Co-operatives and MSMEs Development Cabinet Secretary, Wycliffe Oparanya, has urged dairy cooperatives in the country to embrace partnerships in order to protect milk farmers from unhealthy competition.
Addressing a section of dairy cooperative leaders and farmers at Nyambene New KCC factory in Meru County, the CS said dairy farmers are interested in market access and sound prices for their milk produce.
He asked the New KCC to partner with private dairy co-operatives in the region to increase supply and production at the milk plant.
“All the cooperatives owned by farmers and those privately owned are doing well in Meru. When it comes to the State corporation, the milk supply for processing in the facility is too low,” Oparanya argued.
Mr. Oparanya decried the underutilised Nyambene New KCC state-of-the-art facility that was constructed with a budget of more than Sh500 million.
He, however, challenged farmers to trust the reform process in the corporation that has already delivered results, with farmers getting paid promptly on the first day of the month.
“I have given the New KCC management only 90 days to turn around the loss-making entity that will see the restructuring of the human capital, increased producer price per litre to Sh55, lowering the payment date to two weeks, and above all, prioritising the farmer’s welfare,” Mr. Oparanya outlined.
He noted that dairy co-operatives throughout the region were ready to partner with the corporation to ensure farmers could access the market easily.
In a separate meeting with the Meru Central Dairy Co-operative Union Ltd. board of management, which is a home for Mount Kenya Milk, during his tour of the facility, the CS highlighted the significant potential within the dairy sector, lauding the farmers’ owned cooperative for its commitment and high performance, which processes over 450,000 litres of milk and supports over 1 million livelihoods along the value chain.
Cooperatives Principal Secretary, Patrick Kilemi, said the dairy value chain is central to the Bottom-up economic agenda (BETA).
“Through Cooperatives, we are determined as a government to ensure farmers realise higher returns for their milk production,” he noted.
He emphasized the need for co-operatives to embrace good governance to promote transparency, accountability, and participation, which are essential for building trust and fostering a sense of community among members.
Mount Kenya Milk CEO Kenneth Gitonga welcomed the move by the Government to support farmers at the grassroots to access the market and better prices for their milk.
He noted that the co-operatives would always collaborate to ensure farmers access the nearest market outlets for their produce to reduce costs of transport to the market and maximise profits.
“We are very much ready to support the New KCC to have farmers here in Nyambene supply their milk to the factory. We are not competing as cooperatives since the market for dairy products is huge within Meru and across other regions,” Gitonga said.
By Dickson Mwiti
