Scaling up in dairy - towards cooperative market power An action plan for 2012 has been developed, covering the following aspects:

1. Develop and extension model for Ndumberi
- Conduct a review of the current extension model
- Develop an extension model
- Support capacity building of some of the current staff to provide extension
- Training of Farmers on fodder management, calf rearing and AI
- Establish 3 demonstration farms per route and manage expectations between the parties involved (Cooperative, Extension Officer and Farmers)
- Engage a Local Capacity Builder to backstop the Extension Officer 
- Create a sample of 50 Farmers and ensure follow –up to assist track impact. Design and use monitoring form.
- Stimulate service provider enterprises through training of Service providerse.g. youth groups
- Farmer education on AI including breed type, cost etc
- Periodic milk quality testing as well as animal feeds
2. Performance management
-	Review of current staff
-	Undertake a training needs assessment to inform future trainings

3. supply and operations
Conduct an analysis of collection and distribution systems for milk and yogurt for both Kiambaa and Ndumberi
4. Marketing
Develop a marketing strategy for yogurt linking to Kiambaa in line with the merger plans.
5. Cooperation between Ndumberi and Kiambaa
Hold a brain storming workshop with the two management committees
Develop a roadmap for the Cooperation/venture
Targets 2012
- Increase milk intake to 25,000 l/day for society
- Sample Farmers increase milk production by 10%
- Increased area planted with fodder crops and use of silage by sample farmers (> 10%)
- 10 demo farms established and 500 farmers trained
- Review of job descriptions and recommendations for redeployment
- Reduce Operational costs at 20% and increase milk payment to 80%
- Develop a marketing strategy for yogurt linking to Kiambaa in line with the merger plans.
- Marketing plan/strategy
- Final proposal merger approved by BoD Ndumberi - Kiambaa

Ndumberi Dairy Cooperative Society (NDCS) was formed in 1963 to assist the farmers in fetching market for their dairy milk products. Since then, the society has held together and has attained considerable growth in membership, dairy milk intake, number of services to members, assets and number of staff. 

Members of NDCS are eager to see their cooperative grow and catching up with the best in the country. NDCS management understands that to achieve the growth and development expected, there is a need to upscale. It is clear that critical mass is key in processing capacity as too many factories have underutilization and adding too much costs to the owners. The market for dairy is dynamic with new players entering the market, changing legislation and changing spending habits. This frequently asks for new investments to keep up with the competition.

Facing these and other challenges Kiambaa Diary and Ndumberi Dairy are aware of the need to discuss possibilities for joining forces and creating economies of scale. They both operate in the same area, are already partners in the AI program and there seems to be trust and chemistry between the leadership and management of the two cooperatives. The current proposal is complementary to the Kiambaa 2012 action plan and aims at creating the conditions for the merger between Kiambaa and Ndubmeri. The project targets increase in milk quality and volume, professionalization of management, joint strategy and business plan development together with Kiambaa

to optimize  performance of Ndumberi dairy in order to increase its business in terms of supplying farmers, volumens of milk and market outlets and  to set the stage for a successful merger between Kiambaa and Ndumberi.