Project Proposal
Dairy Processing Plant To “ To
i mprov impr ove e the qual qual i ty of of r aw mil k f or soc socii al, eco economi nomi c and health health
reaso ns” ns”
April 2014
1. PROJECT DETAILS 1.1.
Project Title:
Milk Processing Plant
1.2.
Type of Project:
Dairy Project
1.3.
Project Location:
Litein
1.4.
County
Kericho
1.5.
Country
Kenya
1.6.
Region
Africa
1.7.
Project Beneficiaries:
Farmers and local community
1.8.
Donor
1.9.
Date of Implementation:
1.10.
Implementing Agent:
1.11.
Project Objective:
1.12.
Project Description:
2014
“To improve
the quality of raw milk for social, economic and health reason s”
Set up a dairy processing plant; a cooling plant, a pasteurizer, sterilizer and related milk processing equipments so as to add value through milk pasteurization hence production of milk products such as yoghurt among other products
1.13.
Budget Requirement:
The Total Budget for the Project will be; Phase
I: ………………………….
Phase
II: …………………………
Phase II: ………………………… 1.14.
Outcome of the Project
The project is expected to improve the lives of the farmers through increased returns and improve the economy of the area.
1.15.
Project Sustainability
Project sustainability will be ensured through clear independent project audits, project advisory board, competent personnel and initiating related sustainable projects
2. BACKGROUND; Dairy farming is a major component of many rural households in Kenya. In most villages farmers rely heavily on cattle for their livelihood. It is estimated that dairy cattle contribute about 60% of the national milk production. Majority of Kenyan households keep an average of 1-5 cows and most of the milk is used for family consumption. With the reported production levels this milk is sold raw and through middlemen who buy from farmers at low prices and lack of value addition on the milk. Farmers living in or near town centers and keeping more productive cows, sell directly to consumers or shops, therefore never enter the supermarkets, but are sold in the street or on the green markets.
1.1.Prime Factors Affecting Milk Marketing These factors include: Poor Collection methods, Traditional production and marketing channels, milk production practices, unorganized farmer community, high cost of setting up dairy plants, role of middlemen and infrastructure. 1.1.1. Poor Collection Method
Despite various initiatives to enhance quality at various stages of the dairy chain, many weaknesses still exist. The hygiene and handling practices at farm level are generally poor. The collection and transportation of milk and the sale of loose unprocessed milk, is still a big challenge as far as improving quality in the dairy chain is concerned. Limited quality control is undertaken during milk reception. 1.1.2. Traditional production and marketing channel
Most of the dairying process exists at subsistence level and a subsistent farmer maintains 1-5 milk producing animals on his/her farm. These animals produce milk which is used to fulfill daily household requirements and excessive amou nt is sold to run daily household activities.
1.1.3. Milk Production Practices
Raw milk is a perishable product and it is an expensive product to transport over long distances. Due to lack of proper management practices and poor breeding, animal production tends to be very low. This results in low farm profitability and inconsistency in qualit y 1.1.4. Unorganized Farmers Community
Most of the dairy farming is running at traditional level regarding production and marketing process with no professional and commercial touch. Both of these activities are mostly carried out in isolation from each other. These factors particularly hamper the profitability of farm produce. On the other hand, organized marketing can enable individual farmers to fetch out maximum revenue. 1.1.5. Lack of Infrastructure and poor road network
The dominant informal sector lacks infrastructure for milk collection and transportation. Milk bulking is mostly done in open places without chilling facilities. Milk is transported in aluminium cans or plastic containers on bicycles, motorcycles used by more than 70% of the farmers. 1.1.6. Role of middlemen
Milk marketing in rural areas is mainly exploited by middlemen and smallholders have to rely on middlemen to market their produce. Middlemen always have a monopolistic approach and can exploit farmers by paying low prices, executing binding sales contracts and not passing on gains when prices are seasonally high in response to lower supply.
2. PROJECT OBJECTIVES; 2.1.Development Objective “To
improve the quality of raw milk for social, economic and health reasons ”
2.2. Immediate Objectives a) Ensure reliable and better market access and openings for milk and milk products b) increased income-generating capacities among the local community c) Increased returns for local farmers through increased sales d) To reduce poverty levels among the community e) To improve consumer satisfaction f) To improve milk processing, packaging and branding
3. PROJECT IMPLEMENTATION AND MANAGEMENT PLAN 3.1. Project Structure and Organization Structure of the Dairy Processing plant Milk Loading Bay
Milk Products; o
Yoghurt
o
Butter
Raw Storage/ Coolers
Separation
Pasteurizer
Raw Milk: Dairy processing starts with raw whole milk from dairy farmers
Unloading/Receiving Bay: The milk is delivered to the processing center in milk containers. An
enclosed, all-weather unloading bay is required for sanitary delivery of raw milk. This area must be adequately clean and sanitize.
Raw Milk Storage: This involves storage of milk in coolers
Separation: The first step in processing is separation. No matter what product is to be produced, the
raw milk goes through a separation process.
Raw processing: This can be done through a single line processing or multi-line processing
Pasteurization: A wide range of options can be added to the basic process unit depending on the
individual production requirements. These include; separator, sterilizer, homogenizer etc
3.2. Project activities and work plan Phases Of The Project (Date)
Activities
Output / Target
Indicators
Person In Charge
Resources Needed
Cost
3.3. Desired Impact and Outcome of the Project
An increased gross value of farm milk income for farmers
Creation on new jobs for the local community especially the youth and women
Improved Health among children through consumption of improved quality milk products
Economic improvement and consumer safety
Improved health among the children through consumption of healthy milk products
3.4. Project Beneficiaries
The project beneficiaries will include;
The stakeholders of the dairy plant especially the dairy farmers who supply milk to the plant
The consumers of the products i.e. the local community and the market outlets in surrounding region
The region’s economy will also benefit from the project through increased income and improved milk business operation through an organiz ed market chain.
3.5. Project Personnel
Project Advisory Board
Project Manager
Project Committee
Project Engineer
Accounts Officer
Project Administrator
Human Resource Officer
Monitoring and
Community Liaison
Evaluation Officer
Officer
Post Project Independent Audit
4. PROJECT MONITORING AND EVALUATION 4.1. Stakeholder Reference Group / Community Representatives / Project Committee
The project will have a Stakeholders Reference Group which will meet Quarterly to review progress with the project. 4.2. Project Advisory Board
A Project Advisory Board will be established for purposes of project implementation and advice the delivery of the main activities. 4.3. Post Project Independent Audit
A full report will be produced at the completion of the project documenting outputs and outcomes from the project. This report will be available within 3 months of the project completion 4.4. Monitoring and Evaluation Officer
The M&E Officer will report on the project progress every Quarter when the Advisory Board will be holding a meeting.
5. BUDGET
