Sustainable carbon farming and carbon credits business models for smallholder dairy cooperatives in emerging economies; A case of Kenya.

Abstract

The dairy sector in Kenya is one of the pillars for smallholder farmers’ livelihoods through the generation of income, employment, and food to 2 million people across the dairy value chain although the sector is still vulnerable to climate change. Agriterra stimulates climate-smart agriculture and carbon farming to support farmers and their cooperatives to be resilient towards climate change by focusing on enhanced productivity and increasing farmers cooperatives business model. 

Therefore, Agriterra wanted to know the dairy-related carbon farming practices adopted by cooperative members in Kenya and the business model of linking carbon farming practices to the carbon credits schemes for the sustainable service provision and carbon farming adoption among cooperative members. This research was carried out to advise Agriterra on the business model of integrating carbon farming practices into carbon farming credits for dairy farmers in Kenya. To understand the concept of carbon farming practices, related benefits, and the integration model to carbon credits schemes; the study employed literature review, online farmers survey, and online key-informants interviews. 

The study highlighted that farming practices such as planting quality fodder, intercropping trees on cropland or livestock grazing land, manure storage and producing biogas through bio-digesters have been practised among dairy cooperatives farmers in Kenya and were backed by sciences to be the potential dairy carbon farming practices in dairy. The study identified the existence of carbon credits schemes in Kenya and the viability of integrating smallholder farmers’ carbon farming practices into carbon credits schemes. 

The study determined that carbon credits dividends are almost insignificant to farmers, but carbon farming practices have severe positive impacts on the ecosystem and farmers livelihood. The analysis of both Agriterra and clients cooperative business models indicated that Agriterra is well-positioned to promote farmers carbon farming practices and increase the value proposition of its dairy clients, having a local presence and a sound knowledge of cooperatives and dairy farming.

Full Text Here