By Felix Njenga
Worth Noting:
- “There is alot of cheap milk getting their way into the kenyan market hence affecting our milk prices. as processors we cannot afford to sell our milk as cheap as our neighbouring countries since the cost of animal feed, cost of processing milk like electricity and taxation has gone up tremendously,” he said.
- He said that farmers brought in 92,188,882 litres of milk in the society in the last year compared to 87,905,090 litres in the year 2022/2023. This is an increase of 4,283,791 litres.
- The turnover rose from Sh 10,015,228,672 to Sh 10,594,404,812. The increase was of Sh 579,176,140 which was due to the increase of milk.
Githunguri Dairy Farmers Cooperative Society, makers of Fresha milk products, has announced that high cost of animal feeds, lack of feeds at farmers level and high cost of milk processing has gone up by 40% hence affecting milk production.
Githunguri farmers were informed through an annual general meeting held at Githunguri stadium by their chairman George Kinyanjui that the increase was prompted by the high cost of living with profits to farmers going down.
“The major challenge that we have is that despite the high cost of living, the prices of milk in the market is going down rather than going up where our competitors have resulted to sell their milk at a lower price hence profits to the farmers going down,” Kinyanjui said.
Kinyanjui said that proliferation of cheap milk from the neighbouring counties into the country has led to Kenyan milk price value going down hence affecting farmers.
“There is alot of cheap milk getting their way into the kenyan market hence affecting our milk prices. as processors we cannot afford to sell our milk as cheap as our neighbouring countries since the cost of animal feed, cost of processing milk like electricity and taxation has gone up tremendously,” he said.
He said that farmers brought in 92,188,882 litres of milk in the society in the last year compared to 87,905,090 litres in the year 2022/2023. This is an increase of 4,283,791 litres.
The turnover rose from Sh 10,015,228,672 to Sh 10,594,404,812. The increase was of Sh 579,176,140 which was due to the increase of milk.
“Since the advent of the long rains that the country experienced there was more grass and fodder for cows which prompted an increase of milk and sometimes as a society we are not able to sell all the milk that the farmers are bringing in,” he said.
He said that the society has over 4 million litres in their stores where they are selling slowly as the society looks for new markets.
He said that the society has been able to to sell 414,000 litres of milk at a cost of Sh 43.5 million in their new market Saudi Arabia,Oman and Yemen.
“We have other markets we are exploring in the countries such as DRC Conge, and other West African countries,” he said.
He said that the society is in talks with business people who will be buying milk and inturn will be selling the milk abroad.
“We are sealing a deal with Kenyan business people who will be buying in cash milk from the society and in turn for them to sell the milk abroad,” he said.
He said that farmers were paid Sh 49.3 per litre this year as compared to Sh 49 in the previous year.
He said that in the sale of Fresha mineral water the society was able to sell 7,056 litres per day as compared to 6,471 litres per day the previous year.
The farmers got a dividend of sh 35,870,549 which is a rate of Sh 1.15 per share.
He said that the huge debt owed to them by Uchumi supermarket of Sh 44.5 million they have been able to pay Sh217,080 with no signs of recovering any other money from them as the money which was gotten from them was paid to all debtors owed by them. Nakumatt supermarket Sh 45 million with no signs of them paying up, Naks superstores limited Sh 16.9 million court case still ongoing, Wonderland foods Sh 9.4 million court case concluded and the supermarket ordered to pay debt or rather face auction, Saltes Supermarket Sh 18.6 million court case still going on, tuskys supermarket Sh 68 million court ruled that their properties be sold for society to recover debt. no hope of recovery as the supermarket had attached their properties to borrow from other lenders, Mulei supermarkets Sh 13.2 million court case still ongoing.
The society was awarded with trophies during the ushirika day where they bagged an award for being the best in value addition and innovation. In the Nairobi Agricultural Show Kenya they were awarded the best local manufacturers consumables 1st position , the best cooperative movement 2nd position and the best stand interpreting current show theme agricultural based 3rd position.
Joseph Karanja, chairman supervisory committee, said that the society has grown as more members are registering with the number rising to 28,126 members up from 27,607 members. a rise of 519 members with 11,062 active members.
The society has 88 milk collection points, 13 cooling centres, 59 stores and 1 warehouse, the society has 6 milk tankers and are collecting 252,572 litres of milk every day, up from 240,835 litres of milk last year.
“The best practices of rearing dairy cows in githunguri has gained accolades even from outside the country with President of Botswana Mokgwectsi Eric Kaebetwe Masisi bringing a delegation led by area MP Gathoni Wamuchomba visiting the society and farmers in a learning tour,” Karanja said.
According to Veronica Kimani a farmer said that the farmers are not getting value for their hard work since more money is going into buying costly animal feeds whereas the society also is not giving them more money for their produce.
“Rearing dairy cows is not a joke , it is hard work and we feel that our energy is going down the drain. animal feeds are at a high cost once we produce milk the processor cannot be able to pay us well since of taxation by government and high cost of processing milk,” She said.
The farmers called on the government to look into the quality of animal feeds as farmers are being sold sub standard feeds which have affected production of milk.
“The animal feeds are of low quality and high cost. We have complained of this but nothing is being done. My cows used to produce 30 litres of milk per day, now my cows produce 20 litres,”said James Kagiri, a farmer.
The farmers now want President William Ruto to honour his promise of delivering milk coolers so that their milk can be cooled at the collection points as he had promised last year when he visited Githunguri.
The third biggest milk processor in the country was awarded as the most consistent in production and supply of milk in Kenya 2023 by the Kenya dairy board.