On Dairy Farming

In 2011, almost 50% of members who either completed their first or second loan cycle, had invested most of their 30,000 KSH loan in dairy farming. A good portion of loan clients used this money to buy a new cow in hopes of reaping the benefits of dairy farming. Understanding the profitability of dairy farming and with a desire to increase their profits, others have used funds to lower business costs by constructing better housing to prevent diseases, and purchasing chaff cutters to decrease the time spent preparing cow fodder. Some have even used funds to purchase another cow.

Investing in a cow to produce milk, is a profitable business venture in Kenya for various reasons. Milk is the popular drink of choice in many Kenyan households. Every morning, many Kenyans start their day with a cup of chai, which is milk, tea, and a liberal amount of sugar. Many Kenyans drink another cup of chai during lunch and also another during supper. For many of our loan clients, milk has been an important contributing factor in improving their livelihoods. The demand for milk allows many of our loan clients to make a consistent profit. This has led them to better pay for school fees for their children, improve their housing and also invest in their existing businesses. Additionally, milk helps improve the nutrition of their family by providing important nutrients, especially to children.