions intensities without creating more problems than we solve, explicit goals need to contain social inclusion targets alongside environmental targets.’

small scale dairy farming business plan in kenya pdf

Some young small-scale dairy entrepreneurs like Samuel have already made the switch to this kind of more efficient, low-emission agriculture. But many more will require support to tackle the cultural, social and financial obstacles that stand in their way.

Meanwhile, farmers like John are doing everything they can to make ends meet. For them, dairy farming is one way out of poverty. Without financial assistance, his dream to become a dairy processor seems a long way off. But that won’t stop him. ‘I won’t give up’, he says.

small scale dairy farming business plan in kenya pdf

CGIAR Trust Fund

Renee Bullock

Senior Scientist

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IMAGES

  1. Building a sustainable dairy sector in Kenya

    small scale dairy farming business plan in kenya pdf

  2. Farm Business Plan

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  3. Dairy Farming in Kenya 2020 Update

    small scale dairy farming business plan in kenya pdf

  4. My secret to running a profitable small-scale dairy farm

    small scale dairy farming business plan in kenya pdf

  5. Dairy Farming In Kenya

    small scale dairy farming business plan in kenya pdf

  6. business plan for dairy farming

    small scale dairy farming business plan in kenya pdf

VIDEO

  1. Small Scale Dairy Farming

  2. Kiambu dairy farmers are likely to lose Ksh. 145M project from World Bank

  3. Modern dairy farm visit in Kenya

  4. Large scale dairy farm team plan done for the week ahead✅

  5. | Farming Simulator 22

  6. Small scale dairy farming II Interview of a small farmer I Investment and profit margins on 10 cows

COMMENTS

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  5. Step By Step Guide To A Successful Dairy Farming In Kenya

    Small-Scale Subsistence Dairy Farming: This is the most common type of dairy farming in Kenya. Small-scale farmers own a few dairy cows and produce milk primarily for their own consumption or for local sale. These farmers usually have basic facilities and limited resources, relying on traditional methods of feeding and management. Medium-Scale ...

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    Each production level of animals requires different quantities of concentrates and the Vet gives a formula you can use to mix the concentrates for your cows. "X minus 5 divided by 2. For example ...

  12. Sustainable practices for small-scale dairy farming in Kenya

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    practices and dairy enterprise management practices. Furthermore, the programme sought to increase dairy producers' access to the processing sector and to improve the linkages of small-scale milk producers, traders and processors with local milk markets. To this end, the project invested in improving market infrastructure,

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    How to start dairy farming in Kenya. Step 1: Choose the right location. Step 2: Invest in good-quality cows. Step 3: Build a barn. Step 4: Provide your cows with good-quality feed. Step 5: Milk your cows regularly. Step 6: Sell your milk. Government support for dairy farming in Kenya. Tips for successful as a dairy farmer in Kenya.

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    Overall, the cost of starting a dairy farm in Kenya can range from KES 500,000 to KES 5,000,000 or more, depending on the size and scale of the operation. It is important to have a solid business plan and budget to ensure that you have enough capital to cover these costs and operate your dairy farm profitably.

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    Like thousands of other young Kenyans, Samuel decided to become a dairy entrepreneur instead. Dairy is a big opportunity in Kenya. Kenya's cows produce over 3.5 billion litres of milk a year. Kenyans consume more milk than people in any other country in Africa, and the demand for dairy products is on the rise. By 2030, Kenya is likely to ...

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