Investing in governance and sustainable supply of milk Extension services, especially in the area of feeding and fodder preservation seems not yet to be in the centre of activities of Kieni Dairy. There are on local coop level activities on ground but not coordinated by Kieni Dairy. Quality of these local initiatives are questionable. Set up of an extension services program by Kieni Dairy is adviced to assure alignment, coordination, critical mass and quality. Therefore Agriterra will support further development of Kieni extension services to members, mainly in the fields of hay production and compound feed delivery.  

Kieni Dairy wants to start with processing of the milk; pasteurised milk and yoghurt. Taifa SACCO (80.000 members) will pay for this investment, and will become partly owner of the factory. Most of the farmers are also a member of this SACCO. Keini Dairy is paying the Cooperative Society, and the individual coops are paying their farmers through the SACCO. An additional loan form the Cooperative Bank of Kenya is also considered. Agriterra is requested to advise Kieni Dairy on the setup of the company structure and the design of the plant. 

Furthermore Agriterra will offer support in the area of the cooperative structure since the current structure seems rather complex and very time consuming for key persons involved. Loyalty of individual coops towards Kieni Dairy is low. Development phase, size and quality of management of individual cooperatives differ a lot. This can become a treat when front runners feel they are being pulled back by the lackers. The high mutation rate of the board members is hindering teambuilding and effective management. The current structure will be assessed through trainings and discussions with board members on key topics in the field of cooperative governace. 

Also a  marketing and sales plan will be establish two new milk bars in Embaringo and Kiawara for Hillside Dairy Processors Ltd, one of the stronger of the 7 primary societies of Kieni. Market research on competition and target group (middle and higher income) will be done by a Dutch expert on dairy marketing and sales. 

The underlying project has the following targets:
1 marketing and sales plan for 2 milk bars targetting middle and high end market
Increase milk intake by 5,000 l/day for society
2 demo farms established and 100 farmers trained
Sample Farmers increase milk production by 20%
Increased area planted with fodder crops and use of silage by sample farmers (> 10%) 
Improved feed/milk price policy making and professional decision making process within Board

Develop a feed production and sales plan for Kieni
-	Conduct a review of the current feed production
-	Use questionnaire for market research members’ extension and feed needs
-	establish 2 modern demonstration farms 
-	Training of youth on producing fodder and feeding of the 
-	Train farmers on change to zero grazing
-	Create a sample of 20 Farmers and ensure follow –up to assist track impact. Design and use monitoring form.
-	Stimulate service provider enterprises through training of 20 Service providers e.g. youth group

Performance management
Training of Board members of primary societies (72, incl. managers) on topics:
1.	Size and operation of a modern dairy processing plant 
2.	Dealing with price fluctuations (compound feed, hay, milk, etc.) and how the cooperative can assist (seasonal levies and support)
3.	ICT, information and extension services to members
4.	Conflict resolution.

Market research on competition and target group (middle and higher income) for 2 new milk bars in Embaringo and Kiawara.

The  project has the following targets:
1 marketing and sales plan for 2 milk bars targetting middle and high end market
Increase milk intake by 5,000 l/day for society
2 demo farms established and 100 farmers trained
Sample Farmers increase milk production by 20%
Increased area planted with fodder crops and use of silage by sample farmers (> 10%) 
Improved feed/milk price policy making and professional decision making process within Board

The goal of the project is to support Ankole with getting access to working capital with better conditions, to help Ankole to increase its volume of coffee and to help with the development of the business plan for the coffee plant.