Camel Milk Value Chain Development- SNV and Partners experience

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Camel Milk Value Chain Development- SNV and
Partners experience

• Agriculture Sector Working Group Meeting,
• By Morgan Siloma, Economic Development Advisor

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What will be covered!

• Introduction to SNV
• Understanding the Camel Milk Value Chain
• Challenges faced by the CMVC
• Tapping the potential of the Chain
• What is happening? Who is doing what?
• Preliminary results
• Future investments

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SNV-Who are we?

• A Dutch based development organization, working
  in 33 developing countries worldwide.
• Mission
• SNV is dedicated to a society where all people
  enjoy the freedom to pursue their own
  development. We contribute to this by
  strengthening the capacity of local actors.
• Goal
• To support local actors to strengthen their
  performance in effectively realising poverty
  reduction and good governance

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SNV contd

• Eliminating poverty is also about strengthening
  peoples ability to provide solutions to their
  problems and make informed choices( empowerment).
• We align our strategy to local intentions to
  catalyze local capacities thro
• Supply of advisory services to Gov, CSO, Private
  sector
• Building capacities of Local Capacity builders to
  sustain the capacity services
• Catalyzing Local mechanisms for support to
  capacity development( LCDF)
• Developing and brokering knowledge relevant for
  poverty reduction
• Facilitating international level advocacy

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SNV Contd

• SNV capacity development services aim at
  improving the lives and livelihoods of
  disadvantaged men and women thro
• Economic development aimed at increasing
  production, incomes and employment (VCD, Agric
  and Livestock)
• Access to basic services aimed at increasing
  efficiency, effectiveness, accountability and
  responsiveness in the delivery of basic services(
  WaSH, EDUC, RE)

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SNV and Dry lands

• SNV has a long history in ASALs (significance in
  land mass, over 75, poverty prevalence, 70 of
  popn live below poverty level)
• SNV implemented several projects then
  (PADEP/SARDEP, PEDDEP) and now capacity
  development in Basic Services and Economic
  Development
• Livestock as key economic resource- up to 71 of
  meat from ASALs ( also 100 of camel population
  in ASAL)
• ASAL accounts for all camel milk production in
  Kenya- SNV VCA study(2008) puts camel milk
  industry value at Ksh 8 billion

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The Camel Milk VC

• 19 million camels in the World, 15 million in
  Africa 4 million in Asia
• Kenya 5th camel herd in the world - 1.06 million
• Camel milk production in 2007 340 million litres
  valued at about Kshs 8 billion (100Million USD)
• Isiolo - 7th in camel pop in Kenya 40,460 in
  2007 12 of camel milk reaches terminal market
  i.e. 5,000 lts

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unavailability of appropriate processing methods
Lack of market orientation among camel keepers
Inefficient transport and storage
Challenges for commercialization
Poor hygienic practices
Lack of standards and quality measures
Public health risks
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Synopsis of Camel milk Supply chain

Camel milk Producer
Anolei Women group
Isiolo and its environs
Wholesaler
Consumers
Retailers
Nairobi
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Camel Milk characteristics

• High Camel milk price in the informal milk market
  
• Superior keeping quality (shelf life) - allows it
  to be supplied to distant urban markets.
• Medicinal qualities of camel milk- on diabeties,
  autism immunity, stomach cleansing infectious
  diseases e.g. tuberculosis
• Unhygienic milk handling practices along the
  chain result into spoilage of milk and lower
  income.
• Traditional consumers who dont mind the quality

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Uniqueness/importance of camel milk chain

• Food security -second god
• Medicinal value Juvenile diabetes autism
• The chain is highly informal trading between
  family clan relationships
• Trading in raw camel milk
• The chain is dominated by women

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Isiolo camel milk Value Chain
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Tapping the Camel Milk potential!

• Camel milk hygiene trainings, investment in RE
  cooling systems, transport
• Camel milk health and production feeds,
  vaccines
• Enterprise development turning groups into
  enterprises
• Marketing tapping into the BOP, demand?,
  nutrition value of camel milk, Kenya CMVC
  analysis
• Knowledge development Research and sharing what
  is working, inform Policy

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SNV and Camel milk

• SNV started off with VCA of camel milk in 2008
• UNIQUE SELLING POINT Its Medicinal Value!
• key issues highlighted in the VC analysis
• Fluctuating/seasonality in milk productivity
• Low hygiene practices and quality of milk
• Poor business orientation of camel producers
• Limited market development
• Limited infrastructure and almost absence of
  policy space.
• Limited collaboration between chain actors

SNVs Focus has been on enhancing efficiency in
the supply and marketing of the camel milk value
chain.
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Camel milk strategies

• Commercialization of the camel milk chain i.e.
  organize traders groups into a cooperative
  linking with private sector (processor financial
  entities etc)
• Enterprise development i.e. strengthening Anolei
  cooperative manage business entity enhance
  efficiency of the chain e.g. bulking support to
  management of the camel milk bar

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What is happening?

• There are pilots in various counties e.g.
• KCA Strategic plan - national, producer group
  strengtheing, identifying new markets etc
• Camel milk Value chain - Isiolo
• CARE, KLMC etc in Garrissa
• SNV, VSG-S, PACIDA, FHK in Isiolo, Marsabit
• Research i.e. KARI- innovative transportation,
  VSF-Suisse hygiene along the chain
• Next move - CONSOLIDATION

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Market trends in the chain

• Supply 3,000-6,000lts i.e. about 12-15 of prod
  new - 1,000 to 2000lts coming from south
  Kajiado creates competition
• Price Average 60-80 ksh per lt
• Women engage in trading not production
• 3 market segments
• a) Traditional market Anolei cooperative
• b) High-end Vital camel (500lts)
• c) Emerging segment (BOP) Halleeb, UCP

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Preliminary Results

• Camel milk recognized through government policy
• Hygiene risk analysis along the chain (KARI,
  VSF-SWISS)
• Develop training program on hygiene practices,
  testing of quality and grading system along
  supply lines to end market (with VSF Swiss, FAO)
• Formation of a women camel milk cooperative
• Increased supply of camel milk e.g.
  5,000-6,000lts supplied from Isiolo, milk from
  Kajiado
• A camel milk bar opened in Isiolo
• New small scale processors Vital, Haleeb, UCP
• Use of aluminium cans 50 adoption

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Future investments

• Government MOLD
• FAO ICDRR SNV, VSF-Suisse
• EU KRDP SNV, KLMC, ILRI ????
• EAAP KCA
• USAID CARE, CNFA KLMC

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Key lessons and challenges

• Highly socially organized value chain, need time
  to find entry points
• There is overwhelming potential for incomes-
  appropriate business models, structural
  challenges of pastoral production systems
• Need to collaborate with other partners to add
  value (High interest)
• Requires time investments/ consistency/nurturing
  to understand VC, build relations and reap
  benefits.

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Future vision

• Processing of camel milk

Brookside dairy camel milk partnership
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Thank You!!!