RAPPORTEURS SUMMARRY OF PROCEEDINGS OF - THE 10th AFRICAN DAIRY CONFERENCE AND EXHIBITION

Held at KICC – NAIROBI, KENYA, ON 24TH-26TH SEPTEMBER, 2014

Theme: Discovering African Dairy, Refreshing Mindsets.

PREAMBLE

• The Eastern and South African Dairy Association (ESADA), is an association of dairy industry practitioners from 9 (Kenya, Malawi, Mauritius, Rwanda, South Africa, Sudan, Tanzania, Uganda, Zambia and Zimbabwe). One of its key mandate has been knowledge and experience sharing forums through symposiums and conferences

• To enable stakeholders across the continent and the world at large to expound, disseminate and enlighten each other on achievements, challenges, opportunities, and issues threatening the dairy sector, ESADA organizes the African Dairy Conference and Exhibition (AfDA) from time to time.

African Dairy Conference and Exhibition- AfDA

• This year’s conference was held at Kenyatta International Conference Centre (KICC), Nairobi-Kenya.

• This event showcases products like animal health, feeds, breeding and welfare products , farm equipment and appliances , milk processing and packing equipment, food ingredients and additives, dairy products , dairy industry support or allied companies e.g. financial institutions, logistics companies etc., research institutions and development etc. in the Meat, Poultry & Seafood industry

Conference objectives –ESADA ….ED

Overall goal:• Technology transfer/knowledge sharing• Intra-regional tradeObjective:• Expose players to technologies in the industry• Showcase products, services and technologies for trade and

benchmarking• Provide platform to discussions on policy and their impact on trade in

the dairy industry.

Official opening

Remarks from Deputy President –H.E Hon William Ruto

• Dairy sector stakeholders encouraged to engage with policy makers in the expedience of reducing trade barriers across borders, so as to increase access of their products.

• Harmonization of trade policies across the region will enhance products flow

• Policy interventions that impede the growth of the sector e.g. availability of quality semen from bulls in Kenya, where the country plans to double semen storage capacity within the coming year (800M-1.6B)

• Revamping of the vaccines production (KEVEVAPI) from water-based to Oil-based reducing costs by 70%

Agriculture, Livestock & Fisheries, CS - Mr. Felix Koskei

• Dairy sector in Kenya growth rate (2002-2014), providing livelihoods to 1.2M, dairy farmers, 500,000 service providers, indirect employment to over 750,000.

• Key issues affecting the livestock sector, lack of infrastructure, inadequate veterinary services esp. in ASAL areas (Camels and goats).

• Draft bill in progress to address camel and goat dairy products growth.

State Department of Livestock, PS – Prof. Sigor

• Main issues in the dairy sector in Kenya, includes:i. Market accessii. Farm inputs supplyiii. Extension service• The conference was challenged to address these issues affecting the

dairy sector COMESA and Southern Africa

Chairman –ESADA – Dr. Kipkirui Arap Lang’at

• The conference broken down into eight topical sessions that cover key areas affecting the dairy industry

• The dairy sector is a large and growing sector in Africa and has the potential to create wealth in both urban and rural areas.

• Production of milk in the region falls short of meeting demand• Deficit attributed to:i. Low adoption of technology, ii. Low incentives to stimulate production,iii. Limited access to financial services including insurance, Potential for increasing milk demand exists within Africa (e.g. school milk program)

Chairman's’ speech cont’d

Expected outcomes from the conference include:• Dairy industry outlook from the regional and global perspectives as we seek

ESADA seeks to equip members with the right information.• Participants will also access information on current trends, future projections,

best practices, available opportunities and challenges, discuss industry-specific policy issues that have a deep impact on the dairy industry and its development.

• Emerging trade and competitiveness of the sector and the need to enhance the dairy value chain

• Sourcing for opportunities for public and private partnership especially in the use of data and research as key instruments in decision-making for both the governments and the private sector.

Vice president – Land O’Lakes

• The organization has a lot of experience and expertise in the dairy industry using the cooperative approach gained from working with over 300,000 USA farmers

• Recognizes that small and medium scale farmers are key to development and growth of the dairy sector, and has chosen to share with them these experience, esp. dairy value chain development

Presentations

Session 1

• Milk production grew where demand grew• Global per capita milk consumption is increasing • Increased production of milk is influenced by factors other than price• 2009 and 2013, milk prices were lowest due to adverse weather conditions resulting in

high feed prices. • Only 20% of African milk reaches processors • Africa is a net importer • Dairy sector has the capacity to support livelihoods to the increasing population if

developed• There is capacity for African dairy sector to compete favorably with the rest of the

world• Commercial orientation of milk production is key to increased competitiveness

Session 1 cont’d

• Challenges affecting the sustainability of the dairy sector growth:• Greenhouse gas emissions, Soil Nutrients, Waste, Water, Soil, Biodiversity,

Market Development, Rural Economies, Working Conditions, Product Safety and Quality, Animal Care

• The Global Dairy Agenda for Action urges members to commit to set standards to address the above challenges, and report.

• Dairy sector development needs to address income, self-sufficiency, and employment through business and/or livelihood driven scenarios that requires the collaboration of private sector, gov’t and dev’t partners.

Session 1 cont’d

• Development of a hub for the value chain actors in the sector to engage and access services, e.g, input suppliers, financials, transport, etc

• The use of the stage gate tool to evaluate producer organizations (PO)

Session two: world dairy trade and markets (Status and prospects)• The dairy sector needs to enable Commercial Investment through Market-Driven

Development.• “Competitiveness of a company and the health of the ‘communities’ around it are

mutually dependent.”• Poverty alleviation can be achieved through dev’t of the dairy sector.• African dairy has the potential to supply the world milk markets however it must

attain and maintain international stds including hygiene• African dairy sector needs to increase productivity and efficiency per unit of input.• Market driven production of milk and standards rather than the traditional supply

driven without market intelligence• There is need for more transparency along the value chain in terms of pricing and access to

markets

Session three: Dairy policies and economics- unlocking the potentialunlocking the potential

Session 3

• Dairy sector growth and sustainability has to embrace both environmental and social responsibility i.e. triple bottom line

• Food safety is critical for improved public health, trade facilitation, acceleration of economic growth and alleviation of rural poverty.

•

Dairy production for global market

Competitiveness and sustainability

Session four• The Dutch dairy industry has been successful by focusing on cooperation, education,

farm investment, farm improvement, and milk sourcing strategies. • Livestock Protective Fences (LPF) enhance milk production and mastitis control in

intensive zero-grazing dairy farming resulting in increased profitability.• The provision of nutritional supplements thro’ the use of liquid technology enhances

animal health & increases productivity.• Aflatoxins are harmful to human health & barriers to regional & international trade.

African countries need to develop and harmonize policies, standards and control measures.

• Vaccines ands vaccination programs are vital for enhanced dairy production. There’s a need to identify services that can be delivered by the private sector, the public sector and via PPPs (service structure innovation, enabling environment innovation).

Animal Health and Welfare

Session Five (a)

• Ticks with multiple generations per year and high reproductive rates have greater probability of developing resistance

• Acaricides resistance management is a function of incorporating a composite of integrated approaches in ticks control – IPM Strategy.

• FMD prevalence in Uganda is significantly prevalent in herds that are exposed to physical factors like, long distances covered by livestock (over 2km), poor hygiene conditions, proximity to abattoirs, and interaction with new animals in the herd.

Session 5 (b)

• African dairy industry needs to adopt the cooperative model to increase value chain efficiency and increase returns to smallholders.

• UHT production volumes and efficiency can be improved through the use of enzymes.

• Consumption of dairy products can be increased significantly through the production of flavored products.

Animal Feeding and Management

Session Six (a)

• Tremendous efforts are underway in East Africa in feed resource development through screening and evaluation of introduced forage species, hence concerted efforts are needed to scale up/out forage production to meet the increasing fodder requirements.

• Productivity increase in the dairy sector should increase climate resilience while reducing emissions.

Session Six (b)

• Probiotics (bacteria and yeast) when administered in adequate quantities can be used effectively to enhance the appeal of dairy products and consequently improved human health.

• Standards are a solution for unsafe foods in the market and act as reference documents to all players at every level of the food value chain.

• Standards are key to market access and are visibly presented via the standardization marks.

• KEBS is the standards body for Kenya and is leading in harmonization of EAC standards

Session 7

• Research is critical for the dairy industry ( nutrition, Diseases, product development, rehabilitation of degraded grazing lands, water harvesting)

• Training offers opportunity to disseminate research results ( For instance, Uganda has established a dairy Center of excellence)

• Need to address challenges to financing through graduating farmers into formal finance, addressing risk and security, building adaptive capacity and clearly defining shared vision.

• Donor support necessary for rapid development of the dairy industry (in areas such as genetic improvement, disease control etc).