Kenya milk processing plant helps local farmers
Entrepreneurs are building innovative agrifood businesses across Africa. They have the potential to improve the lives of thousands of farmers. We talk to a young farmer supplying Kenyan milk processing plant Classic Foods.
Classic Foods Limited is a Kenyan food processing company with a strong interest in dairy. It buys raw milk from smallholder farmers who otherwise struggle to access reliable markets. In 2009, Rabo Rural Fund provided capital to help Classic Foods establish its own milk processing plant, creating additional market stability for its suppliers. By providing a consistent market and a fair price, Classic Foods has enabled thousands of smallholder farmers to earn a regular income.
One of those farmers is Cecilia Wambu Ndegwa. Wambu Ndegwa traveled to the Netherlands recently to attend the Food First conference at Rabobank’s Utrecht office. She gave us a sense of just how important companies like Classic Foods are to small-scale family suppliers.
“I needed to sell more milk and earn a more reliable income”
- Cecilia Wambu Ndegwa, dairy farmer
Tell us about your decision to become a dairy farmer
Cecilia Wambu Ndegwa : I was doing contract clerical work, but I wanted to be more in control. The employment situation in Kenya is tricky; it doesn’t give much certainty. You might get a three-month contract, and then nothing for months. I have an entrepreneurial spirit, so I thought I should try something different.
“I looked around the urban area where I live, and I realized that no-one was producing fresh milk. So I saved a small amount, bought a cow, and started supplying milk to local people. I then bought two more cows. But because I didn’t have access to proper cooling and storage facilities, I was limited in how much I could produce. I needed to find a way to sell more milk and earn a more reliable income.”
Who do you sell your milk to now?
“Luckily, I was introduced to Washira Kariuki, the CEO of Classic Foods. He offered to buy my milk at a very fair price. Now my husband and I deliver milk to his factory daily, and receive a payment each month. Having regular deposits in our bank account has given us access to microloans, and that has made us even more productive. We now have seven cows and four calves. And a small truck!”
“Having regular bank deposits has given us access to microloans”
- Cecilia Wambu Ndegwa, dairy farmer
Why do you need a truck?
“We bought it so we can transport our milk to the processing plant. Previously we paid local motorbike taxis to do that. Having our own truck gives us more control over how and when we deliver the milk. Plus, my husband uses the truck to transport goods locally. Without regular income from Classic Foods we could not have bought the truck; without the truck, we could not earn extra money through our transport service. Now we can pay all our bills and basically enjoy life.”
Do you think you might inspire others?
“Well, I think that’s already happening. I know two other people who have seen our small setup and started a similar operation. It’s unusual to have a typically rural operation in an urban area, so people might not think to try it. But when they see that ours is working, they start to believe that they should try it too.”
Photo: ICCO
