The Limits of Success: The Case of the Dairy Sector in Kenya

Policy Brief 14
By Rosemary Atieno

By most accounts the dairy sector in Kenya has been a long-term success story. In many respects it can be viewed as a classic ‘new’ agriculture case. It is smallholder based, integrated with the private sector, commercially oriented, and with wide pro-poor benefits (Leksmono, et al. 2006, Ngigi 2005, Hooton 2004, Republic of Kenya 2005). According to Ngigi (2004), more than 600,000 small-scale farmers produce milk, using dairy cows of improved breeds. Annual net earnings from milk sales are estimated at US $370 per year per household. Those holding between one and three cows produce 80 percent of Kenya’s milk, and the poorest group earn around half of their income from milk sales.

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