KMDP-II has an Innovation & Investment Fund that provides financial contributions to feasibility studies, demo and pilot projects and innovative business cases. SNV/KMDP-II encourages applications and proposals from Dutch companies or their representatives in Kenya, and/or from Kenyan companies who wish to collaborate and partner with Dutch investors, technology and/ or knowledge providers. Thereby aiming at innovations and best practice solutions through transfer of knowledge, skills, products and services and – preferably - cross border investments.
The preferred thematic areas are in dairy farm management (including farm economics and farm recording), dairy services and inputs including practical training and dairy advisory, supply chain management, milk quality and feed and fodder solutions.
KMDP has built up rich knowledge and experience as regards good practice forage production and preservation for smallholder, medium and large scale dairy farms (from seed to feed). In addition to that, it has successfully piloted commercialization of quality forages and of forage contracting services. This was achieved through the SPEN model and the concept of “maize train” (i.e. mechanized agricultural contracting services for maize production, harvesting and silage making), and by facilitating introduction of innovative machinery for making baled silages. Through replication and upscaling, this will ensure enhanced access of quality forages for small medium and large-scale dairy farms.In 2018 KMDP-II also started a pilot on introduction of feed rationing software to help optimizing total rations and margin over feeds. KMDP participates in sector platforms that discuss forage availability in Kenya and supported the National Fodder Conference in Nakuru in December 2017 and the Animal Production Society in Nanyuki in March 2018
KMDP-II works with 17 dairy cooperative societies and 3 milk processors (Meru Dairy Cooperative Union, Happy Cow Ltd and Bio Foods Ltd) on a number of issues related to milk production, collection, bulking and marketing; service provision and governance & management. The interventions on milk quality range from more generic to specific in terms of piloting innovations and policy lobbying. On the generic level milk collectors, transporters and graders of dairy cooperatives are trained and policies are being developed and implemented at cooperative level at all 17 cooperatives. Next to this KMDP has a targeted approach where it supports Happy Cow Ltd from Nakuru and two of the cooperatives that supply the processor with milk, with implementing a milk quality tracking & tracing system and a quality based milk payment system. At policy level KMDP-II works with the Kenya Dairy Board (KDB) and the Kenya Dairy Processors Association (KDPA), where it supports the safe milk campaign and strategic planning
KMDP-II (as in KMDP-I) promotes and support within the partnerships it has with processors (3) and dairy societies (17) so-called functional dairy value chains, characterized by formal and inclusive relationships between farmers, dairy societies and processors with inclusion of youth and women. Important drivers for such relationships are trust and loyalty, timely payment, fair and stable prices and provision of quality services from the processor to the dairy society to the farmer. This includes services provided in-house and partnerships with private input and service providers. These services should be geared towards enhancing productivity at the farm level, and efficiency & quality in raw milk collection and marketing. As this will contribute to enhanced profitability and sustainability of the dairy enterprise and the industry as a whole.Functional dairy value chains are also characterized by a stable and conducive relationship of dairy value chain actors and input/service providers with policy makers and regulators. Be it at the level of Counties or national government. With a common vision on how to address systemic bottlenecks for sector growth and competitiveness. At this level KMDP supports Kenya Dairy Board and Kenya Dairy Processors Association, the latter with strategic plan development. KMDP also participates in national forums for feed & fodder, milk quality and TVET (practical skills development).
KMDP promotes and facilitates international knowledge exchange, business linkages and other partnerships for learning and exchange. This is seen as an important condition for fast-tracking adoption of good agricultural practices and innovations that are necessary to enhance the competitiveness of the sector, its long term sustainability and its attractiveness for investors. KMDP-II will continue to organise and support investors’ forums, dairy trade fairs and exhibitions, market studies/scans, international study tours and trainings, and most importantly business-to-business linkages (B2B). B2B linkages and partnerships are considered as a more sustainable way of promoting change, innovations and best practices than aid-relationship are, as they are market-led and will continue as long as there is demand for the products and services. KMDP-I and II have been successful in forging B2B linkages between Kenyan and Dutch input suppliers and service providers, and assisted others with setting up base in Kenya and investing in the sector. This is partly facilitated through KMDP-II’s Innovation & Investment Fund which is the successor of KMDP-I’s Innovation Fund