Africa | Smallholder farmers

A better life through profitable cattle

5 mei 2021 09:00

Many smallholder dairy farmers in Kenya own just a few cattle, and those don’t give enough milk. An income of one euro per day is not uncommon. They would like to increase their production, but don’t have access to the knowledge, financing and resources they need to do achieve that. MyFugo offers financing, knowledge and access to technologies that can dramatically improve the lives of farmers and their families.

Smallholder dairy farmer in Kenya
2020

start collaboration Rabo Foundation and MyFugo

1,800

smallholders reached

480

smallholders trained

5x

more income for participating farmers

The challenge

It’s hard to earn a living as a smallholder dairy farmer in Kenya. Long periods of drought make feed scarce and expensive, which means cattle produce much less milk than they could with more feed. Farmers also own cattle breeds that produce less milk in the warm Kenyan climate. Expanding their herds isn’t an option, because the farmers don’t qualify for loans from banks. They also often lack the knowledge necessary to increase their production and run their farms more professionally.

MyFugo: the ideal partner for the Kenyan dairy farmer

MyFugo has worked on behalf of dairy farmers in Kenya since 2018. They help farmers who earn less than 1.50 euros per day increase their income by:

providing loans to farmers who are members of farmers’ cooperatives, so that they can buy better breeds of cattle; offering microloans for investments in livestock feed, veterinary care, vaccinations against the lethal East Coast Fever at a reduced price and artificial insemination; sharing innovative technologies. One example of their aid includes helping farmers obtain neck bands to monitor their cattle’s health. The knowledge gained helps with smart breeding strategies, with more calves and higher milk production as a result; offering training courses, peer to peer knowledge transfer and on-farm visits. With more knowledge, the farmers can care for their cattle better, so that they produce more revenue. And they learn how to run a profitable farm in the process, which strengthens their position in the market.

“MyFugo helps farmers with credit and technology to produce more, sustainable milk.”

MyFugo’s impact in 2020

5x more income for farmers who work with MyFugo 40 farmers’ cooperatives supported 1,800 smallholder dairy farmers received financing 480 smallholder farmers received training 4x higher milk production among farmers who worked with MyFugo 10x less cow mortality for farmers who work with MyFugo 13,000 extra farmers now also want financing

Rabo Foundation and MyFugo

Why did Rabo Foundation finance MyFugo in 2020, and again in 2021? Because they support innovative smallholder farmers in increasing their milk production. In the process, MyFugo contributes to two of Rabo Foundation’s important impact goals. The first is climate-smart agriculture: with better resources, cattle and knowledge, farmers are less dependent on the climate for their food production and income. MyFugo also strengthens the farmers’ position in the value chain. With more and better-quality products, it is easier for them to find buyers willing to pay fair prices for their milk.

We provided MyFugo a loan and technical assistance that enabled them to help 1,800 farmers improve their lives last year. With the technical assistance, they were able to train 480 farmers, who in turn increased their yields dramatically from 2 liters milk per cow to 8.

MyFugo in 2021

MyFugo’s approach was so effective that their name recognition skyrocketed among Kenyan farmers’ cooperatives. 11,000 extra farmers joined the cooperatives partnered with MyFugo. And more than 13,000 more farmers applied for financing or technical assistance. With a new loan from Rabo Foundation in 2021, they are already reaching many more farmers and giving them a chance to improve their lives.


Find out more about our impact in Africa in 2020. Explore our results and read more stories that showcases how we create growth opportunities for smallholder farmers.