GAIN, milk ATMS in Kenya

Milk ATMs in Kenya offer consumers the chance to buy good quality pasteurised milk in flexible quantities.

How to reduce seasonal fluctuations in the availability of milk in countries affected by drought, such as Kenya?

Tarakwo Dairies, a farmer-owned milk cooperative with 1,200 active farmers, based near the city of Eldoret in Western Kenya, decided to add value to milk through pasteurisation and then to sell this milk through their network of coin-operated milk dispensers, or milk ATMs as they are known locally. These ATMs offer consumers the chance to buy good quality pasteurised milk in flexible quantities, for as little as 65 Kenyan Shillings (approx. USD$ 0.65) per litre (packaged milk typically retails for more than 100 Kenyan shillings / USD$1 per litre).

The company also acts as a wholesaler/retailer by supplying pasteurised milk to the rapidly increasing number of ATMs, whose owners struggle to consistently access good quality milk throughout the year. As well as pasteurised milk, Tarakwo offers mala, a traditional Kenyan type of fermented milk, and yoghurt, to its consumers.

“This project, supported by USAID, enables farmers to better control end prices to consumers and to offer them a higher than average buying price”, said Saul Morris, Director of Programme Services at Global Alliance for Improved Nutrition (GAIN) at the World Food Forum in Copenhagen.

Article published at the “Dairy Trends” section of the BtoB dairy trade magazine  “International Dairy Magazine” – English edition – November & December 2018

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