Digitizing Dairy

Thursday, June 30, 2016
Pius Sigei, head of operations at Amtech Technologies Ltd., left, explains how to use the EASMYA 6.0 software
Faith Njoki Njung'e/USAID

Meet Amtech Technologies Ltd., a Kenyan software development company that has introduced local businesses, cooperatives and 26,000 dairy farmers to a simple and promising tech solution that makes fair and fast payments possible.

Many dairy farmers in Kenya are not paid promptly for their milk, and the payment is often miscalculated or the quantity under-measured.

With a digital weighing scale, a mobile phone and a printer, the web-based EASYMA 6.0 software is changing this scenario.  The software automates and speeds up the milk collection process, increasing farmer earnings from milk sales and the amount of milk delivered to cooperatives.

“I really used to suffer losses from the manual weighing system. Now, every drop of milk is taken into account, and I am paid promptly,” Nandi dairy farmer Alfred Samoei said.

The software allows both the farmer and the buyer to view the exact weight of milk on the digital scale, and payment is calculated within moments. Farmers receive an automatic receipt and the transaction is reflected instantly in both the collection center database and at the farmer’s savings and credit cooperative (SACCO). Should the center not have enough cash to pay the farmer, he can use EASYMA to automatically request advance payment from the SACCO based on the amount of milk delivered. 

Loan transactions are processed in real time by the SACCO’s bank that is also connected to the software. Through this system, farmers can access their money through an ATM or a point of sale from anywhere in Kenya or abroad. They are also able to establish a credit history with the bank that allows them to apply for personal or business loans. Many farmers use this to purchase supplies and services to increase their milk production, such as artificial insemination and feeds. 

Last year, Alfred, who delivers approximately 50 liters of milk to the Kabiyet plant every day, received a KSH 70,000 loan ($700) for a family emergency. He now uses a portion of his daily proceeds (from about 20 liters) to pay back the loan. Through the software his payments are automatically deducted and applied to his outstanding loan. 

At present, 12,500 members of the Siongiroi Dairy Farmers Cooperative in Bomet and 13,500 from Kabiyet Dairies Cooperative Society Dairies in Nandi use the software.  An increase in the amount of milk delivered by farmers has led to the opening of an additional Siongiroi Dairy collection center in the Dikkir area of Bomet. Agricultural veterinarians affiliated with Siongiroi have reported increases in sales for feeds and other inputs as a result of the farmers’ improved income and cash flows.

Amtech is one of ten local companies that have been nominated for a stage two grant from the USAID Feed the Future Kenya Innovation Engine. Each business will benefit from rigorous testing and marketing research to expand the use of their innovation in Kenya. Other grantees include Arid Lands Information Network (ALIN), Indicus DairyiProcureLachlan AgricultureKenya BiologicsKenya Livestock Marketing Council (KLMC), Takaful Insurance of Africa and Wanda Organic.