Table 2.

Potential upgrade recommendations for the Nairobi diary value chain.

Key message	Potential upgrade recommendations
•Large informal sector in operation, with numerous interlinkages with the formal sector.	Policies that allow regulating the informal sector without disturbing access of milk to low income households. Informal sector supplies a significant amount of milk through mobile retailers. Further research on the importance of these to distribute milk to low income consumers and their potential upgrade need to be considered.
•Low herd size of the majority of dairy farms in urban and peri-urban Nairobi, including in farmer in cooperatives. Plus 89% of farmers classified as long-term supplier to the large processing companies are also small scale. •Most farms operate independently (no association or outside of cooperatives) •Source replacement animals through neighbours and through rumours •Lack of used of veterinarians	These are likely to be less efficient (in terms of production and conversion of inputs, and their costs) that modern medium or large farms. Large processing companies could see their supply system more reliable if they develop programs to help their farmers increase their herd size and upgrade their farms. System upgrade is recommended to increase herd size, either through association of farmers, who could share cost of inputs, improve breeds, access to qualified veterinarians or animal health providers and the access to milk distribution chains. There is need for upgrading programs to create more cooperatives or motivate farmers to join in cooperatives. However, farmers using these as subsistence (so for own consumption) might not be able to do this.
•Lack of cold chain in milk transport. Milk rejected and given to pig farmers or sold a low price, indicating losses in revenue and system efficiency. •Use of plastic containers by many transporters in the informal sector •Use of public transport	Upgrade to improve cold chain and improve creation of milk chain from more distant areas where production could be more efficient Upgrade the type of containers. There is a need to understand the drivers for using the different type of equipment. Provide capacity to traders and farmers to efficiently transport their milk Need to understand to what extend the wastage of milk is a problem. Future research on this is recommended.
•Only 20% of traders are DTA •Only 40% of DTA have training	Require investigation of drivers on why traders are not joining the DTA. Upgrade is needed regarding how to include Non-DTA into the regulated system. Increase provision of training to also DTA and non-DTA is needed to ensure food safety practices and efficient operations of the chains.
•Lack of value addition by independent farmers, non-DTA traders and medium size cooperatives.	Training on this could help them to access better markets and prolong the life of their products. Careful consideration should be done, as this are the chains that most likely reach low-income consumers.
•Lack of chilling facilities for independent farmers and medium size cooperatives.	Policies to support loans or development of chillers could be considered.