By Azael Masese
Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Simon Chelugui has underscored the role of New Kenya Cooperative Creameries(New KCC) in supporting Kenya’s cooperative movement.
Speaking during a recent visit and tour of the processor’s Dandora plant, Chelugui disclosed that since 2016, the government had pumped Ksh 2 billion into New KCC plants countrywide to enable the cooperative mop up excess milk during the rainy season and convert the same into powder to be released during the dry season.
“The investment is very important in ensuring stability of food security and prices,” he said, adding that the modernization programme seeks to upgrade all farmers’ cooperative cooling plants to minimize post-harvest losses.
Once achieved, this will greatly improve dairy farmers’ earning and their contribution towards cooperative societies and Saccos.
A number of cooperative societies, notably in Mount Kenya and Rift Valley, rely on dairy farming for their contribution to the societies and Saccos.
“The government is working on ensuring dairy farmers get animal feeds which has been a challenge. What dairy farmers are processing is a third of what is being utilized by the milk caucus. We can mop up the amount by modernizing our plants,” he said.
He noted that with more than 120 dairy products on offer, New KCC can command a controlling market share and play a key role across the dairy sector.
He noted with concern that Kenya has been sourcing for feeds and sunflower from Uganda and Zambia and that it is time we started contractual farming.
New KCC Board Chair Mr. Anthony Mutungi noted that coolers will enable dairy farmers to give out their surplus milk to a processor and reduce the amount sold informally.
New KCC Managing Director Mr. Nixon Sigey said they are targeting to replenish the milk powder during the short rains to stabilize the milk prices.
He regretted that the biggest challenge experienced by dairy farmers is the high cost of animal feeds.
“With the support and intervention by the Government, we are putting in place programmes that will go a long way in addressing the cost of animal feeds so that we are able to be competitive,” he said.
The leaders urged the government to activate the strategic food reserve that has been dormant for two years to mop up excessive milk from the market
Revitalisation of the New KCC has been identified as a critical pillar in enhancing the vibrant cooperative sector.
According to the Sacco Supervision Annual Report, 2021, the asset base of dairy sector deposit taking Saccos stood at a paltry KSh8.40 billion by close of 2021.
Any improvement in the sector will greatly improve dairy farmers’ earnings and their contribution to Saccos. This will eventually translate to improved asset base, deposits, loan portfolio and incomes.
