East Africa’s Dairy Sector Gets $150M Climate Lifeline

Written By: Faith Jemosop

A US$150 million initiative aimed at transforming the dairy industry is underway. The Dairy Interventions for Mitigation and Adaptation (DaIMA) programme, funded by the Green Climate Fund (GCF) and implemented by the International Fund for Agricultural Development (IFAD), is set to directly support 2.5 million smallholder dairy farmers across Kenya, Rwanda, Tanzania, and Uganda. The overarching goal: build climate resilience, cut emissions, and enhance livelihoods in a region grappling with worsening climate threats.

The dairy sector is a lifeline for millions of smallholder farmers in East Africa. Yet, this crucial industry faces intensifying challenges from climate change. Recurrent droughts, unpredictable rainfall patterns, floods, and rising temperatures are putting livestock under severe stress, reducing milk yields and threatening food security.

According to IFAD, East Africa’s dairy sector is especially vulnerable due to overgrazed lands, poor fodder quality, water scarcity, and inadequate infrastructure. Furthermore, the sector is a notable contributor to greenhouse gas (GHG) emissions, primarily from enteric fermentation (methane from cattle digestion) and manure management. Left unchecked, the sector’s emissions will continue to grow alongside the increasing demand for dairy products.

DaIMA is therefore not just a development project, it is a climate necessity.

Objectives and Scope

With a US$150 million budget, DaIMA will roll out over a multi-year period with the intention to drive transformation across the dairy value chain. The programme’s core objectives include:

1. Climate Adaptation for Dairy Farmers
   
   • Provision of climate-resilient livestock breeds better adapted to heat and disease.
     
   • Improved access to quality feed and water through pasture management and drought-resistant forage.
     
   • Construction of water harvesting systems and solar-powered boreholes for consistent supply.
     
2. Climate Mitigation Through Low-Emission Technologies
   
   • Promotion of biogas units for clean cooking and waste management.
     
   • Improved manure handling systems to reduce methane and nitrous oxide emissions.
     
   • Training in better feeding regimes that reduce GHGs from livestock.
     
3. Boosting Productivity and Income
   
   • Introduction of cold chain infrastructure to reduce milk spoilage.
     
   • Facilitation of access to affordable veterinary services and dairy extension officers.
     
   • Establishment of milk collection centers and cooperatives for better market access.
     
4. Empowerment of Women and Youth
   
   • Specific training and financing windows for female and youth-led dairy businesses.
     
   • Promotion of gender-sensitive technologies that ease workload and promote inclusivity.
     
5. Capacity Building and Institutional Support
   
   • Strengthening of local dairy institutions and cooperatives.
     
   • Partnerships with private sector processors to ensure sustainable demand and fair pricing.
     

Regional Impact

While 2.5 million farmers are set to receive direct support from DaIMA, the indirect beneficiaries could exceed 15 million people, thanks to the ripple effects across the entire dairy ecosystem. These include:

• Rural employment in dairy processing, transportation, veterinary services, and retail.
  
• Economic empowerment of women who traditionally dominate milk handling and marketing.
  
• Opportunities for youth entrepreneurship in fields like agritech, feed production, and cold chain logistics.
  

The program is expected to stimulate rural economies by injecting capital into smallholder operations and creating new income streams through value-added dairy products.

Country-Level Highlights

Kenya
Home to the largest dairy sector in the region, Kenya’s 1.8 million dairy households produce over 5 billion liters of milk annually. DaIMA will focus on arid and semi-arid areas where pastoralists are especially vulnerable to drought. Key interventions include hybrid fodder grasses, milk chilling hubs, and mobile veterinary services.

Uganda
In Uganda, dairy contributes to over 9% of the agricultural GDP. With the demand for milk rising, DaIMA will focus on reducing post-harvest losses, expanding milk bulking centers, and training youth on modern dairy farming technologies.

Tanzania
Tanzania’s dairy industry is dominated by indigenous cattle breeds with low productivity. The programme will introduce higher-yielding but climate-resilient breeds, support pasture reseeding efforts, and enhance policy frameworks to integrate climate-smart agriculture.

Rwanda
With a rapidly growing urban middle class and increasing milk demand, Rwanda’s dairy sector is on the rise. DaIMA will complement national efforts like the “Girinka” (One Cow Per Poor Family) programme and support local milk cooperatives with sustainable business practices.

Aligning with Global Climate Goals

DaIMA is aligned with the Paris Agreement and UN Sustainable Development Goals (SDGs), particularly:

• SDG 2: Zero Hunger
  
• SDG 13: Climate Action
  
• SDG 8: Decent Work and Economic Growth
  
• SDG 5: Gender Equality
  

The programme also supports Nationally Determined Contributions (NDCs) of each participating country, all of which emphasize agriculture and livestock adaptation and mitigation.

Challenges and Opportunities Ahead

While DaIMA brings promise, successful implementation will require coordinated action between governments, private sector, NGOs, research institutions, and communities. Challenges such as limited rural infrastructure, fragmented value chains, and climate information gaps must be addressed holistically.

Also read: African Development Bank Bolsters Long-Term Low-Carbon and Climate-Resilient Visions in Botswana, Gabon, Liberia, and Lesotho

The role of digital innovation, including mobile-based weather alerts, remote veterinary support, and blockchain for milk traceability, could be pivotal in accelerating impact.

A Vision for Climate-Resilient Agriculture

The DaIMA programme is more than just a climate-smart dairy initiative, it represents a vision for integrated rural development that puts farmers at the heart of climate solutions. By merging environmental sustainability with economic empowerment, DaIMA has the potential to serve as a model for agricultural adaptation not only in Africa but across the Global South.

As climate extremes continue to challenge traditional livelihoods, interventions like DaIMA offer hope, not just for survival, but for long-term resilience, prosperity, and dignity for millions of East African farmers.