Project Narrative
The Entrepreneurial Development of the Dairy Value Chain (EDDVC) project was implemented by Welthungerhilfe (WHH) in partnership with the Vihiga Dairy Farmers Cooperative Society to reduce poverty and improve livelihoods for smallholder dairy farmers, women, and youth in Vihiga County, Western Kenya. Over a five-year period (2018–2023), the project supported 2,500 smallholder farmers, 500 youth, and four dairy cooperatives through skills development, enterprise support, financial inclusion, and strengthened market systems.
The end-line evaluation found the project to be highly effective, achieving 83% of its performance indicators. A value chain development approach—combining farmer-to-farmer extension, training, cooperative strengthening, and market linkages—enabled participants to increase productivity, adopt improved dairy practices, and expand their enterprises.
Significant economic gains were recorded. Average annual household income from dairy activities increased by 52%, rising from €550 at baseline to €838.75, surpassing the project target. The initiative also created 1,400 new jobs across the dairy value chain—more than double the original employment target—particularly benefiting youth through self-employment and wage opportunities in production, processing, and service provision.
Access to finance and markets improved through village savings and loans associations (VSLAs), financial literacy training, cooperative marketing, and the establishment of milk aggregation and processing facilities. These investments strengthened bargaining power, reduced costs, and increased returns for farmers. Women and youth reported greater participation in enterprise activities and decision-making, contributing to more inclusive economic growth.
The evaluation indicates strong prospects for sustainability. Many beneficiaries have already established viable dairy enterprises, continue saving and borrowing through VSLAs, and are applying technical and business skills acquired during the project. Model farms, training materials, and functioning cooperatives provide a foundation for continued learning and growth beyond donor support
Overall, the EDDVC project demonstrates that strengthening skills, finance, and market linkages within a coordinated value chain can deliver measurable improvements in income, employment, and resilience for rural households. With continued investment and scaling, this model offers a sustainable pathway for inclusive dairy sector development in Kenya.
The end-line evaluation found the project to be highly effective, achieving 83% of its performance indicators. A value chain development approach—combining farmer-to-farmer extension, training, cooperative strengthening, and market linkages—enabled participants to increase productivity, adopt improved dairy practices, and expand their enterprises.
Significant economic gains were recorded. Average annual household income from dairy activities increased by 52%, rising from €550 at baseline to €838.75, surpassing the project target. The initiative also created 1,400 new jobs across the dairy value chain—more than double the original employment target—particularly benefiting youth through self-employment and wage opportunities in production, processing, and service provision.
Access to finance and markets improved through village savings and loans associations (VSLAs), financial literacy training, cooperative marketing, and the establishment of milk aggregation and processing facilities. These investments strengthened bargaining power, reduced costs, and increased returns for farmers. Women and youth reported greater participation in enterprise activities and decision-making, contributing to more inclusive economic growth.
The evaluation indicates strong prospects for sustainability. Many beneficiaries have already established viable dairy enterprises, continue saving and borrowing through VSLAs, and are applying technical and business skills acquired during the project. Model farms, training materials, and functioning cooperatives provide a foundation for continued learning and growth beyond donor support
Overall, the EDDVC project demonstrates that strengthening skills, finance, and market linkages within a coordinated value chain can deliver measurable improvements in income, employment, and resilience for rural households. With continued investment and scaling, this model offers a sustainable pathway for inclusive dairy sector development in Kenya.