Kenya - Standards and Trade Development Facility

Products/markets SPS compliance constraints Ongoing and plannedassistanceDairy productsDairy industry is predominantlySpecific & ongoing assistancesmall-holder based in ASALs.include:Annual production is now estimatedto be 4 billion liter (of which 3.5USAID: Regional Agriculturebillion is for local consumption. PastTrade Expansion Supportemphasis was mostly on increasing(RATES) including COMESAproduction, but recently efforts areDairy SPS protocol.made to improve quality.Vending of raw milk throughinformal markets accounts for some80% of total sales. Poor hygienicpractices in milk collection andhandling are reported. Presence ofanti-microbial residues is main publichealth concern and poses exportconstraints. There are about 26 dairyplants, 10 of which have capacitiesmore than 10,000 l/day.Industry is comparatively moredeveloped than dairy industries ofmany other countries in sub-SaharanAfrica. Dairy products are mainlyexported to EAC countries and thereare limited opportunities to enhancethis trade. Potential markets includeMiddle East, North and Sub-SaharanAfricaMinistry of Livestock and FisheriesDevelopment (MLFD) throughKenya Dairy Board (KDB) isresponsible for monitoring qualityand safety, inspection, establishmentor milk receiving centers, andawareness-raising and training.Among key constraints are poorhygienic practices in milk handlingand poor milk collection, transportmethods, lack of inspection andsurveillance, outdated legislation -but also more fundamental problemsrelated to livestock management,disease control and treatment andanimal feed practices (see above). ACode of Hygienic Practice forproduction, handling and distributionof milk and milk products exists butcannot support production andhandling processes in unregulatedmarkets.In milk processing industry concernsare related to product and marketdevelopment , production efficiencyand competitiveness, investment andexport promotion (where food safetystandards are likely to become animportant issue). Studies show thatlarge scale farmers are morecompetitive producers. Withreduction in domestic costs(transport, packaging, etc.), Kenyacould become globally competitive.Recommended actions/gapsThe following actions arerecommended to enhance domesticmilk production and prospects forexports:- continue and enhance awarenessraising,extension and training activitieson application of good hygienicpractices.- strengthen DVS capacity formonitoring, surveillance and control ofanimal diseases.- finalize and enact new Dairy Act inline with dairy development strategyand international requirements(supported by SOPs and guidelines.- enhance awareness-raising activitiesat consumer level (creating pressure onsuppliers).- control of antimicrobials throughdevelopment of national frameworkprogram (including augmentinglivestock development andmanagement practices in both formaland informal livestock supply chains,e.g. disease management, inadequacyof animal feed, inadequate access toanimal health services in rural areas,breeding programmes, etc.).- strengthen analytical capacity formonitoring of veterinary drugs andaflatoxin level in dairy products.- further assist industries inimplementation of GMP, GHP andHACCP.Priority11122228