{"id":105,"date":"2022-05-02T10:31:37","date_gmt":"2022-05-02T10:31:37","guid":{"rendered":"https:\/\/milkatmkenya.com\/?p=105"},"modified":"2022-05-02T10:31:37","modified_gmt":"2022-05-02T10:31:37","slug":"study-facts-on-atm-milk-segment-in-kenya-that-buyers-should-take-note","status":"publish","type":"post","link":"https:\/\/milkatmkenya.com\/blog\/study-facts-on-atm-milk-segment-in-kenya-that-buyers-should-take-note\/","title":{"rendered":"STUDY; Facts On ATM Milk Segment In Kenya That Buyers Should Take Note"},"content":{"rendered":"

This article is from a study on the ATM milk market segment in Kenya; as outlined-out by Mr. Julis Mwaura of Tassmatt Agencies Limited<\/a>, a leading milk ATM entrepreneur in Kenya and the following can be concluded:<\/p>\n

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    1. The Kenyan ATM milk market is growing but concentrated in a few towns, mainly in Nairobi County and neighbouring counties. However, there is a likely general trend of the market segment spreading to other urban areas if the sector is supported. The future potential of the ATM market segment is in targeting growing urban areas across the different counties and targeting all categories of income earners.<\/li>\n
    2. The ATM milk market is expanding based on affordability of milk compared to pasteurized packaged milk and has the potential of expanding the formal milk market share beyond the current 30%. to more consumers.<\/li>\n
    3. The flexibility in quantity of milk that is sold through milk ATM market segment has enabled consumers to access pasteurized and potentially safe milk<\/a> thus contributes to household nutritional security. However, the finding indicate that some ATM milk does not meet the safety standards that comprise its value proposition to consumers and the industry.<\/li>\n
    4. Consumer perceptions of milk quality were most important in making decisions about where to purchase ATM milk.<\/li>\n
    5. The growth of the milk ATM market is linked to a shift from the initial reliance on imported technology towards more locally fabricated machines, which has reduced reduce the cost of the machines. This has stimulated the development and expansion of fabrication and manufacturing industrial cluster. However, this has led to unregulated fabrication that is compromising the quality of these Milk ATM machines in Kenya<\/a>.<\/li>\n
    6. The business ecosystem around the milk ATM retail market is expanding opportunities for job and business creation. In addition to fabrication of milk ATMs, other businesses that have emerged include milk pasteurizing<\/a>, transportation, milk cooling systems<\/a>, milk-handling equipment, servicing of the machines and sale of spare parts for milk ATMs in Kenya<\/a>.<\/li>\n
    7. Future growth of the ATM milk supply chain is anchored on
      \ni) enhancing design of cost-effective,locally fabricated, automated quality assured machines (including calibration, CIP and improvement in energy efficiency);
      \nii) building consumer awareness on quality of ATM milk as pasteurized milk since some consumers perceive it as raw milk, and
      \niii) a stronger, well-thought through regulatory framework that are more enabling and supportive of expanding milk ATMs quality-oriented market segment. The gaps in regulations for ATM machines and ATM milk (with regulations still in the draft stage<\/em>) have implications for consumers and the regulator, in terms of food safety concerns as well as opportunistic behaviour of some fabricators, for example use of non-food-grade materials so machines are cheaper to make. With the relevant policy and regulatory framework being in limbo, there has been a rise of food safety issues in the ATM milk market segment.<\/li>\n
    8. In terms of future outlook of the milk ATM market segment, the following can be concluded,based on scenarios built:
      \n\u2022 The business-as-usual scenario (status quo) projects the future potential growth of the ATM milk market segment by factors of 2.1\u20134.4 over the next 10 years.
      \n\u2022 The ATM milk market segment is likely to grow in the future, but it is sensitive to policy andmarket changes. It has the potential to encroach on the informal milk market segment,offering an alternative source of milk to consumers and resulting in maximum growth by afactor of 5.8 of ATM milk volume supplied over the next decade.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

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