KENYA – Kenyan Deputy President, Rigathi Gachagua has announced that the government is set to clear arrears owed to dairy farmers supplying milk to the New Kenya Cooperative Creameries (KCC).
The assurance came during the ‘Embu County Livestock, Dairy, and Fisheries Exhibition’ held at KALRO Grounds, Embu town, organized by the Kenya Dairy Board.
“I will talk to the Cabinet Secretary Cooperatives & MSMEs and the New KCC to clear the arrears by next week because we have an obligation to support the farmers,” Gachagua stated, conveying the government’s commitment to supporting farmers.
He emphasized the importance of this move in the context of the government’s Bottom-Up economic model, aiming to boost small-scale entrepreneurs and the rural economy.
As part of this economic model, Gachagua outlined plans for the modernization of the New KCC and the exploration of international milk markets for exporting at least one billion liters of milk annually.
“The government aims to double the current milk production from 5.2 billion liters to 10 billion liters by 2027, with strategies in place to achieve this ambitious goal.”
In addition, the Deputy President shared that the government plans to export up to 1 billion liters of milk annually, contributing to increased foreign exchange earnings from the dairy farming sector.
“We want to expand our export portfolio for the small-scale farmers to also taste the US Dollar like their tea and coffee counterparts,” he noted.
Starting March 2024, dairy farmers supplying milk to the New KCC will earn Sh50 per liter, as promised by President William Ruto.
With an investment exceeding Sh5 billion for the modernization of the New KCC, Gachagua emphasized that this is just the beginning, with further support and structural systems, including milk coolers, to reduce post-harvest losses.
Accompanied by Agriculture Cabinet Secretary Mithika Linturi and other government officials, Gachagua commended Embu County Governor Cecily Mbarire for her efforts in supporting dairy farmers.
He announced that Embu County dairy farmers would benefit from the installation of milk coolers, part of a nationwide initiative, with over 365 coolers already installed in key milk production areas.
Gachagua also revealed that the government has allocated over Ksh400 million to ensure the availability of sexed semen for quality dairy breeds, further supporting the growth and sustainability of the dairy farming sector in Kenya.
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