Dairy Coop consolidation towards dairy processing IAKIB is a dairy cooperative, officially registered in 2011, but started informally as an association of dairy farmers on October 23th 2003. IAKIB (Impuzamashyirahamwe y’Aborozi ba Kijyambere ba Byumba) aims to increase the production of high quality milk, improve breeds of dairy cows, provide outstanding services to members and reduce poverty by improving the livelihoods of the producers engaged in dairyproduction.IAKIB presently has a membership base of 684 members and 6,300 milk supplying non-members. On an annual basis these farmers in the district of Gicumbi supply approximately 10 million liters of milk to IAKIB. Currently the supplying farmers own approximately 10,000 cows, but it is expected that this number will grow to at least 15,000 cows in 2019. At that time IAKIB expects to have a surplus of milk of 10,000-20,000 liters per day, in addition to the expected demand from its current buyers.
The main activity of IAKIB is the collection of raw milk, which is being supplied to a private dairy company named “Blessed Dairies Ltd”. The owner of Blessed Dairies Ltd. is a member of the cooperative and the company processes 3,000 – 5,000 liters into yoghurt and cheese on a daily basis. In total it acquires 25,000-30,000 liters per day from IAKIB, of which the majority is being supplied to Rwanda’s market leader in dairyproducts Inyange Ltd. They are however not accepting all the milk of the IAKIB suppliers, because the demand is not big enough.
Besides dairy activities IAKIB has cow feed processing activities and it provides minor financial services to its members. 
IAKIB has set as its objective to start milk processing in the near future, possibly in a joint venture with Blessed Dairies Ltd. The financial risk of this business plan is significant, since only 10% of IAKIB’s farmersuppliers are actual members that have acquired a share in the cooperative. They are consequently carrying the risk of all farmers engaged with IAKIB. The financial consequences of rejection of milk and economic adversity are carried this limited group of farmers and since the organization is on the eve of doing major investments, it should consider to develop strategies to expand its membership base.Starting a joint venture also has its risks, because it will require IAKIB to invest in a legal entity it only partially owns. Choosing a right legal form and clear outlines of authority is very important and Agriterra is able to offer assistance in this design process. Agriterra has additionally identified improvement opportunities in the fields of milk quality, governance and management.Another risk for IAKIB is an organizational risk. The board and anagement seem well equipped to run a milk collecting cooperative, but doing processing and marketing requires additional skills. Having these skills within the organization is key for making the new strategy into a success. The design of the internal infrastructure of the newfactory and the selection of the machinery could benefit from Agriterra advice, as well as the startup of the new factory.
In 2016 IAKIB has started the process to officially register its financial services department as a separate SACCO, but is has not developed a business plan for it, nor has it done a profitability analysis. The objective is to offer such small loans to members for the procurement of production inputs, to carter for various services at house hold level This service will be exclusive for members and has the potential to increase member commitment. Agriterra will support IAKIB in developing its SACCO operations.

Update for action plan 2017:
IAKIB is a dairy cooperative, officially registered in 2011, but started informally as an association of dairy farmers in 2003. IAKIB aims to increase the production of high quality milk, improve breeds of dairy cows, provide outstanding services to members and reduce poverty by improving the livelihoods of the producers engaged in dairy production.
IAKIB has a membership base of 704 members and 6,300 milk supplying non-members. On an annual basis, these farmers in the district of Gicumbi supply approximately 10 million litres of milk to IAKIB. Currently the supplying farmers own approximately 10,000 cows, but it is expected that this number will grow to at least 15,000 cows in 2019. At that time IAKIB expects to have a surplus of milk of 10,000- 20,000 liters per day, in addition to the expected demand from its current buyers.
  
IAKIB has the ambition to start milk processing activities in a joint venture with Blessed Dairies and possibly with other actors in milk collection in the district. Agriterra and IAKIB have agreed to include the preparatory activities of this business plan in the action plan of 2017, in addition to activities related to the strengthening of the internal organisation, expansion of the membership base and the establishment of a SACCO.


Limited Action plan Sept-Dec 2016 (as start collaboration), with main activities:
1. legal advice (about joint venture in Rwanda)2. exposure visit to Meru Central dairy in kenya3. Visit a recent joint venture (preferably in Rwanda)4. Strategic Planning

Clarify strategy for processing activities