Tetra Pak East Africa, Food for Development and customer Githunguri Dairy Farmers Cooperative Society (GDFCS) started a Dairy Hub project in 2022 in Kiambu county, Kenya.
This project has shown impressive results at the reference smallholder farms for the period of September 2022 – December 2024, including:
- Farm profitability: +26%
- Milk production per cow: +17%
- Milk collection/farm: +92%
- Margin above feed cost: +103%
- Reduction in milk rejections: 71%
Pathways to Profitable Dairy Farming
The Dairy Hub model links smallholder farmers to a stable market via a committed dairy processor. Through the Dairy Hub, smallholder farmers get access to the technical training and services they need to become profitable and grow their businesses. The model builds on developing milk production step by step from the level of individual farmers, through a network of farm advisors employed by customers in supporting a specified number of farms.
To expand on the success of the Dairy Hub project, a two-year Public-Private-Development Partnership (PPDP), Pathways to Profitable Dairy Farming, was launched on 22 May 2025 at the Githunguri Dairy Farmers Cooperative Society (GDFCS) in Kenya’s Kiambu County.
This initiative is a cooperative effort between Tetra Pak, the United Nations Industrial Development Organisation (UNIDO), Githunguri Dairy Farmers Cooperative Society (GDFCS), and the Kenya Dairy Board. Funding – totalling US$3.5 m – is provided by the Swedish International Development Cooperation Agency (Sida) via the Embassy of Sweden in Nairobi.
“I am excited to be part of this project, which has great potential to increase production and subsequently boost income for farmers from the Githunguri Dairy Farmers Society,” said Ms. Lynette Luvai, Kenya Deputy Country Representative, UNIDO.
While dairy farming is a lifeline for millions of Kenyan households, most farmers remain trapped in cycles of poor profitability amid low output.
“The Embassy of Sweden is pleased to support the Pathways to Profitable Dairy Farming project for the Githunguri Dairy Farmers Society to increase milk production and enhance job creation, especially for the youth and women,” said Ms. Marie Ottosson, Counsellor, Head of Section for Kenya Development Cooperation, Embassy of Sweden, Nairobi, Kenya.
Improving the livelihoods of women and youth
This particular project aims to make dairy farming profitable, improve the quality of milk collected for GDFCS, enhance the inclusion of women and youth in the dairy value chain, and promote environmentally sustainable farming practices. Another objective is to launch a Dairy Academy at Githunguri, which will be a centre of excellence for farm advisors and smallholder farmers.
Mr. John Ndichu, Chairman of Githunguri Dairy Farmers Co-operative Society, together with the first group of trainee farmers, praised the project, saying, “It has already yielded positive results, with farmers starting to record increased milk production at the farm level. According to records, the society has been steadily growing, with daily milk delivery rising from 90,000 litres to 250,000 litres, with a forecast of reaching 350,000 litres per day by 2027.”
Mr. Ndichu added, “The demonstration model farm has equipped the dairy farmers with the necessary knowledge and new skills, which will translate to maximum benefit. So far, the demonstration farm is attracting farmers from across the country and the region”.
Building on the positive results of reference farms, the project aims to train over 10,000 smallholder farmers on skillset development and better dairy farming practices, with a strong emphasis on including women and youth.
The Dairy Academy will provide technical training in animal health, farm management, recordkeeping, and business skills. The initiative will focus on building the capacity of farm advisors, i.e. Extension Officers, and smallholder farmers, while improving milk quality standards.
Collaboration with national and county stakeholders will support the scale-up of the Dairy Hub concept. Ultimately, the project seeks to lay the groundwork for the long-term financial sustainability and scale up the academy.
Continued collaboration for long-term success
According to Jonathan Kinisu, Managing Director, Market East Africa, “Building the capacity of customers via farm advisors and smallholder farmers through targeted training and collaboration is essential for creating a sustainable and inclusive dairy industry in Kenya,” highlighting the project's focus on empowerment and long-term impact.
Rafael Fabrega, Vice President Food for Development, adds, “By integrating technical training with market access and environmentally sustainable practices, we aim to transform smallholder dairy farming into a profitable and resilient livelihood for women and youth,” reaffirming the project's commitment to inclusivity and sustainability.
