The Informal Market: Don't Over Look It

2014-2015 GLOBAL FOOD POLICY REPORT IFPRI THE INFORMAL MARKET: DON'T OVERLOOK IT Policies banning or ignoring informal milk markets are counterproductive. Kenya is a positive example of how introducing improved technologies and standards to milk producers and traders can boost food safety and generate economic returns. WHO IS PRODUCING Around 700,000 small farms each owning 1-10 cows produce 80% of the country's KENYA'S MILK? milk, 3-5 BILLION LITER S PER YEAR. WHO IS SELLING KENYA'S MILK? = 10 million liters 100,000 S 80% OF MILK 70% About 70% of milk in Kenya is sold through informal markets. 4,000 MEDIUM SCALE VENDORS REDUCING KENYA'S SPILT MILK By certfifying the training of traders and their milk operations, the Kenyan government reduced milk loss stemming from: 1. adverse police actions, 2. milk becoming wasted and spoiled, and 3. direct confiscation of milk and containers, 24,000 SMALL-SCALE VEND ORS US $26 WELCOME TO THE INFOR MAL MARKET MILLION IN ECONOMIC GAINS contributing to USS26 million in annual economic gains. Source: S. Kaitibie, A. Omore, K. Rich, B. Salasya, N. Hooten, D. Mwero, and P. Kristjanson, "Policy Change in Dairy Mar keting in Kenya: Economic Impact and Pathways to Influence from Research," in CGIAR Science Council, Impact Assessment of Policy-Orien ted Research in the CGIAR: Evidence and Insights from Case Studies, a study commissioned by the Science Council Standing Panel on Impact Assessment (Rome, CGIAR Science Council Secretariat, 2008). FARMS 200 SMAL