Dairy Management
From milk can to M-Pesa: pay every farmer right
Dairy Management is a finance-first dairy value-chain platform built on Frappe and ERPNext for cooperatives, SACCOs, and processors across Kenya and East Africa. Capture multi-supplier collections with quality readings, price them on butterfat and SNF bonus tiers, and reject or grade adulterated milk against KEBS standards the moment it is weighed in. The settlement engine aggregates each farmer's accepted milk, recovers advances automatically, and computes net payable after withholding tax, disbursed via M-Pesa or bank in traceable batches. Milk posts into ERPNext stock, and Kenya Dairy Board returns keep you compliant.
Collection to payment
Key capabilities
Milk Collection with Quality Testing
Record collections at the platform with quantity, butterfat, SNF, temperature, density, and acidity per supplier line. Run alcohol, lactometer, clot-on-boiling, and organoleptic tests, estimate added-water percentage, and assign KEBS A/B/C grades before milk enters the pool. Future-date and duplicate-supplier guards keep intake data trustworthy.
Quality-Based Pricing & Auto-Rejection
Configure pricing plans with a base price per litre plus bonus and penalty tiers keyed on butterfat, SNF, and temperature. Positive tiers reward high-quality milk; negative tiers penalise sub-standard deliveries. Auto-rejection rules block adulterated milk at collection based on alcohol-test failure, acidity limits, or temperature thresholds. Objective, dispute-free rejections.
Farmer Settlement, Net of Withholding Tax
Generate period settlements that aggregate submitted collections per farmer, applying withholding tax per line with per-supplier exemption support. Overlapping settlement periods are blocked, gross-to-net is computed automatically, and buyer-initiated Purchase Invoices are raised for flagged suppliers so VAT and eTIMS obligations are handled at source.
Automatic Advance Recovery
Issue supplier advances for feeds, veterinary services, AI, or transport, then recover them automatically at settlement (lump sum, percentage of gross, or fixed per settlement), capped at both balance and gross so you never over-recover. A full recovery ledger tracks balances and reverses cleanly if a settlement is cancelled.
M-Pesa & Bank Payment Batches
Convert settlements into payment batches that route each supplier to M-Pesa or bank transfer based on their profile, with success and failure tallies. Pay hundreds of farmers in one traceable run, with a linked Payment Entry marking the settlement Paid.
Raw-Milk Stock & Processing
Every submitted collection creates an ERPNext Material Receipt stock entry into the collection centre's raw-milk warehouse, valued at collection rates. Processing records create Manufacture entries capturing input, output, and conversion loss, giving processors real yield and loss visibility on valued inventory.
KDB Returns & Permit Compliance
Generate Kenya Dairy Board monthly returns in one click from collection and processing data: total raw milk, average butterfat and SNF, supplier counts, rejected volumes, and product output by type. Daily automation flags expiring dairy permits with 90/60/30-day renewal alerts so licences never lapse.
Cold-Chain, Herd & Cooperative Records
Log cooling records with hourly temperature monitoring and breach alerts to operations managers before milk spoils. Track animals, breeds, herds, and farm sites, and manage cooperative member profiles with share-capital targets and savings deductions for SACCO economics.
Why teams choose this
- Reward quality automatically with butterfat and SNF bonus tiers and KEBS grading
- Keep adulterated milk out of the pool with auto-rejection at collection
- Pay farmers accurately with gross-to-net settlements net of withholding tax
- Recover every advance automatically: never over- or under-deduct
- Disburse to hundreds of farmers via M-Pesa or bank in traceable batches
- Track every litre in ERPNext stock with auto-created Material Receipts
- File Kenya Dairy Board returns in minutes, not days
- Catch cold-chain breaches with hourly temperature alerts before spoilage