The commissioning of the Extended Shelf Life (ESL) processing plant by Limuru Dairy Farmers Cooperative has led to the society posting good financial performance this year reflecting significant growth and solid management.
According to George Njuguna, chairman of the board of the society speaking during the 60th annual general meeting held at the milk processing plant in Limuru said that the ESL has a capacity of 5,000 litres per hour and despite the challenges the society faced, this milestone is a testimony to the resilience and dedication of members and the entire team.
“This project involved the procurement and installation of: Two Aseptic packing machines, a UHT sterilizer and homogenizer, a two-ton biomass boiler and a Freon chiller, UPS for the sterilizer, generator, air compressors, water treatment unit, motors, electrical controllers, and stabilizers,” Njuguna said. The ESL is a successful project funded by the World Bank through NARIGP and Limuru Dairy.
“We have hosted local and international guests for the purposes of bench-marking. We also undertook significant factory renovations, which included the construction of a boiler house, a water treatment unit, and various storage facilities. These investments have not only improved our production capacity but also ensured that we are positioned to meet growing market demands for high-quality dairy products,” he added.
The chairman reported to the farmers that the total milk collection increased significantly, reaching 10,739,028 Kgs in 2024, up from 9,448,121 Kgs in 2023. This represents an increase of 13.7%.
He said that the milk turnover has similarly grown, reaching Sh. 600,959,424, compared to Sh. 535,310,075 the previous year. The society has maintained the average payment to members at Sh. 46.03 per kilogram of milk.
“This consistency shows our commitment to supporting the financial well-being of our members despite fluctuating market conditions,” he said. A total of Sh. 494,362,456 was paid out to members, representing 82% of the total milk sales.
The total turnover was Sh. 1,100,353,032 an increase from Sh. 988,370,370 in 2023. Retained earnings were Sh. 134,927,814, up from Sh. 131,606,747 in 2023.
Farmers were informed that the society has seen a remarkable increase in assets, now valued at Sh. 270,863,031 compared to Sh. 118,216,575 in 2023. “This is largely due to our investments in new processing equipment and factory upgrades,” he said.
There has been significant growth in yoghurt sales, which have increased from 150 liters per day in 2023 to 420 liters per day in 2024. “This success is a direct result of our investment in new equipment and our expanded marketing efforts. However we are yet to get full market penetration, however marketing strategies are being developed in collaboration with CUK and Agriterra,” he said.
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The Society membership continues to grow steadily as of 30th June 2024, the Society has 2,687 active members, up from 2,451 in 2023. “We also have a significant number of dormant members 8,932, and efforts are ongoing to re-engage them in active participation” the farmers were informed.
The chairman said due to prudent management of resources and extra efforts invested by the board the society will be able to pay a bonus at the rate of Sh 1.00 per kilo of milk delivered in the period starting from 1st July 2023 to 30th June 2024.
The farmers were told that the board has actively sought partnerships with NGOs and organizations that can provide support to the Society with this year strengthening their collaboration with Agriterra supporting board capacity building and youth development.
During the Ushirika day celebration the society was awarded a trophy for the highest percentage payment rate.
The chairman however cited challenges which have faced the society which included gender representation as they still need to improve female representation on the board to meet the one-third gender rule. “I encourage more women to participate in leadership roles,’ he said.
He said that the society has seen limited youth participation and are making efforts to encourage young farmers to invest in dairy farming by providing them with necessary training and support. Due to erratic climatic conditions, farmers are taught about fodder preservation as a mitigation measure.
He also mentioned that due to the high cost of electricity the society has made arrangements to install solar energy.
By Felix Wanderi
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