{"id":92,"date":"2022-03-29T15:08:15","date_gmt":"2022-03-29T15:08:15","guid":{"rendered":"https:\/\/milkatmkenya.com\/?p=92"},"modified":"2022-03-29T15:08:15","modified_gmt":"2022-03-29T15:08:15","slug":"trends-in-the-development-of-milk-vending-atm-machines-in-kenya","status":"publish","type":"post","link":"https:\/\/milkatmkenya.com\/blog\/trends-in-the-development-of-milk-vending-atm-machines-in-kenya\/","title":{"rendered":"Trends In The Development Of Milk Vending ATM Machines In Kenya"},"content":{"rendered":"

This study analyses trends in the development of ATM milk retailing in Kenya, based on data collected in six counties with high ATM density. Trends include growth in the ATM businesses and related support services, consumer perceptions and demand and milk quality and safety issues in this milk market segment. Building on the trends analysis, the second part of the study explores scenarios that are likely to affect further growth of milk ATMs. The evidence is intended to inform the necessary policy and regulatory framework that can support quality-driven investments in this growing retail market segment.<\/p>\n

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Urbanization, increasing population, rising income levels and changing dietary consumption patterns are expected to increase demand for milk and dairy products in Kenya<\/a>. The annual per capita milk consumption of 110 litres is projected to double by the year 2030. Out of the 3.9 billion litres of cow milk consumed, 2.1 billion litres (54%) is marketed. It is estimated that about 70% of the marketed milk is traded informally, mostly in raw form, while the rest is processed into milk and dairy products and marketed formally. There has been a recent technological and market development in milk retailing in the formal milk market, called the milk-vending or dispensing machine (popularly known as the milk ATM). There has been a widespread uptake of this innovative platform for milk retail in some Kenyan urban and peri-urban areas.<\/p>\n

The research questions were:<\/span><\/span>
<\/span><\/h2>\n
    \n
  1. \u00a0What are the trends in the development of the ATM milk market segment?<\/span><\/span>
    <\/span><\/li>\n
  2. What are key co<\/span>nsumer patterns, quality and food safety issues related to the development of<\/span> milk ATM market segment?<\/span><\/span>
    <\/span><\/li>\n
  3. What businesses have emerged around ATM milk market segment?<\/span><\/span>
    <\/span><\/li>\n
  4. What are the potential scenarios that might affect the development of the ATM milk segment?<\/span><\/span>
    <\/span><\/li>\n<\/ol>\n

    This study is based on primary data collected<\/span> in<\/span> the period<\/span> between<\/span> July<\/span> and<\/span> August 2019<\/span> from six<\/span><\/span><\/em>
    <\/span><\/p>\n

    counties with a high density of milk ATMs<\/span> according to<\/span> KDB database<\/span>,<\/span> using\u00a0 mix<\/span>ed<\/span> methods<\/span>.<\/span> Survey<\/span> questionnaires were administered on<\/span> 162 ATM operators and 49<\/span>0 consumers<\/span> (from which 352 were<\/span> considered to be of<\/span> acceptable<\/span> quality<\/span> a<\/span>nd analysed)<\/span>. Key informant interviews were conducted for<\/span> qualitative information with ATM machine suppliers<\/span>,<\/span> ATM milk processors<\/span>,<\/span> the<\/span> Milk ATM Association<\/span>,<\/span> KDB officials and KDB insp<\/span>ectors. Further, secondary data was obtained from the KDB database<\/span> and <\/span>FAOSTAT and literature<\/span> was<\/span> reviewed to inform scenario development.<\/span><\/span>
    <\/span><\/p>\n

    Major findings<\/span><\/span>
    <\/span><\/h2>\n

    Trends and development of ATMs over time<\/span><\/span><\/strong><\/span><\/p>\n