Fodder Production as an Adaptation Business Case - Eor Ekule Dairies Ltd (EDL)
Eor Ekule Dairies Ltd (EDL) is a commercial cattle dairy company in the start-up phase that has recognized climate change related risks as a business opportunity to develop a new service for other related businesses.
Operating in a drought prone region of Kenya, EDL realized that the provision of fodder for the cattle was seasonally at risk, as the company and competitors were relying on natural pastures alone. These go dry during times of low precipitation and extreme heat – projected to be more extreme in the future – and animals produce less or die.
The company added the new business line of hay production to its dairy operations and now feeds it to its own herd and sells to neighboring farms as well, increasing the productivity of an entire region.
The company received USAID grant funding for business development support and successfully sourced a loan from a local commercial bank. The lending is on purely commercial terms.
The project aligns well with Kenya’s Nationally Determined Contribution (NDC) adaptation targets and the country’s National Adaptation Plan (NAP): As a minimal contributor to global greenhouse gas (GHG) emissions, Kenya’s clear priority is adaptation, specifically to enhance the resilience of agriculture and livestock value chains by promoting climate-smart solutions. The Kenya NAP has a separate chapter on livestock development, given the subsector’s importance for employment. The presented case study contributes to the development of new feed sources, fodder banks and strategic reserves – actions that are of national importance.