By Heifer International | International Non-Profit
TARAKWO DAIRIES: THE MILK ATM
Along the busy Market Street in the town of Eldoret stands a one-of-a kind shop at the end of the block. Occasionally, a passerby makes an immediate decision and enters the shop for a quick refreshment – not for a soft drink, but for a glass of milk at Tarakwo’s milk ATM dispenser.
A customer can get one liter of fresh milk for 60 cents, or a liter of sour milk (mala) for 80 cents. The shop sells an average of about 1,500 liters of milk a day, compared to 33 liters when it first opened. In June 2016, the shop made a $3,500 net profit.
The milk ATM, which started in August 2015, is an initiative of the Tarakwo Dairies Company Limited. EADD began working with Tarakwo Dairies in 2010 with a goal to make the hub and its farmers sustainable. EADD provided the hub with milk cans, a weighing scale, a cooler and a generator. Tarakwo Dairies started collecting milk in February 2010, starting at 66 gallons per day. In December 2015, it received its peak milk volume of over 5,150 gallons per day.
Throughout its engagement with EADD, Tarakwo Dairies has not only realized increased volumes in milk production, but it has acquired various assets. The hub provides services to farmers at a small fee, such as the assistance
of a community animal health worker, enabling the hub to operate efficiently. The hub also receives revenue through milk transportation.
Milk volumes continue to rise, which has increased the confidence levels of the hub management in its sustainability. However, the hub still faces challenges. For example, when processing companies buy the hub’s milk at low prices, the farmers are paid poorly. The hub is also hurt by competition from other milk traders and hawkers who offer farmers better prices.
Despite the challenges, the hub has high hopes for the future. It aims to package its milk into biodegradable materials or bottles, install more milk dispensers to reach the 60 percent of the population who are low-income earners, open a financial service association and begin processing and selling yogurt. The hub is also looking into better marketing strategies for its milk ATM to attract more consumers.
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