The multi-million project, is being implemented on a co-financing arrangement with OSIEPE contributing 45% of the total project costs and managing the 1-year grant. The grant comes in handy as final touches are made to the new bulk chilling plant in Muhoroni – see separate story on "final touches on chilling plant". To improve incomes for households engaged in dairy farming and open additional livelihood opportunities for more households in Muhoroni sub-county, OSIEPE CBO will invest the grant in two related and complementary business lines: | |
Business line 1: Milk bulking and sales through a value chain coordination system that will:
- Recruit over 1,000 dairy farmers from Muhoroni sub-county and its environs to supply milk to the chilling plant.
- Establish over 20 milk collection zones/blocks
- Contract motorbike owners for a youth-led smart motorbikes fitted with smart phones and solar mini-coolers
- Bundle milk procurement with input supply and extension service provision to guarantee enhanced productivity and marketable surplus.
- Support pasteurization of aggregated milk and sale via multiple channels
- Purchase various milk handling equipment and install milk dispensers at strategic locations in Muhoroni, Chemelil, Awasi, Ahero and Kisumu.
Business Line 2: Production and marketing of fodder
To complement the milk marketing component, the project will implement a commercial fodder production business involving:
- Provision of quality planting material, advisory services and harvesting services
- Bulking and sale of hay involving mechanized hay processing, constructing hay barns and coordinating collection and sales.
- Seedling production and sales by establishing fodder nursery for seedling sale
- Purchase and hire of fodder production, harvesting, baling and transportation equipment and machinery
The project has come at a good time when OSIEPE, in pursuing its strategic plan and various value chain business plans, was gearing for multiple investments. Already procurement has begun for necessary equipment such as pasteurizer, other equipment, milt testing supplies, machinery and staff (see story elsewhere on job opportunities for plant manager, accountant, dairy technologist and extension officer). We have embarked on training and resourcing for dairy producers, AI service providers, transporters and sales agents. This will be an on-going process beyond the implementation period. The project will also support hub management, digitization of dairy and fodder operations and improvement of access to technology and markets by farmers in the County. OSIEPE appreciates the immense support from USAID in making this dream come true. This is a reflection of the confidence the agency has on OSIEPE as a model community-led transformation hub and builds on past partnerships with ILRI/AVCD, County Government of Kisumu, Heifer International among others.