The USAID Kenya Dairy Sector Competitiveness Program (KDSCP) was established to improve competitiveness of the Dairy Industry. Flametree Systems Engineering Ltd was contracted to build capacity in selected  farmer organizations in ICT. 

Start date: June 22^nd 2009

Completion date: December 2009

Studies in the industry have revealed that such farmer organizations have internal capacities that need strengthening. They also need skills to enable them to adapt effectively to changes in their external environment. The key objective of the assignment is to build capacity of selected organizations on use of ICT and to sensitize and educate farmer organizations on the challenges and opportunities of ICT to enable them make investment decisions on ICT.

The specific objectives:

• Demonstrate to the farmer rgoups the role ICT plays in efficient financial record keeping
• Demonstrate to the farmer groups the critical roles that ICT can play in increasing the competitiveness of the Cooperatives and Small-holder Groups.
• Hold workshops with all session leaders on the importance of ICT in building efficiency in the record transactions and producing timely records
• Producing a database of certified ICT vendors  who can supply ICT equipment and services to the cooperatives and producers associations
• Strengthening all the selected organizations membership by improving members' welfare through better management efficiency, realized by using the Coopworks Farmers Association Management computer software system
• A leasing/buying scheme arranged with willing Small Business Organizations to obtain computer equipment at competitive prices 

Challenges the client faced:

• The farmer organizations incurred high running costs due to lack of system controls which affected the payment rate of milk to the farmers
• Due to the manual way of record keeping in the farmer organizations, payment disbursment is often late and is not devoid of errors
• Proper accounting records cannot be produced timely and member deliver statements is hard to produce due to the manual way of operations
• Financial records that are used for management planning like membership records of active/inactive members, gender and age composition members is difficult to obtain
• Lack of trust and confidence in the farmers organization by members 
• The farmers organizations face stiff competition from established processors who offer farmers attractive rates
• Lack of trusted ICT service providers who can offer quality support services and  reasonable prices to the rural farmer groups located away from towns

Solutions Proposed for the client

After the sensitization work, installation of CoopWorks, farmers MIS in their cooperatives that will automate all the daily society transactions. Service Providers - Certified ICT companies governed by an OLA ( Operational Level Agreement) will be identified in the geographical regions of the farmer organizations. They will be bale to offer quick, affordable and immmediate response to the farmer organizations since they will be in the vicinity of the farmer organizations.

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