Piloting business models for solar milk cooling in Kenya

Background:

Milk losses due to a lack of cooling and poor hygiene result in estimated losses of 20% to 30% in Kenya. Hardest hit are small-scale dairy farmers located in electrified areas. Several technical solutions are currently being developed in Kenya, each with different features. However, beyond the technical solutions on offer there is still very little insight into the most promising business models.

For this project, a suitable business model will be identified and trial tested in a joint initiative between the University of Hohenheim, Geocode-international, the Bayerischer Bauernverband, the Kenya Green Innovation Centre, Powering Agriculture East Africa Hub and the communities of Kisumu in Kenya. The private sector shall be involved at that stage as far as possible to achieve the overall objective of build a bridge towards the deployment of solar milk cooling technologies.

Objectives:

The overall goal of the presented project is to identify, assess and promote business models that would contribute towards an up-scaling of the ice-based milk cooling concept in Kenya.

In relation to the promising acceptance of the introduced milk-cooling systems in Kisumu, Kenya, the presented project shall focus on the financial and economic assessment of business opportunities as main indicator for future interventions as further development of the technology, its promotion and cooperation with companies for its local production and commercialization. The objectives include:

• The financial and economic estimation of income generation potential of the current key beneficiaries involved in the project PARI within the actual pilot testing of 2-4 systems in Siaya and other suitable locations.
• To identify and formulate suitable business models and mentor beneficiaries on how to implement and manage a selected business model.
• The elaboration of strategies to promote and introduce small-scale milk cooling systems at different levels of the dairy value chain (farm, collecting points, cooperative, dairy plants) to give the Bayerischen Landfrauen initiative recommendations on how and where to effectively introduce the 2 systems planned.
• The study of the state of the art of local industry for a sustainable commercialization and maintenance of the studied milk cooling solution.

Other initiatives:

This project builds on several initiatives to develop suitable small-scale milk cooling concepts based on commercial available components:

• Field testing of a solar milk cooling solution in Tunisia: Implementation of ten of the above mentioned solar milk cooling systems in the region of Sidi Bouzid.
• Program of Accompanying Research for Agricultural Innovation (PARI): Three systems are currently under test in the region of Kisumu.

Through the on-going activities in Kenya, the technology has been adapted to be used through both cooperatives and directly by small-scale farmers. Up to now, several sizes are available to make the technology compatible to the needs of local farmers, milk collecting centers and cooperatives.