Farmers deliver milk to Brookside Sabatia Co-operative in Eldama Ravine,
Baringo County. Large processors such as Brookside, New KCC and Daima
have empowered co-operatives through timely payment for milk delivered.
FILE PHOTO | NMG
The once insignificant dairy co-operative movement, which was
seen as a refuge for struggling smallholder farmers, has turned out to
be the vehicle that has driven growth of the sub-sector.
According to estimates, at least five per cent of the national Gross Domestic Product (GDP) was generated from milk.
The
Ministry of Agriculture’s National Dairy Development Policy says
co-operatives form a key cog that turns the wheels of the dairy industry
in Kenya.
Its strategy paper notes that through
bulking, co-operatives have been able to reduce the cost of milk
marketing and enabled farmers to realise higher returns through
provision of a reliable and remunerative outlet for milk.
Brookside
Dairy, which procures nearly 1.5 million litres of raw milk from
farmers every day, largely owes its success to these producers. It has
partnered with over 300 dairy groups where it sources its raw material.
“As
a result of our partnership with dairy groups, many of them have grown
to become industry giants who have extended their business beyond the
primary role of marketing milk for small-holder farmers and ventured
into provision of financial services,” says Mr John Gethi, Brookside
Dairy’s director of milk procurement.
The New Kenya
Co-operative Creameries (KCC) managing director Nixon Sigey said they
had developed robust extension services covering the firm’s eight
factories in Kenya.
“Feeding is the key in increased milk production. This is one
challenge New KCC is addressing by training farmers on how to conserve
fodder for use during the dry spell,” Mr Sigey said.
Liberalisation
of milk marketing and withdrawal of many government 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.
According to Mr Sigey, New KCC is training farmers on how to get quality feed and the right ration to boost their production.
Mr Sigey said his firm is exposing farmers to local and international exchange programmes to widen their knowledge scope.
Brookside,
on its part, has revamped its extension services programmes. “This year
alone, we targeted nearly all our partner dairy co-operatives in our
extension service programme. We carried out dairy training sessions in
collaboration with these groups as a strategy of empowering members and
exposing them to best practices in dairy cow husbandry,” said Mr Gethi.
Large
processors such as Brookside, New KCC and Daima have in addition
empowered co-operatives through timely payment for milk supplied by
groups.
Mr Gethi said Brookside would continue to
provide the groups with an assured market for members’ milk as part of a
growth strategy between processors and dairy co-operatives.
“We
have made a commitment to all our milk suppliers, including the large
ones like co-operatives, that we shall continue to make guaranteed
payment for every litre of milk sold to us irrespective of the
prevailing or fluctuating market prices,” added Mr Gethi.
By
having a reliable source of income through assured payment for milk
delivered, dairy co-operatives have had a relatively healthier cash flow
status compared with other co-operatives, such as those in crop sector.
Mr
Gethi noted that more farmers were improving their family income,
following sustained efforts by processors and dairy groups to increase
farmers’ capacity in animal husbandry through dairy training courses.
“Brookside
will upscale its partnership with all dairy groups across the country
to ensure that dairy remains a key driver to the economies in rural
areas,” Mr Gethi said.
The official noted that dairy
co-operatives can also play an integral role in the elimination of
post-harvest losses along the milk value chain.
“Our
partner groups have a major role to play in the reduction and eventual
elimination of losses on raw milk occasioned by poor handling during
milking, transportation and collection,” Mr Gethi said.
This, he said, can be achieved through training on clean milk production.
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.
To
mitigate the effects of dry weather on milk production, Brookside Dairy
has lined up a series of trainings for group members on feed preparation
and conservation as a strategy to ensure optimum milk production across
all seasons.
The new training model will see farmers
from more than 25 counties access information on ways of increasing
production through investment in high quality animal feed.
Mr
Gethi said year-round availability of quality feeds was critical in
sustaining optimum milk production on the farms and enhance the groups’
income.
“We have scheduled a number of dairy training
courses for farmers across the country in the new year as part of
efforts to sustain production of raw milk. We will be working with a
number of strategic partners to ensure that as many farmers as possible
access knowledge on ways of growing milk production,” he said.
Dairy farming is largely a volume-based enterprise.
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