KENYA – Kenyan dairy Farmers affiliated with the Githunguri Dairy Farmers Cooperative Society in Kiambu County have been grappling with surplus milk, amounting to more than four million litres, due to a slump in sales blamed largely on an influx of cheap milk imports. 

The farmers, who contribute to the production of the well-known Fresha milk brand, have expressed frustration over plummeting milk prices, claiming that imported dairy products are hurting their income.

At the cooperative’s annual general meeting held at Githunguri Stadium, George Kinyanjui, the chairperson of the Githunguri Dairy Farmers Cooperative Society, highlighted the challenges facing local dairy farmers. 

“The influx of cheap imports has driven milk prices down, significantly cutting into our earnings,” Kinyanjui remarked. 

He explained that local processors face rising costs in areas such as animal feed, electricity, and taxes, which makes it impossible to match the lower prices offered by milk imports from neighboring countries.

This year, the cooperative purchased 92,188,882 litres of milk from its members, an increase from last year’s 87,905,090 litres. 

Despite the rise in milk production and a turnover growth from Ksh10 billion to Ksh10.5 billion aided by favorable rainfall that boosted fodder supply the cooperative has struggled to sell the additional milk. This surplus has led to the accumulation of over four million litres in storage.

In response to the surplus, the cooperative has actively sought external markets to alleviate the strain. So far, it has exported 414,000 litres of milk to Saudi Arabia, Oman, and Yemen, generating Ksh43.5 million in revenue. 

Kinyanjui noted that the cooperative is exploring potential export destinations in the Democratic Republic of Congo and some West African countries.

 “This year, farmers were paid Ksh49.3 per litre, and we are committed to improving this rate moving forward,” he assured members. He added that the cooperative is in talks with additional exporters to expand its reach in foreign markets.

Apart from milk, the cooperative has diversified into selling bottled water under the Fresha brand. 

Daily sales of bottled water increased to 7,056 litres, up from last year’s 6,471 litres. This diversification is part of the cooperative’s broader strategy to enhance revenue streams amid the ongoing milk surplus challenges.

During the meeting, Kinyanjui announced dividends totaling Ksh35,870,549, equivalent to Ksh1.15 per share, as part of the cooperative’s commitment to sharing profits with its shareholders. 

However, he disclosed that the cooperative is owed a significant amount of Ksh215 million by various retail outlets, impacting cash flow and limiting their ability to provide immediate payouts to farmers.

The cooperative’s Supervisory Committee Chairperson, Joseph Karanja, emphasized the value of good animal husbandry practices, which have attracted interest from regional and international delegations for benchmarking visits. 

The cooperative’s membership has also grown from 27,607 to 28,126, with the organization managing 88 milk collection points, 13 cooling centers, 59 stores, and a warehouse, processing an average of 252,572 litres of milk daily.

Local farmers voiced concerns about the challenges they face in maintaining productivity amid rising costs. Veronica Kimani, one of the farmers, lamented the high costs of feeds and taxes, saying, “We are not getting value for our hard work as most of our earnings go toward buying feeds.” 

Her sentiments were echoed by James Kagiri, who called on the government to regulate animal feed quality, explaining that substandard feeds have contributed to a drop in his cows’ milk production from 30 litres to 20 litres daily.

Farmers also appealed to President William Ruto to fulfill his commitment to provide milk coolers, a pledge he made during a visit last year. 

The coolers, they believe, would help preserve milk at the collection points, reducing spoilage and improving the cooperative’s processing efficiency.

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