Ruku Dairy Goat Commercial Producer Group

Ruku Dairy Goat is a Commercial Producer Group (CPG) in Kiambu district operating under the Kahuho Commercial Village. The CPG is registered with the Ministry of Social Services and is engaged in production and marketing of dairy goats and horticultural crops including indigenous vegetables.

Following smallholder commercialization intervention implemented by Farm Concern International (FCI) through the Commercial Villages Model, the CPG is engaged in commercial farming activities that have empowered its members to not only increase their incomes but also set aside savings.

Ruku Dairy Goat CPG whose active membership is 28 Households has been running a thriving farming business enterprise with a cumulative total savings of about Ksh. 500,000= in cash and kind over the last three years. This is commendable considering an average land ownership of about one acre per household; of which about half is the homestead leaving only 0.5acres for agribusiness related activities.

The origin of the CPG spans back to 2001 when it began as a focal area group to engage in tree planting as a natural resource management initiative. In 2003, the group diversified to dairy goat farming with further diversification to traditional vegetables in 2004 following FCI’s intervention. Ruku group has now not only fully adopted indigenous vegetables as a business venture but also as a ‘cash cow’ business unit in their farm enterprise business portfolio. The vegetables that they produce and market include Amaranthus, Spider plant, African nightshade, Kales, Coriander, among others with the indigenous vegetables being most preferred because of their short maturation cycle.

The group is very focused with plans to adopt green energy through adaptation of biogas cookers at a cost of Ksh 50,000= per group member, with two fold benefits of saving on energy costs while conserving the environment.

Market Access and Sales

The major target market for the group is the informal markets that absorb over 60% of the fresh indigenous vegetables produce in the domestic market. These markets include Wangige rural open air market as well as Wakulima and Gikomba urban markets in Nairobi.  However, the group is in the process of expanding their market to include the formal market segments including supermarkets and grocery shops in Nairobi urban areas. Ruku CPG’s proximity to the local and Nairobi markets gives it a competitive advantage and a window for market expansion.
Individual members’ sales of vegetables average  between Ksh16, 000 to Ksh 20,000 per month translating to the CPG’s  total monthly revenue of  about Ksh 560,000=

Group Savings and Record Keeping Culture

Groups saving culture coupled with focus and good planning has further enhanced the CPG’s cohesiveness and sustainability. This is due to the direct benefits derived from savings with a common priority of pooling funds together to enhance their business operations by injecting working capital whenever there’s a shortfall. Members are able to consistently save up to Ksh 800 - Ksh 1000 on a monthly basis. Through the members’ savings, the CPG has managed to open two group accounts and a fixed deposit account with local financial institutions. The Fixed deposit account has Ksh 42,000 and the rest in accounts totaling to about Ksh 150,000. Other benefits include asset accumulation and the capacity to save and purchase farm inputs collectively and at discounted prices from suppliers’ including seeds, pesticides, manure, and spray pumps.
Assets accumulation through purchase of both physical and financial assets including stock, household items as well as paying school fees among others.
Through the commercial village model, various subcommittees have been tasked with various responsibilities including production, financial and marketing subcommittees and all records and documentation are kept and maintained through proper recording and filing systems. The CPG also maintains a savings and credit passbook among other records introduced through FCI’s intervention.