Cooperative solutions for a greatly improved supply chain
Nyamarura Dairy Farmers Cooperative is Located 160 km outside Nairobi, in Ol Joro Orok, formally incorporated in 2014, with around 20 members producing about 500 liters per day.The Cooperative was born as a response to the requirement of high volumes of raw milk demanded by their off-takers, Eldoville Dairy and New KCC.
The client challenge
The lack of a cold chain affects smallholder productivity, as less than half of the milk these farmers produce reaches dairy processors. Many farmers live too far away from the dairy processors and large collection facilities, and struggle to deliver their raw milk on a daily basis before it spoils. Without chilling solutions that can operate in areas with low grid reliability, these farmers lose a significant part of their dairy production to spoilage.
The InspiraFarms solution
The Nyamarura Dairy Cooperative met !nspiraFarms in mid 2014, and agreed to partner to test the company’s new off-grid dairy chiller with 2,000 liters capacity and real-time data monitoring capacity. InspiraFarms developed the chiller in Italy in 2014 with key partners, such as E.T.A. and eGenera, and with funding support from DOEN Foundation. With financing from Root Capital, the Nyamarura Dairy Cooperative, acquired the unit toward the end of 2015.
The success story
After only eight months using the unit the group currently chills over 1,500 liters of milk at 4Cº daily, with New KCC collecting that chilled milk. A photovoltaic system provides 50% of the chiller’s power needs, while a recently installed single-phase electrical system meets the rest. This combination of solar and grid power, allows the cooperative to avoid diesel-powered generators, which keeps its operating costs low and earns it a clean zero-rated energy production.
The price now gained from selling chilled milk is allowing Nyamarura Dairy Cooperative to cover their operational and management costs, repay their loan to Root Capital and maintain a fair standard price to farmers.