Enhancing operational efficiency through digitisation

Established 3 years ago, starting with 40 farmers, the cooperative has grown to more than 1500 registered farmers aggregating more than 3,000 litres of milk daily.

In the agricultural economy, dairy cooperatives are essential, especially in the production, aggregation and distribution of milk. Transparency and accountability depend on the efficient administration of records about milk production and sales. Conventional record-keeping has been shown to have shortcomings in terms of accessibility, accuracy, and efficiency. The introduction of digital record-keeping systems offers cooperatives a chance to improve their operational effectiveness. Digitisation offers solutions that have enabled Mau Dairy Cooperative to optimize processes such as milk collection, quality assurance, payments and check-off systems, streamlining the value chain and allowing for real-time data entry, retrieval and consumption.

'At the start, we would use cards to record farmer milk deliveries and track payments. For a small number of 40 farmers, this was very easy and straightforward. With time, it became clear that conflict and disagreements were on the rise. Without a radical shift, the cooperative would fail.' Duncan Bett, Mau Dairy Cooperative Official.

In 2022, Mau Dairy Farmers Cooperative joined as a member of the Initiative for Sustainable Landscapes (ISLA) project, with member farmers receiving support and training on fodder and pasture production techniques, improved livestock varieties and the need for reduced pressure on the Mau Forest as part of the Kenyan Governments rehabilitation and restoration efforts. Critical to this was an introduction of Sky Dairy, a platform that allowed for digitised management of cooperative activities, including farmers' milk delivery patterns, payments, extension services and training.

Within the platform, each farmer has a supply number that is updated anytime a delivery is made. This is a simple and straightforward process; once delivery is made and milk quality ascertained, the farmer receives a text message detailing the amount of milk delivered throughout the month and the cumulative cost accrued and to be expected at the end of the month.

In 2022, Mau Dairy Farmers Cooperative joined as a member of the ISLA project, with member farmers receiving support and training on fodder and pasture production techniques, improved livestock varieties and the need for reduced pressure on the Mau Forest as part of the Kenyan Governments rehabilitation and restoration efforts. Critical to this was introduction to Sky Dairy, a platform that allowed for digitised management of cooperative activities including farmers milk delivery patterns, payments, extension services and training.

Within the platform, each farmer has a supply number that is updated anytime a delivery is made. This is a simple and straightforward process; once delivery is made and milk quality ascertained, the farmer receives a text message detailing the amount of milk delivered throughout the month and the cumulative cost accrued and to be expected at the end of the month.

Sky Dairy’s automated Data Entry system addresses one of the most persistent challenges in traditional record-keeping: human error. In conventional settings, manual data entry is prone to inaccuracies due to typographical mistakes, misinterpretations, or lapses in attention. By automating this process, the system ensures that records are consistently updated and accurately reflect real-time data. This reduces the time spent on administrative tasks, allowing for focus on more strategic activities and outcomes. Further, key is the reduction of conflict that may arise due to human error.

“Before it was very common to see farmers streaming into the cooperative offices with complaints on what they have been paid against what they believe to have delivered during the month. For example, a farmer would have conviction of delivering 300 litres in the month based on personal records, but with us, due to human error we would have 250 litres. This was a big issue which threatened the survival of the cooperative.

“Today, the entire process is seamless, streamlined for the benefit and efficiency of the cooperative and the farmer. The system also allows the farmer to know how much he or she will be making at the end of month, set targets and plan accordingly.” Bett adds emphatically.

The Sky Dairy platform has also improved traceability thus enhanced the safety, quality, and integrity of milk delivered by farmers. This has improved the level of transparency and accountability that was previously unattainable with traditional record keeping. The Sky Dairy platform allows for clear records of all farmers and movement of each farmer’s milk delivery. Each transaction is time-stamped and securely recorded, making it virtually impossible to alter or delete information without detection. This level of transparency is particularly beneficial in the event of delivery of ‘stale’ milk, as it allows for rapid tracing back to the source, thereby minimizing health risks and reducing the impact to the overall aggregated milk, which may lead to huge losses.

Once the ‘rejected’ milk has been traced back to a particular farmer, Mau Dairy Cooperative has two stand-by extension officers who are tasked with following up with the farmer to ascertain the issue and offer advice.

“We have observed that since the introduction of this platform, the amount of rejected milk has drastically reduced by nearly 90%. Farmers are now more enlightened and have easier access to relevant information and knowledge.” – Mercy, Mau Dairy Cooperative Extension Officer.

The Sky Dairy platform also has an integration of a check off system where farmers can acquire services like Artificial Insemination (AI) and purchase inputs from the cooperative’s agrovet and pay later. The system operates by automatically deducting a predetermined amount from the farmer’s income against his total income. For example, if a farmer has acquired AI services totalling to 2000 Kenya Shillings, the cooperative will deduct this amount from his total collection at the end of the month or distribute it equally in the proceeding months.   

'Today, I don’t need to have ready cash to access products or services from the cooperative. As long as I am a member, I can always get what I need and pay later.' – Farmer, Mau Cooperative. 

Agricultural extension has been one of the primary approaches used to encourage technology adoption among farmers. However, traditional in-person extension efforts have been criticized for being deficient, expensive and affected by governance issues. For Mau Cooperative, two extension officers serving 1, 500 farmers against the recommended FAO ratio of 1:400 is a toll order. Through the Sky Dairy platform, the cooperative has found a way of bridging this gap. The platform has the ability to send targeted short messages to all farmers, farmers within a specific demographic in case of disease breakout and milk collectors in case of any issues arising. This is effective, fast and reduces ‘noise’ that may distort the messaging.