MBULIA COMMUNITY CO-OPERATIVE SOCIETY LIMITED

PROJECT NAME: AGRI-FEEDLOT BUSINESS PROJECT

PROJECT LOCATION: TAITA TAVETA COUNTY, VOI SUB-COUNTY, NGOLIA

WARD

FUNDING AGENCY: WWF

PROJECT DURATION: JANUARY 2023 – DECEMBER 2024

IMPLEMENTING AGENCY: MBULIA FARM

TECHNICAL SUPERVISOR: WARD LIVESTOCK PRODUCTION OFFICER

MONITORING AGENCY: SUB-COUNTY LIVESTOCK OFFICER AND

CONTACT PERSON: CHARLES MWAIZINGA, CHAIRMAN – MBULIA

COMMUNITY COOPERATIVE SOCIETY LTD

MANAGEMENT CPA MWAMBINGU MWATEE

CONSULTANT FEDOS CONSULTANTS
P. O. Box 722 – 80300, Mazeras, Voi,
P. O. Box 990 – 00618, Ruaraka, Nairobi +254
722 448 173, +254 733 756 627
fedosconsult@gmail.com

GROUP CONTRIBUTION: (In- KSH.1,502,000

kind contribution

FUNDS REQUESTED: KSH.14,459,046.50

TOTAL PROJECT COST: KSH.14,961,046.50

EXPECTED TOTAL 6000 MEMBERS

DIRECT: BENEFICIARIES:
36,000 PEOPLE
EXPECTED INDIRECT
BENEFICIARIES:

DATE OF PROPOSAL 21ST NOVEMBER 2022

SUBMISSION:
TABLE OF CONTENTS

ACRONYMS ..............................................................................................................................................2
PROJECT SUMMARY .............................................................................................................................3
INTODUCTION .........................................................................................................................................4
ABOUT MCCSL ........................................................................................................................................5
OBJECTIVES OF MCCSL .......................................................................................................................6
SITUATIONAL ANALYSIS OF MCCSL ...............................................................................................7
PROBLEM STATEMENT ........................................................................................................................9
RATIONALE FOR IMPLEMENTING THE PROJECT ....................................................................10
PROJECT GOAL & OBJECTIVES ......................................................................................................10
PROJECT IMPLEMENTATION ..........................................................................................................11
STRATEGY & ACTIVITIES .................................................................................................................11
EXPECTED OUTPUTS AND OUTCOMES ........................................................................................12
BUDGET ...................................................................................................................................................12
CONCLUSION .........................................................................................................................................12
APPENDICES ..........................................................................................................................................13

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
ACRONYMS
FEDOS – Farm Enterprise Development & Organizational Solutions
MC – Management Consultant
MCSSL – Mbulia Community Co-operative Society Limited
MSE – Micro and small enterprises

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
PROJECT SUMMARY
Agri-business Feedlot project is an initiative of MCCSL through Mbulia Community Land where the
project shall consist of production of cows and goats for primarily meat product and secondary products
like milk, skin, furs, manure among others.

Mbulia Community Co-operative Society Ltd (MCCSL) with a membership of over 6000 members, with
majority being women and youth, shall participate in the project. MCCSL structure is composed of 50
delegates who represents at least 120 members each, 9 delegates who forms board of directors, 3 delegates
who form Supervisory committee, and management appointed by the Board of directors.
The project shall organize the members into two clusters namely women cluster enterprises and youth
cluster enterprises. These cluster shall observe the gender rule as provided in the Kenya Constitution, while
ensuring youth are given the opportunity to fully participate in the project.

There shall be 50 clusters of 120 members each hence the project targets initially 6000 members. The
project targets to establish 1 feedlot on 10 acres of community land, which shall act as Farmer Field School
for training and edcucating the 6000 members who will later establish other feedlots on the land which the
Management Committee shall allocate each cluster of 120 members each.
It is estimated that one feedlot will accommodate upto 500 cows and 2000 goats being a ratio of 1:4
respectively.
The cost of one feedlot on 10acres of land is estimated at Ksh.15,961,046.50 (approx. $133,008.70)

This project is expected to be implemented for two years which will help members acquire a full cycle
knowledge and skills in operations and management of Feedlot.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
INTODUCTION
The agribusiness industry of which livestock farming is a subset, is among the leading industry in
most countries of the world; it is the industry that produces food for the populace and raw materials
for industries. Because of the significant role the agriculture sector plays, the government of most
countries ensures that they go all the way to subsidize seedlings, fertilizers, and farming
implements and machinery for farmers and also encourage entrepreneurs to go into various kind
of farming.
Livestock farming is of course a thriving and profitable business because of the usefulness of their
meat and other by products. People eat meat, drink milk, and use fur and skin in different ways.
With milk, cheese can be made, along with other dairy products. Some farmers use cattles for
weeding farmland. The diet of the domestic cattle includes eating grass, leaves, shrubs, root
vegetables, and other kinds of plants.

Livestock Farming industry is indeed a large industry and pretty much active in countries such as
United States of America, Israel, Egypt, China, Germany, Turkey and Nigeria etc. There is no
single livestock farming company that has dominate market share in the industry hence smaller
livestock farming business can successfully make profits. Statistics has it that in the United States
of America alone, there are about 51,712 registered and licensed livestock farming business
responsible for employing about 67,814 and the industry rakes in a whooping sum of $5 billion
annually. The industry is projected to enjoy 1.4 percent annual growth.

Kenya has over one million small-scale dairy farmers who keep over 70 per cent of approximately
four million cattle producing about 4.3 billion litres of milk every year.
The official estimates by the Kenya National Bureau of Statistics (KNBS) show that the Kenya
population presently stands at 50 million and is projected to grow to 96 million by 2050—pilling
pressure on food supplies. Consequently, the demand for animal-based foods will increase
exponentially, requiring a transformation of the livestock sector. Kenya is now embracing
technology in the livestock sector and producing climate change resilient and high yielding animals
hence achieving the big four agenda on food security.

One thing is certain about cattle farming business, if you can conduct your market research and
feasibility studies, you are more likely not going to struggle to sell your cattles because there are
loads of people out there who eat meat, drink milk and industries that make use of byproducts
from cattles in manufacturing their products.

Over and above there are few barriers to entry into the livestock production industry. Usually, all
inputs are readily available. In the nearest future, players in this industry may face the highest
costs associated with accessing technology, especially in relation to genetic modification
engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new
entrepreneurs coming into the industry will need to pay license fees and this of course will cause
increase in the start – up fee for starting a livestock breeding business.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
 ABOUT MCCSL
The Co-operative is registered under The Co-operative Societies Act Cap. 490 with a registration
number CSI 2619. The co-operative is located in Ngolia Ward, Voi Subcounty in Taita Taveta
County and its registered offices are in Manga Camp. The Co-operative was formed as a special
purpose vehicle for Mbulia Community Land which owns 37000 acres of land strategically located
along Nairobi-Mombasa highway. It boarders from the East, the Tsavo National Park and from
the West, three (3) key infrastructures namely the Nairobi-Mombasa highway, the Standard Guage
Railway (SGR) and the Kenya pipeline. The land is about 150 km from Mombasa city which gives
it a great potential for establishing special agricultural economic zone which can attract
investments in Industrial Park, Agritourism, EPZ among others.
The interim Board of Directors are,
1. Charles M. Mwaizinga – Interim Chairman
2. Esther N. M. Wambeo – Interim Vice Chairman
3. Cosmus M. Mwang’ombe – Interim Secretary
4. Monica M. Mstiri – Interim Treasurer
MCCSL is guided by the following Co-operative principles
a) Open and voluntary membership
Membership to a co-operative is open to all persons who wish to benefit from co-operative
membership and are willing to accept the corresponding responsibilities without gender, racial,
social, religious or political discrimination. One is free to leave at any time.
b) Democratic member control
Members have an equal voice commonly referred to as “One member one vote”.
c) Member economic participation.
Members contribute equitably to the capital of their co-operative. The economic benefits of the
society are returned to the member, reinvested in the society or used to provide member services.
Members control the capital of the co-operative.
d) Autonomy and independence
Co-operatives are autonomous, self-help organizations controlled by the owners. They enjoy
political, religious, racial and tribal neutrality.
e) Education, training and information
Co-operatives provide education and training to the members so that they can effectively
participate in the development of the society. They also inform the general public.
f) Co-operation amongst co-operative enterprises
Co-operatives will serve their members better if they work together among themselves at local,
regional, national and international levels.
g) Concern for the community
The co-operatives should work towards sustainable development of their communities through
policies accepted by members.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
OBJECTIVES OF MCCSL
The objects for which MCCSL is established, are to organize and promote the welfare and
economic interests of its members by;
a) To arrange for co-operative marketing, processing, grading, packaging and transporting the
members produce and such other operations as may be necessary for the most profitable
disposal of the produce.
b) To arrange for the purchase and resale of farm inputs and chemicals and other similar
requirements of the members.
c) To take measures to control pests and diseases.
d) To foster education and training to members, committee members and employees.
e) To provide co-operation and good will between members and the society.
f) To Co-operate with other co-operatives in order to promote members Interests and in
furtherance of the society's objectives.
g) To apply the co-operative principle of co-operation among co-operatives in order to promote
members' interests. And in furtherance to the objects of the society affiliate to the relevant
National Co-operative Union and the Apex society.

MCCSL in an effort to attain its objects, and as permissible under the Act, rules and by-laws, has
strategically planned to undertake the following projects; a) Agri-feedlot and rescue project
b) Human-Wildlife Conflict management projects – Sunflower farming, Dragon Fruit farming,
Bee keeping among others.
c) Mitigation of severe drought and famine projects – Planting of drought resistance crops
d) Water resource management projects
e) Seed bulking projects
f) Agritourism and conservancy project
g) Establishment of Mbulia Savings and Loans Groups (KSLG)
h) Set up of a CBC Hub for knowledge and education for members children’s and community in
general.
i) Transport facilitation
j) CSR – Community Social Responsibility

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
SITUATIONAL ANALYSIS OF MCCSL
The Co-operative having been formed as special purpose vehicle for Mbulia Community Land and the
drive to implement the project, has done the SWOT analysis of the project as tabulated below;
1. Strength Weakness Opportunity Threat analysis of the project (SWOT Analysis)

Strengths Weaknesses

1. The Farm has adequate land for pasture establishment 1. There is a lot of underutilizations of
and conservation to feed the cattles well even during the land. With this project the land
dry season hence it will make the project cheaper as will be effectively utilized.
feed is the variable cost with the highest cost in 2. Lack of proper fencing; the project
livestock production. proposed to use the thorn trees
2. The farm is located around a permanent water source (sanzu) to fence the perimeter of the
which makes it possible for the farm to do pasture farm and procurement chain link to
establishment without any problem. fence around the cattle structure.
3. The group is frequently visited by a technical livestock 3. Inadequate funding and limited
officer for technical advice in livestock production. capital; this proposal seeks to
4. High demand for meat cattle in Voi town and the entire partner with Red Cross and any
Taita Taveta county plus the big cities like Mombasa other donor in the implementation of
and Nairobi which are the most targeted markets. this project so as to solve the
5. Active group members who are very sacrificial for the funding problem.
success of this group farm.
6. The farm is easily accessed. There is a feeder road
leading to the farm
Opportunity Threats

1. Cattles keeping is a Key strategic enterprise in Taita 1. Disease outbreak like CCPP which
Taveta County and therefore large number of is common in the area.
subsistence cattle farmers in the area will embrace and 2. Invasion of cattles by Wild animals
adopt this system of feedlot production. like the Hyenas and lions while
2. There is room for expansion of the land if the group is grazing.
supported with funds to do more bush clearing. 3. Theft of cattles while out for grazing
3. Cattles have a short gestation period (only 5 - 6 or at night when in their sleeping
months) and often give twins. The Average kids per area.
cattle are thus 1 - 3 kids per annum. 4. Cattles can overgraze and damage
4. Cattles feed by grazing and browsing, feeds at the environment if not looked after
different heights, stand on hind legs to reach food, properly
climbing into trees hence easy to keep in this farm.
5. Cattle farming uses small doses of medicine (drugs)
which is cheap and easy to maintain

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
2. Risk Analysis and Management

Risk Likelihood Impact Mitigation Strategy

Cattle raiding Likely Low Fencing the farms, physical
security

Cattles intruding and destroying Unlikely Low Employ herdsmen and fencing
neighbors’ gardens the farms
Disease outbreak given that the Likely Low Collaborate with the Ward
cattles will be confined in the Veterinary officer for frequent
farm examination of the flock and
give technical advice on
disease control
Failure to secure enough funding Unlikely Low Will approach other donors for
for the project support/ funding.
Continue with members
contributions drive
Seek credit facilities from
agribusiness, MSE,
microfinance or sacco
Failure to secure enough Unlikely Low Will create market linkages
competitive Market mostly for with other livestock traders
the cattles

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
PROBLEM STATEMENT
Livestock farming is one of key pillars in enhancing food security which is one of the Big Four
(4) agendas of Kenya. The farming has been majorly done in the semi-arid areas in Kenya where
small holders farmers are poorly organized thus contributing to low farm production and income;
market networks are weak, thus contributing to poor access to markets, high traction costs and
low value addition to livestock produce; and agriculture financial services are inadequate, thus
contributing to low investments in livestock production and in agri business based MSE.

Therefore, the project is aimed at transforming the livestock farming from its subsistence and
informal systematic state to a more organized and commercially viable production and value chain
enterprise.

The project will also offer a learning and knowledge base for other farmer co-operatives and
individuals through its FFS programme in the project location.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
RATIONALE FOR IMPLEMENTING THE PROJECT
This project aims at increasing member’s capacity to manage and produce more livestock for
selling to the designated markets thus increasing their revenues for meeting their needs and
investment. The co-operative members who constitute mainly women and youth play a very key
roles in the household management in terms of providing basic needs, labour and security.

Therefore, recognizing high growth rate and the twinning ability of livestocks, we are convinced
that livestock farming, commercially, can go a long way in eradicating poverty in Taita Taveta
County given its readily available market, both locally, nationally, and internationally. Further,
the land where the Society intends to undertake the project has readily available water source
which is key factor for production. Members support for the project through the availability of
enough arable land in the location, is a clear indication that the project will be successful.

There are many advantages of livestock farming and as the project is centered around cows and
goats, the co-operative members will benefit since they mature quickly and therefore can attain
market weight very fast; they are hardy animals and can therefore with stand harsh environmental
conditions; they multiply very fast because of the high rate of twinning; among other advantages.

PROJECT GOAL & OBJECTIVES

The project goal and objectives are within the object of the Co-operative Society of organizing
and promoting the welfare and economic interests of its members. Therefore, the general objective
and specific objectives of project are as described below.

General Objective

The overall objective to establish a Cattle Feedlot System and Knowledge Centre for food security
and poverty eradication in Mbulia ward, Voi sub-county, Taita Taveta County.

Specific Objectives

i. To increase production of cows and goats for supply to the market

ii. To increase members income for investments in the co-operative society
iii. To establish a knowledge and information center for livestock farming in the County.
iv. To increase land utility for the production and marketing of the livestock farming
v. To purchase 300 Gala Goats (100 Bucks and 200 Ewes) which are almost ready to mate.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
PROJECT IMPLEMENTATION
The project will be implemented in a period of two years, where it will majorly be capacity building and
establishment of Feedlot as a Farmer Field School for livestock farming. Monitoring and evaluation
reports will be done on quarterly basis.

The project implementing team will the Society, Donor representative and the management consultant.

STRATEGY & ACTIVITIES

Gantt chart
Project Y1 Project Y2
Activity Q Q Q Q Q Q Q Q Responsible
1 2 3 4 1 2 3 4
Project set up and orientation of Board/Consulta
1
members nt
Member based training and
2 exposure on livestock and Consultant/Do
enterprise management nor
Materials sourcing and Board/Consulta
3
procurement nt
Bush clearing and
Board/Member
4 grounding/construction of the
s
feedlot
Board/Member
5 Lauching of the project
s
Consultant/Do
6 Project Management trainings
nor
Monitoring, Evaluation and Donor
7
reporting Representative

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
EXPECTED OUTPUTS AND OUTCOMES
The project is expected to have outputs and outcomes as follows;
a) We have 10 acres of the Farm to be bush cleared and fenced with thorn trees (sanzu).
b) The Feedlot structure be fenced with chain link.
c) Three Hundred (300) gala goats (100 Bucks and 200 Ewes procured and delivered in the
farm.
d) Ten acres of the farm be prepared for pasture establishment.
e) At least the lives of the group members with their families will be improved.
f) The risk of losing many goats during drought will be reduced because of the availability
of pasture established.

BUDGET

MCCSL WWF Kenya

Budget item Total Amount
Contribution Grant
1 Capacity Building -
1,346,750.00 1,346,750.00
2 Feedlot construction
550,000.00 2,647,500.00 3,197,500.00
3 Livestock Feeds -
2,405,000.00 2,405,000.00
Livestock Vaccines and
4 -
Drugs 296,100.50 296,100.50
6 Purchase of Livestock -
6,000,000.00 6,000,000.00
7 Labour - Wages -
952,000.00 952,000.00
8 Tools and Equipment -
1,763,696.00 1,763,696.00
GRAND PROJECT COST
1,502,000.00 14,459,046.50 15,961,046.50

The Society is seeking Ksh. 14,459,046.50 out of the total project cost of Ksh. 15,961,046.50.

CONCLUSION
This project will be implemented within the scope, time and cost so as to give the desired results
and that sustainability of the project will be for unforeseen future as the Co-operative Society is
limited liability entity.

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd
APPENDICES
Certificate of Registration

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Funding proposal by FEDOS CONSULTANTS, Management Consultant for Mbulia Community Co-operative Society Ltd