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Kenya
Market Trust (KMT)
Mapping
animal feed manufactures and ingredient suppliers
In
August 2016, Right Track Africa carried out a market study for
Kenya Market Trust (KMT), in Kenya. KMT commissioned the study
“Animal feed study: Mapping animal feed manufactures and
ingredient suppliers” to establish the factors that affect feed
costs and quality and limit their effective utilization at farm
level. The study was carried out between August and October 2016,
by a study team from Right Track Africa (RTA) and Nutrimix
Limited. The report developed findings and recommendations in
pertinent areas such as populations and distribution, ingredient
demand and supply, quality control (internal and policies), supply
chain and pricing models.
The
study sought to establish the total population of feed
manufacturers and raw material suppliers in the country, their
location, infrastructural capacity and volumes of product handled.
The total population of the feed operators encountered was 305,
consisting of 115 who only manufactured feed, 96 who supplied raw
materials (or ingredients) and 94 who did both. Hence a total of
about 210 feed millers, which more than twice the number
established in a 2008 survey by the Ministry of Livestock
Development. A revelation that emerged as soon as the study got
underway was that a large number of raw material suppliers did not
have fixed physical addresses. They (the suppliers) worked by
connecting ingredient sources to ordering customers
(manufacturers, distributors and even retailers) through their
distribution and transport systems.
The study used data collected from
feed manufacturers, raw material or ingredient suppliers, farmers
and key informants along routes regions and towns where intensive
feed manufacturing is expected to take place. This included
Nairobi city and its environs, central Kenya and upper Eastern,
Rift Valley, Western and Nyanza, and lower Eastern and Coastal.
Census data was collected from all the feed dealers and a survey
of a few selected as sample. Key informants and relevant
literature was also collected from institutions and organizations,
including the Association of Kenya Feed Manufacturers (AKEFEMA),
the Kenya Bureau of Standards (KEBS), the Ministry of Agriculture
and Livestock, KARLO, ILRI and ICRAF, Egerton University, and the
University of Nairobi. The team also collected information from
farmers using focus group discussions along the routes.
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SNV – Livestock
Value Chain Analysis
Mau Mara Serengetti project –
Livestock Market Development
In March 2016, a team from Right
Track Africa carried out a
Livestock Value Chain Analysis for SNV-MAMASE project –
Livestock Market Development. SNV commissioned a value chain
analysis (VCA) to map the actors, the flow of demand and supply
of livestock and livestock products (meat, hides and skins),
assess the inputs and support services with focus on markets,
value addition and commercial oriented production. The study also
analysed market constraints and opportunities for the various
livestock products that could be maximized, locations, quantities,
quality management, linkages with end markets and barriers to
competitiveness. The study, followed a value chain and market
analysis approach. This entailed a mapping and analysis of
livestock production from the Mara region, related trading and
processing functions in order to understand the primary actors and
systemic conditions that could be addressed to achieve higher
levels of performance. The study was conducted in targeted
production areas of Narok County and serving markets. Data was
collected using focus group discussions, informant interviews and
literature review. The key respondents included the pastoralist
producers, their input suppliers, local and visiting buyers,
market and processing representatives. Data was also collected
from development agencies, and technical officers.
The study provides a detailed
synthesis of the Mau Mara livestock value chain and
recommendations to improve the Mau Mara communities’
participation in the livestock production value chain through
sustainable use of their land. The study addressed the following
objectives; to map the livestock value chain actors, the flow of
demand and supply of livestock and livestock products (meat, hides
and skins), to assess the inputs and support services markets with
focus on markets, value addition and commercial oriented
production and to analyse market constraints and opportunities for
the various livestock products that could be maximized, locations,
quantities, quality management, linkages with end markets and
barriers to competitiveness.
SNV’s Mau Mara Serengeti (MaMaSe) Sustainable Water
Initiative project is promoting water safety and security in the
Mara River Basin (MRB) to support structural poverty reduction,
sustainable economic growth, and conservation of the basin’s
forest and rangeland ecosystems. It’s Sustainable Livestock
Production and Marketing component focuses on determination of
livestock off-take, better stocking rates for improved local
livelihoods and more space for wildlife, improving market access
by creating a competitive enabling institutional and financial
framework that will improve land owners’ benefits in such a way
as to not exhaust land productivity.
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SNV – Kenya
Rural development Project (KRDP1)
Camel Milk Demand
Study
In 2015, a team from
Right Track Africa carried out a Camel milk demand study for SNV’s
Kenya Rural Development Project (KRDP CfP Lot1), funded by the
European Union to describe the institutional and policy
environment for production and marketing of commercial camel milk
in Kenya, providing a detailed analysis of camel milk marketing
and consumption in selected urban centres. The overall objective
of the study was to determine the existing and potential market
demand for camel milk in major areas of consumption in Kenya. The
study focused on seven urban centres known to be important markets
for camel milk derived from pastoral areas in Kenya.
These were Nairobi, Mombasa, Nakuru, Marsabit, Garissa, Wajir and
Isiolo. Studying product demand and market requires one to
understand the sector fully from a supply chain framework. So the
study used data drawn from most of the actors in the camel milk
supply chains in the areas of interest, with emphasis on the
market end of framework. The study combined key informant
interviews, focus group discussions and consumer surveys.
Kenya has a camel
population of 2,970,911. In addition to the traditional camel
keeping areas in
Mandera, Wajir,
Garissa, Tana River, Marsabit, Turkana and Isiolo, in the recent
past, camel Keeping is emerging in counties such as West Pokot,
Kajiado, Samburu, Baringo and Laikipia. There are 16 important
camel milk-producing counties in Kenya. The total annual milk
production in Kenya can be estimated at 1.1 billion litres valued
at KES 54 billion. Generally, cow and goat milk are the main
competing products across the urban centres studied.
Sheep milk is unpopular in the major urban areas such as Nairobi,
Nakuru and Mombasa. Among the
interviewed consumers, 7% in Marsabit, 14% in Mombasa 78% in
Nakuru and 9% in Nairobi’s Eastleigh
and South C markets are not familiar with camel milk. These
figures present an opportunity for expansion of
market share through popularizing camel milk in
these existing markets. It can thus be argued that the market
potential of these areas is yet to be
fully utilized. Awareness of camel milk is increasing in
non-traditional zones. As anticipated,
all respondents in the traditional camel keeping counties of
Isiolo, Garissa and Wajir were well aware of camel milk. Of
interest are awareness levels in Nairobi, Mombasa and Nakuru where
70%, 66% and 65% respectively were well aware of camel milk.
The study sought to
establish the willingness to consume camel milk among
non-consumers. Over 30%, 33%band 35% of the interviewed consumers
in Nairobi, Mombasa and Nakuru respectively, were not aware of
camel milk. These represent a new market for camel milk where
interested entrepreneurs can venture. This proportion of
respondents was introduced to camel milk and its purported health
benefits. Approximately more than 70% of this segment of consumers
was willing to start consumption of camel milk. Nairobi is leading
on the potential demand, estimated at 205 million litres p.a
followed by Nakuru at 78 million litres p.a and Mombasa at 59
million litres p.a. The potential demand is way too huge to be met
by the estimated potential supply if the existing supply chains
were to give maximum supplies to the urban centres. The potential
supply was estimated based on the current supply chains and the
estimated annual milk production. This means, to meet the huge
demand, requires investing through introducing new supply chains
to existing ones. The value of estimated potential demand is
estimated at 10 billion in Nairobi, 3 billion in Nakuru and 2
billion in Mombasa. The value of milk supplied through existing
supply chains however is estimated at KES 5 billion, 1 billion and
0.8 billion in Nairobi, Nakuru, Mombasa respectively.
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