The once insignificant dairy co-operative movement, which has for decades been viewed as a sanctuary for struggling smallholder farmers, has turned out to be the vehicle that has driven growth of the sub-sector in Molo Sub-County.
Many cooperatives in the region that has an estimated population of 250,000 inhabitants, have grown to become industry giants, who have extended their businesses beyond the primary role of marketing milk for small-holder farmers, and ventured into provision of financial services.
The significance of the cooperative movement in the Sub-County was highlighted by the Cooperatives and Micro and Small Enterprise CS Simon Chelugui who indicated that farmers in the region have achieved improved per capita income in the country through cooperatives by milk sales, which they produce in large quantities as a result of proper dairy animal feeds such as silage, dairy meal and others.
Chelugui indicated that cooperatives in Molo Sub-County were bolstering the dairy Sub-Sector by encouraging farmers to invest more in animal feeds to boost milk production.
According to estimates, at least five per cent of the national Gross Domestic Product (GDP) is generated from milk.
“Co-operatives form a key cog that turns the wheels of the dairy industry in Kenya. Through bulking, co-operatives in Molo Sub-County have been able to reduce the cost of milk marketing and enabled farmers to realize higher returns through provision of a reliable and remunerative outlet for milk,” stated Chelugui.
The Cabinet Secretary, who spoke at Molo Stadium when he officially closed a week-long capacity training for over 500 dairy farmers, indicated that there were a number of avenues by the State to assist dairy farmers, but lack of proper structures delayed such processes.
“The government best assists farmers in organised groups. Most farmers in the dairy sector are in production as individuals, which makes it hard for them to tap maximum market potential, and access to quality extension services and affordable credit facilities,” he said.
Towards this, Chelugui affirmed that farmers needed to form cooperatives to help them better tap market opportunities and attract government investments.
The CS indicated that cooperatives offer small agricultural producers’ opportunities and a wide range of services, including improved access to markets, natural resources, information, communications, technologies, credit, training and warehouses.
“State initiatives through the Kenya Industrial Estates, Youth Enterprise Development Fund and Uwezo Fund among others support cooperatives formed by women and youth groups with start-ups and micro businesses to broaden their opportunities and boost their competitiveness that will eventually generate jobs, increase incomes and productivity,” stated Chelugui.
He asked residents undertaking all the value chains including maize, bananas, sweet potatoes, dairy, poultry and horticulture to come up with cooperatives.
While indicating that the state was formulating new policies and governance structures aimed at increasing the country’s milk production from 4.6 billion litres to 10 billion litres per annum, Chelugui observed that well managed cooperatives had the capacity to address weak market frameworks, shortage of agricultural extension services, and unavailability of certified seeds and expansion of storage facilities to mitigate post-harvest losses.
Working in groups among farmers, he indicated, will increase their bargaining power and order inputs in bulk therefore, lowering their expenditures besides increasing their chances of accessing markets at better prices.
He urged the farmers to strive for increased production, stressing the potential of the area for further growth and success.
The CS reiterated the need for farmers to utilize the state-of-the-art storage facilities in the national creameries’ cooperative, noting that surplus milk could be processed into powdered milk for export, creating an additional avenue for income generation.
He reassured the farmers that by adopting the cooperative model and working together, they could achieve higher milk production levels.
“Let us talk to our farmers to produce more milk; the excess will be turned into powdered milk for exportation,” he added.
According to Chelugui, county governments need to develop robust extension services, adding that feeding is the key in increased milk production, an issue that should be addressed by training farmers on how to conserve fodder for use during the dry spell.
Liberalization of milk marketing and withdrawal of many governments’ technical services as part of industry reforms two decades ago, forced dairy co-operative societies to assume a greater role in these areas.
Today, a number of groups have also set up agro-vet services, where members access inputs on credit, recoverable from proceeds of milk deliveries. Dairy groups are also playing a role in empowerment through training.
He disclosed that his Ministry was partnering with research agencies and learning institutions in training farmers through cooperative movements on how to get quality feed and the right ration to boost their production.
The training program, he added, is exposing farmers to local and international exchange programmes to widen their knowledge scope.
“We are encouraging devolved units to revamp their extension services programmes. We are carrying out dairy training sessions in collaboration with cooperatives as a strategy of empowering members and exposing them to best practices in dairy cow husbandry,” said Chelugui.
He stated that more farmers were improving their family income, following sustained efforts by various stakeholders to increase farmers’ capacity in animal husbandry through dairy training courses.
The CS noted that dairy co-operatives can also play an integral role in the elimination of post-harvest losses along the milk value chain, occasioned by poor handling during milking, transportation and collection.
In the past, there have been concerns over weak management structures of a number of dairy co-operatives which, leads to poor business planning, unrealistic and conflicting goals and targets.
The farmers were trained on feed preparation and conservation as a strategy to ensure optimum milk production across all seasons.
The training model saw farmers from the 11 sub-counties of Nakuru county, access information on ways of increasing production through investment in high quality animal feed.
Chelugui said year-round availability of quality feed was critical in sustaining optimum milk production on the farms and enhancing the groups’ income.
The Kenya Dairy Board (KDB) Managing Director, Margaret Kibogy stated that the organization was banking on a cooperative model to eliminate brokers and milk transporters in the dairy sector, who profiteer from dairy farmers’ sweat.
The plan will see farmers invest in dairy infrastructure and directly engage processors.
Kibogy said the elimination of costly transporters will enable farmers to get more share of the producer price paid by processors.
“A co-operative model will enable Kenya to modernize its dairy sector, where farmers will be compelled to sell milk via dairy societies that also become channels for quality monitoring, credit access as well as dairy husbandry training,” said Kibogy.
Traditionally, transporters collect raw milk from farmers and market the same to various outlets only for farmers to be paid at a set price minus Sh3 a litre as transport fee.
She pointed out that the Board, as the regulator of the dairy industry in the country, is responsible for ensuring sustainable milk production and promoting the sector.
The MD indicated that Molo Sub-County currently produces 17 million liters of milk annually, demonstrating tremendous potential for further growth, particularly in meeting the demand for the county and the country.
She added that the Sub-County had unexploited potential of yielding 40 million litres of milk annually.
Kibogy expressed belief that other counties in the region should follow the example set by Governor Susan Kihika’s administration, which supports farmers to produce more milk in order to create a vibrant dairy sector.
By so doing, not only would the region benefit, but the entire country’s economy would thrive from this sector’s contributions,” said Kibogy.
She stressed the significance of the dairy sector as a key component of the agricultural industry and highlighted her commitment as a policymaker to implement various interventions that protect farmers involved in milk production.
These interventions include infrastructure development to support the dairy farmers’ proper housing of dairy animals, transportation of milk, proper collection centers, and adoption of new technologies to monitor animal health.
She encouraged farmers to seize the opportunity and enhance their milk production, as a large open market exists.
Additionally, Kibogy advised them to focus on producing silage and fodder crops to sustain milk production during dry seasons.
“By adopting these measures, farmers can ensure the long-term sustainability of milk production,” she added.
Nakuru County Deputy Governor, David Kones said that the county administration will continue to channel funds to cooperatives to empower residents.
“The reason why I love cooperative societies and my administration is committed to continuous support is because it is a move which empowers members directly compared to these other ventures,” said Kones.
He also challenged the cooperative movements within the county to play a vital role in conserving the environment by ensuring that trees are planted at the grassroots.
“In your cooperative movements and at the individual level, on the issue of environment, we appeal to you to ensure that you contribute towards it in rural set ups so that the environment is conserved and many trees as possible should be planted,” said the Deputy County governor.
He warned the Cooperatives against misusing funds given to them by the developed unit.
“Please ensure that you manage the cooperatives in a transparent way, officials must continue to be accountable and members have to be disciplined and responsible by servicing loans we have given to you,” he said.
By Emily Kadzo
