The fight for control of the national raw milk market has intensified after a leading processor announced it would enlist additional raw milk suppliers.
The move by Brookside Dairy to recruit more farmers will heighten competition in the country’s dairy sector, which accounts for over 4 per cent of the national Gross Domestic Product.
Two weeks ago, New KCC said it would clear Sh500 million owed to farmers for milk deliveries made 20 years ago as it also seeks to bring more farmers to its stable. Sameer Agriculture & Livestock Ltd, the makers of the Daima brand of milk, have also announced that they would open a Sh3 billion factory at Salgaa on the outskirts of Nakuru town, which would begin processing by June next year.
Yesterday, Brookside’s director of milk procurement John Gethi said the Ruiru-based firm would also renew raw milk supply contracts for its 160,000 existing farmers across the country. “We are encouraged by the high number of farmers who wish to supply their raw milk to us. We have responded to this need by expanding the processing capacity of our factory in Ruiru, a move that assures farmers of a ready market for their milk,” Gethi said in Nyandarua County yesterday.
“We will continue to provide guaranteed payments for every litre of milk supplied to us. This in turn assures families of regular income from the dairy enterprise,” Gethi said.
He said farmers in Nyandarua County, a key raw milk shed in the country, earned over Sh2 billion from raw milk sales to the processor last year. He commended dairy co-operatives in Nyandarua for bringing farmers together to market their milk as groups, thereby enabling them to benefit from economies of scale. “Dairy is a volume-based enterprise, and for enhanced incomes, farmers must increase production through adoption of best dairy practices on the farm,” Gethi said.
He said the firm had also enhanced the operational capacity of its raw milk bulking stations at Eldoret, Kitale, Nakuru and Kiganjo in Nyeri, besides expanding cooling facilities at 55 centres across the country. “What we have witnessed in the recent past is renewed interest in the dairy enterprise, mainly driven by the sector’s ability to provide regular income for families,” Mr Gethi said.
Brookside, which commands a 44 per cent lead in the country’s raw milk market, has a daily peak intake of more than 1.5 million litre.
