This was a posting by @Atheist before akuje huku na upuzi. Hope it helps someone.
Listing #166393 by ›› The_Atheist on 14-Jul-2014 10:27 pm . 888 views . 43 comments . 5 prints . 34 favorites . › Flag This Listing
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This listing is inspired by an earlier listing by @DesertScorpion where he was asking for tips on successful agribiz. The_Atheist runs a dairy farm at a place in Kimende and hereby shares some of the lessons I have learnt so far- am only 1 month old in the business, but I have been working on it for the last 2 years. First some background info about the farm.
The_Atheist Dairy Farm (not the real name) is located on a quarter acre piece of land that has the housing for the cows (provision for 20 cows and 20 calves, with capacity for doubling), the owners residence, workers residence (provision for 8 workers), a biogas plant with the gas piped to workers’ and owner’s residence, a shallow well (30 ft deep) equipped with a solar powered water pump feeding 2 10000-litre tanks (kimende hakuna maji ya kanjo!), a feed store and a farm office. The farm is supplied with electricity and also has a 10KVA backup generator. Other equipment comprise of 2 milking machines (though only one is in use at any given time), a pasteurizer (250-litre capacity), a chaff cutter and a hay baler. The farm has 20 cows and 12 calves (one died from diarrhea!). All these cows are freshians. 13 are being milked and 7 are heavily expectant. The farm is currently producing approx 300 lts per day (production expected to rise to 500 after the 7 download). Milk from the farm is pasteurized and packed in branded plastic bottles and ferried to Nairobi for sale. The farm has been licenced by the kenya dairy board as a primary producer.
The farm obtains feeds from another 12-acre piece of land primarily set up for production of fodder. This is supplemented by concentrates (Dairy meal) that is obtained from local dealers.
Here are the lessons I have learnt in my journey to realization of this farm.
- Preparation
Dairy farming is capital and labor intensive, and requires articulate planning. Have a clear business plan that is pessimistic. I have attached my business plan for those interested. Engage an expert to make the BP for you if need be. Work with worst case scenario, eg. i assumed that I will be buying the feeds, but i produce 95% of what is consumed. You do not have to start big- 3 animals would do, but dairy farming benefits immensely from economies of scale. You can mobilize the resources over time, e.g start by building the sheds, buy the equipment, build workers houses, and finally bring the animals. If you are working and are not ready to quit in favor of the farm, plan to bring the animals when you are on leave- there is no other way about it! Dairy farming can not be done over the internet or on phone. Your presence is required.
Before anything else, think of what your animals will eat. The cheapest option is to produce your own fodder if you have ample land. A rule is 0.5acres of fodder land per animal. Lease land if required. Have a provision for 6 months fodder at any given time. An easy way is to produce hay and pack it in a store well before you bring the animals. Learn how to make silage. Be ready to travel far and wide in search of fodder if need be.
- Training
If you were brought up in an environment with cows, you have an advantage- you know what NOT TO DO. I have put that in CAPs coz everything our parents were doing was WRONG for dairy farming as a business.Get professional training from the many professionals in the field. I can recommend FACT in westlands (they are on OLX) since that is where I trained. A 2 days training will give you all the info you need to start and move on. Approx 5K will suffice. Visit successful farms and spend a whole day working with them- the lessons you will learn can not be obtained elsewhere (hapo unaweza niona aside, sitakulipisha chochote na hata utapata lunch poa ya ugali na yoghurt).
- Employees
Like I mentioned, dairy farming is labour intensive. Unless well planned, all your revenue will go to labour costs. There is the milking, packaging (if you prefer to go my route), cleaning, tending to the animals, security, preparation of fodder, veterinary services, etc. I found it cheaper to have a lean well paid staff and engage casuals whenever needed. I learnt that as a rule of the thumb, have 1 worker per 10 animals plus an extra one person (economies of scale start applying here) for relieving the worker and emergencies. Hire casuals for duties like cleaning, harvesting fodder, etc. Get exposed staff. The easiest way is to poach from successful farms. The Brookside Breeders show is an excellent place to poach for good employees. Give them a moderate salary and a generous commission on production. In my case, their salary is 5K plus housing and free gas (remember kuna biogas) and water plus 12kgs of unga per month, plus 1 litre of milk daily, plus 1 bob for every litre of milk produced. They will work like nonsense. Nominate one guy as the supervisor and add him 2K responsibility allowance. Do not rely on relatives- they will DEFINITELY let you down.
Make the local veterinary guy your best friend. Put him on a retainer to be checking on your animals at least twice a week, and treat them if necessary. You will only be adding for medication. For me, 15k per month does it. You need that expert eye to catch diseases before they become a threat.
- The Cows
Forget the hype about the new breeds (akina flof—, etc), go for the well known breeds. The modern breeds require so much care such that a single mistake can lead to their death. Freshian are a good breed, or Ayrshire for those with limited fodder. Do not buy from the big farms- they will just be expensive for nothing. Buy from neighbors or get good recommendations. I have a list of reputable firms for those interested. Whichever the case, be sure to identify potential producers- there are physical characteristics that you check, and cant go wrong. You understand them during the training. Get cows that are almost calving(6 months upwards), reason being that by the time you buy them, you are too eager to get returns, and may not be best suited to take care of a non-retuning cow. Besides, taking care of young heifers presents a different challenge on its own. Be ready to spend 80-100K per cow. Do not pay more. Do not buy old cows- those that have calved before. The owner is disposing of them for some reason.
- Infrastructure
Be sure to have the correct setup for the sheds, otherwise you will be fighting diseases every day. Get ready plans from the internet. Use the correct material, eg, usiweke concrete kwa floor unless you intend to provide mattresses. Take special note of drainage and cleaning. If you dont do those right, mastitis, foot rot and labour will be on your case like leeches. Water needs to be in plenty. Set up the different sections with convenience in mind. Mechanize as much as possible, for example use milking machine to save on number of employees, hay baler to speed up harvesting, chaff cutter for fodder preparation, etc.
The waste from the cows can be a headache, but if you provide a biogas plant, you get fertiliser that you put back into the fodder production section.
- Expectations
When doing casual planning, you would say that if I have a cow that gives me 25 litres per day, I can sell at 50bob, translating to over 30k per month. Nothing can be further from the truth. A cow eats, and for you to get 25 litres, you must feed it properly. A cow gets sick and gives you 3 litres instead of the 25 you are expecting. A cow is not milked through out the year, and neither is its production constant over the productive period. Be realistic in your expectations otherwise you will lose heart even before you put the first shilling into your pocket.
- Marketing
This is business, so you need the best deal out there. You may chose to sell to Brookside for 35 bob per litre, or you hawk the milk to neighbors for 60 bob. The choice is yours, but you deserve the best. In my case, I used an innovative approach, thanks to my wife’s creative mind. A month before I started getting milk, I set up a fresh-milk kiosk, well branded but with no milk to sell. I got the necessary licences from Kanjo and KDB. I printed 4000 colorful flyers informing people of the new kiosk, the milk they will get (pasteurized, packed in clean plastic containers, handled in the cleanest way possible, produced in adherence to KDB guidelines, etc, and a contact number), and telling them why this milk will be slightly expensive than what they are used to. Every evening, I would hire 2 ladies for 200 each to distribute the flyers to people alighting from matatus between 5 and 7pm. Every morning, I would give the newspaper vendor some flyers to insert in the newspapers as he sells them. 100 bob was doing the magic.
Within the first week, people had already registered as clients even before the milk came. Thus, I had no challenge penetrating the market, plus I was able to sell my milk at a higher price than the competitors. Whereas my approach may not apply everywhere, study your target market and innovate an effective marketing plan. Key words: Branding and Value addition.
- Records
Keep a record of everything that happens in your business. For example, I keep a daily record of who feeds which cow, who milks which cow, daily production, expenses, sales, etc. Create simple graphs to show the trend for each animal. Analyze the info to see if a certain worker hananga bahati akikamua ngombe lazima ipunguze maziwa, etc. That way, you are able to see when things are just about to go wrong and act. There are applications for doing this (am yet to get one), but a nice laptop and excel is a good start.
And that, ladies and gentlemen, is my lesson for today. Tujandliane sasa.
Drflowerflawa 14-Jul-2014, 10:41 pm, reply_1375411 › Flag
Great piece .
›› treb http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image001.jpg 14-Jul-2014, 10:41 pm, reply_1375412 › Flag
hmmm nice ideas. naona wea ama be headed a year down the line. nataka save buy kashamba n start that biz kwangu
›› Wheelz 14-Jul-2014, 10:50 pm, reply_1375422 › Flag
@Atheist : Kindly indulge more on the food numbers. More so, how much does it cost to feed your herd?
›› paparatzzi 14-Jul-2014, 10:57 pm, reply_1375428 › Flag
Very informative, I feel happy when I see a lister share insights into his/her biz. In dairy farming,feed is the king,if you slack in feeding you could end up using all your profits on that. Innovation is the way to go, hydroponics could help, albeit not greatly, buying feeds from the supermarket whilst you can ‘manufacture’ yours with even better nutrients is advised, but all in all biashara ya maziwa ina pesa if done correctly. And one thing about it is that its a continous learning process. Dr murungaru plays music to his cows, he is one of the most succesful guys in the industry…
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image001.jpg 14-Jul-2014, 11:04 pm, reply_1375435 › Flag
Thanks guys.
@wheelz, I have a farm that produces fodder. 3 acres are on maize (at different stages), 3 on Lucerne and the other 6 on bhoma Rhodes grass. I feed the cows on a mix of the three, with grass having a major share. whenever I harvest any of the above, I dry it except for the maize stalks (sp) to increase the Dry Matter content. I never use nappier grass- haina DM poa, which is the key requirement for milk production. Every animal also gets 3its of dairy meal per day, except for the pregnant ones. I would say I spend like 90k on feeds-production and purchase.
In my projection, I had budgeted for purchasing a bale of hay at 270, and each cow eating three quarter daily plus a bag of dairy meal.
›› chuka 14-Jul-2014, 11:14 pm, reply_1375444 › Flag
your from delight, right ???
›› Msuper 14-Jul-2014, 11:32 pm, reply_1375461 › Flag
Am impressed sir… keep it up.
›› chalky white 14-Jul-2014, 11:38 pm, reply_1375465 › Flag
This listing is very different from others I see on this site. Most listers come to tell us (more like brag about) their successful businesses only to go quiet when other listers get interested enough to request for more info. Kudos sir. I hope to consume milk from The_Atheist Dairy Farm (not the real name) soon.
›› crazydude http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image003.jpg 14-Jul-2014, 11:46 pm, reply_1375467 › Flag
I wish I read this 3 years ago. I tried dairy farming and failed spectacularly. I realized late it cant be a side gig, you have to be there hands on completely.
›› Msuper 15-Jul-2014, 12:04 am, reply_1375478 › Flag
@crazydude Going by what i have read, i too have saved myself alot of pain and heartache. till i get time to be there hands on…no dairy farming for me. those plans have been shelved to a date in the later future…
›› Samco 15-Jul-2014, 12:23 am, reply_1375482 › Flag
From my experience,its not an easy venture.I always tell people that its not the capital that matters,but the expertise.Better manage it yourself.
›› crazydude http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image003.jpg 15-Jul-2014, 12:27 am, reply_1375484 › Flag
@The_Atheist, congrats. I learnt the hard way farming takes alot of hardwork, disciple, patience and skill. 25% is theory, 75% experiance.
@Msuper, the pressure was so much that i used to get a mini-panic when my phone rang. 9 out of 10 times was always bad news. Cows eat like a factory, you will feed them everything upto a point you forget to eat yourself. The long 16 hrs (two jobs) a new born baby in the family and constant need for finances. Nilichoka.
›› Samco 15-Jul-2014, 12:48 am, reply_1375493 › Flag
@ crazydude,for my case,the farm handlers would steal anything,from milk to animal feeds.They would even lie how the cows are sick,little did i know that the vet alikuwa amewekwa kwa mpango.Made a loss for one good year.Would later learn from my mistakes.
›› Isaack Newtøn Sonko 15-Jul-2014, 1:16 am, reply_1375502 › Flag
-I’ve got a small piece of land uko thika__anyone interested in purchasing it to start this biz?
-.Atheist this is nice; join wale watu wa shamba shape-up ama ur the guy?
›› Cirledot 15-Jul-2014, 3:31 am, reply_1375512 › Flag
::: Good read :::
This is quite informative.
What wud u advise aperson with a farm in aplace like joska on kangundo rd.
the place is relatively dry but rcvs heavy rains during the wet season.
The other challenge i xperienced is poor revenue collection from ppl who do not pay cash.
›› x-trail 15-Jul-2014, 5:14 am, reply_1375521 › Flag
good info keep it up
›› Luther12 http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 5:43 am, reply_1375522 › Flag
Very good info @Atheist, thank you. I have every intention of heading this way one day. Shamba iko lakini muda hamna. Congrats on the venture, your marketing approach was very impressive!!
›› warlie 15-Jul-2014, 6:13 am, reply_1375529 › Flag
Very good read sir. No wonder that is where rich civil servants retire to. But just a thought, is it not possible to put up parallel structures? Poultry, goats, dogs and green houses?
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 6:21 am, reply_1375531 › Flag
Thanks guys (pole I had to sleep after posting) . @crazydude has put it well, experience is everything.
Again, you may not be there 100%, so put controls to alert you when the workers get fishy, eg there’d be no way a cow that does 10 lts will go to 7 in your absence and return to 10 when you are back. At such point, fire somebody!
Again, and this should actually have been part of the writeup, operate the different sections of the farm as separate business units, eg the fodder farm ‘sells’ fodder to the ‘milking’ unit which then ‘sells’ milk to the kiosk. Work with Market prices for this. That way, you can easily catch inefficiencies and if need be focus on your strong area and close (yes, I mean close) the loss- making unit. If for example the milk kiosk operates at a loss, I would shut it down and opt to sell to other pole at the local market prices. Infact, the kiosk is my wife’s side hussle, na ninamuuzianga cash!
Btw, I may need to invite the shamba shapeup guys - there’s always room for improving.
@chuka, sijaelewa swali lako.
@cirledot, dairy cows thrive best in moderate areas. At your Joska land, I see an excellent market but a big challenge in fodder production. if the land is a good size, consider irrigation or if not, lease some land in interior places around gatundu or ruiru and produce the feeds there. Economies of scale will favor you.
As regards pple buying on credit, hey, this is Kenya. That’s what we all do. Plan your cashflow and LOCs with that in mind, and while at it plan for bad debts.
Am sure someone somewhere is doing it better. Bring on the ideas.
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 6:24 am, reply_1375532 › Flag
@warlie, good point, but there’s the risk of biting more than you can chew. Move gradually in that direction.
›› Cirledot 15-Jul-2014, 6:42 am, reply_1375536 › Flag
::: Thanks :::
The joska land is big, actually > 3acres,am already doing a well to start off ,borehole in long term,roads are a bit of a problem but we hope the county gov is planning to turn em 2 all weather.
electricity nayo imewekwa recently.
This is the way to go
›› mizzk 15-Jul-2014, 7:38 am, reply_1375566 › Flag
nice read quick question r u the IT guy that waz featured by jeff on the bench.
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 7:47 am, reply_1375571 › Flag
^^^Hehehe, no. Though the guy is my friend and inspiration.
›› mshale 15-Jul-2014, 8:32 am, reply_1375611 › Flag
@ Atheist…sikuona hii…Have a clear business plan that is pessimistic. I have attached my business plan for those interested…where’s the attachment?
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 8:50 am, reply_1375635 › Flag
Pole nyote for the missing BP. Not sure what happened. Will upload it once back to my laptop.
›› David 15-Jul-2014, 9:10 am, reply_1375677 › Flag
ive seen your milk kiosk in imara…@athiest.
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 9:29 am, reply_1375706 › Flag
^^^^^hio Si yangu , but shhhhh. Anonymity still observed.
›› seeker 15-Jul-2014, 9:41 am, reply_1375726 › Flag
Where is the business plan? am interested.
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 10:04 am, reply_1375748 › Flag
Am wondering why the projections sheet ain’t showing yet when I edit the listing I can see it.
Someone alert the Admin to do some magic. The complete bp is quite huge~ 6MB, but have emailed it to admin to upload it too.
›› Guy_Far_far 15-Jul-2014, 11:46 am, reply_1375887 › Flag
Would you mind sending it via email?
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 12:17 pm, reply_1375950 › Flag
no problem @Rejectt
›› nindoz 15-Jul-2014, 12:27 pm, reply_1375960 › Flag
@atheist, send me the BP via email please
›› desertscorpion 15-Jul-2014, 1:28 pm, reply_1376037 › Flag
@ Atheist, thats quite a good read,I’m humbled to see you kept your word on my post.now I see why Ulisema kabambe haiwes make,haha! its incredible that’s a journey of two yrs but operations only for 1 month.id Love that BP,drop me one at [email protected], I still feel the need to Visit like we had discussed in my agribiz post, directions from hapo kimende fuel station would suffice plus the preferential dates for visits.reading your post I realise I’m miles away but the determination is there.one thing I note is the requirement to be present almost always and the need to lease land that can give one silage Atleast for 6 months.I now know I have to switch priorities from looking for heifers to First setting up everything in the Farm and growing the fodder too.as I do that I can do visits Coz like u said the structure layout can make or break you and I prefer practical solutions, that’s what I Did when I started my piggery. drop me that info @atheist. @samco, directions?
›› Hujumaa 15-Jul-2014, 2:47 pm, reply_1376138 › Flag
How come only favorited seven times?
›› PAMBA http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 3:27 pm, reply_1376222 › Flag
favaurited this listing and when i grow up i want to follow your footsteps@ atheist.
›› mshale 15-Jul-2014, 7:29 pm, reply_1376490 › Flag
@Atheist unaweza weka hio BP kwenye google drive?
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 7:54 pm, reply_1376513 › Flag
Thanks guys. its my pleasure to see that my listing has inspired you.
@reject and desertscorpion, check your mails. I welcome you to visit on any saturday for the visit. I leave nbi at 6am so we can go together and return at around 7pm. No charges, lakini nawesa kunywa moja tukitoka job.
@mshale, weka email I send you.
›› kijanamrefu 15-Jul-2014, 8:08 pm, reply_1376521 › Flag
@Atheist
Big up and hongera. The amount of patience it takes to even pen this listing, leave alone the farm, is applaudable!
›› crazydude http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image003.jpg 15-Jul-2014, 8:15 pm, reply_1376529 › Flag
^^^even worse, only Atheist know how much he burnt before he got wiser in the business. I know mine and i have been too embarassed to tell anyone.
›› Luther12 http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 8:18 pm, reply_1376534 › Flag
^ hehehe…out with it mblo!
›› Guy_Far_far 15-Jul-2014, 8:50 pm, reply_1376555 › Flag
haijaingia @Atheist, pliz check the address again. I will be grateful.
›› Guy_Far_far 15-Jul-2014, 9:13 pm, reply_1376573 › Flag
Thengio very much
›› The_Atheist http://www.kenyatalk.com/file:///C:\DOCUME~1\ADMINI~1.NJI\LOCALS~1\Temp\msohtml1\01\clip_image004.jpg 15-Jul-2014, 9:24 pm, reply_1376592 › Flag
@kijana. werokamu. I actually took a whole hour working on it!
@Crazydude n Luther, very true. Some details have been omitted coz it’s embarrassing to put them here. Reminds me of that saying about success being like pregnancy- everyone congratulates you but no-one has an idea how much you were ferked to get there.
@Reject, karibu sana.