The state has partnered with the International Fund for Agriculture Development for the Sh2.3 billion phase two of the smallholder dairy commercialisation programme.
The goal is to increase the income of poor rural families that depend substantially on production and trade of dairy and related products for their livelihoods.
The project outreach will be scaled from 25 to 33 subcounties in nine counties with an estimated dairy population of 560,817 in the second phase, which runs from 2016-2019.
Livestock PS Andrew Tuimur said the programme focuses on improving financial returns or market products and job creation in rural areas.
More than 13,125 small dairy farmers have benefited from the SDCP initiative which started in 2006 in the nine major milk-producing counties, he said.
Tuimur said counties are required to provide human resource for successful implementation of the project.
Out of the membership of these dairy groups, 60 per cent were women's groups. Some Sh58.6 million was disbursed to 94 dairy groups as grants.
The PS said SDCP supported more than 527 dairy groups against appraisal target of 600 to increase their benefits from dairy farming.
He spoke yesterday in a workshop in Kisumu town organised to discuss SDCP implementation of additional financing phase.
Tuimur said eight bulk milk cooling facilities have been provided to beneficiary communities.
The initiative has been rolled out in dairy commercialisation areas in Nakuru, Bungoma, Bomet, Kisii, Kakamega, Nandi, Nyamira, Trans Nzoia and Uasin Gishu counties.
In phase one, which started in 2006- 2012, Tuimur said about Sh1.7 billion was spent on the programme in 25 subcounties of nine milk producing counties.
He said the additional financing for the project scaling up, including physical and price contingencies, is estimated at Sh2.3 billion.
The initiative has led to increase in milk production through the enhancement of farmers’ technical skills.
“Dairy groups have been empowered to increase milk production per cow from 4-12 litres per day. The average cost of producing one litre has dropped by 25 per cent (from Sh24 to Sh18 per litre) against a target of 20 per cent,” Tuimur said.
The programme has seen increase in milk marketing, increase in income and job creation, reduction of cattle diseases, improved access to dairy cattle feed and fodder, and access to enhanced dairy farming technologies.
More than 120 litres of value added milk was marketed, mainly through bulk buying and cooling, up from 27 million litres. The cumulative value of market milk has increased from Sh488 million in 2007-08 to Sh25.8 billion in 2015.
Disease incidences have dropped by 60-90 per cent through vaccination and incidences of vector-borne diseases have decreased from 21 to 10 per cent in the programme areas.
The PS said dairy groups that have engaged in business activities generate employment and profit which is shared among members.
He said 81 per cent of the targeted households recorded an increased income from an average of Sh130 to Sh386 per day.
“An estimated 21,978 jobs have been created through collective milk marketing,” Tuimur added.
Farmers have also increased the area under fodder crops to 28,800 up from 10, 560 acres, he said.
Ninety-seven small-scale feed mills have been established by dairy groups in the programme area and 80 dairy group bulking sites have transitioned into fully commercialised, Tuimur said.
He attributed low-cost, labour-saving technologies to the project.