Agriculture & Microenterprise Development

Success Story

Small- scale, on-farm milk processing earns Kenyan farmer six figures!

Mr. Nganga is a local milk marketer who lives along the Kenya-Uganda border. Previously, he used a traditional three-stone wood fire for pasteurizing his milk.  Upon receiving training from USAID/Kenya’s dairy development implementing agency, Land O’ Lakes, on milk handling and small scale processing, Mr. Nganga installed a batch pasteurizer that substantially reduced both fuel costs and negative impact on the environment, while improving the milk’s taste over the cooked flavor he used to get from the fire.  In addition, Mr. Nganga can now legally sell his milk on the Ugandan side of town, having met the condition set by Ugandan authorities that milk must be pasteurized.

But Land O’ Lakes continued its outreach further down the supply chain.  In May and July 2003, its staff discussed micro-financing opportunities with twenty-five members of Mr. Nganga’s group of local milk traders, at the behest of Mr. Nganga himself.  These traders penetrate deep into the surrounding countryside to purchase milk from area farmers.  Land O’ Lakes then made arrangements for a meeting with a micro-finance institute.  By September 2003, the group was successfully linked with K-Rep Bank, and an 8-week preparatory program for accessing credit is already in progress. Once they complete the mandatory probationary period with K-Rep Bank, it is expected that the group will access some $6,500 in credit and be able to expand their own businesses. 

Mr. Nganga used to handle less than 100 liters a day before Land O’ Lakes’ assistance, but currently handles 900 liters a day, and generates approximately $66,000 per year in income.  With an eye for increasing profits even more, he now intends to buy a second batch pasteurizer of 500 liters. 

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