Milk production in Mukurweini Diary shoots up, members told

Annual milk production for Mukurwe-ini Wakulima Dairy increased by 21 per cent from 11.7 million kilograms in 2017 to 14.8 million kilos in 2018.

Chairman Muhika Mutahi attributed the increase to a rise in production per farmer and addition of new farmers.

The dairy has increased its catchment areas to other subcounties that include  Mathira, Othaya and Tetu and some parts of Murang’ a and Kirinyaga counties.

Currently, the dairy is collecting 50,000 liters daily and its plan is to collect and process 80,000 liters as per its five years strategic plan.

Muhika spoke during the dairy’s annual general meeting held at Kiriti Stadium in Mukurwe-ini town in Nyeri County on Friday when he represented the report for the year ended December 2018.

“Total amount paid out to farmers increased from Sh412 million to 514 million,” he said.

In general, the sales for the dairy grew by 22.8 percent from Sh 955 million in 2017 to 1.2 billion in 2018.

The net profit, however, remained almost the same at Sh30 million compared 30.8 million in 2017.

The chairman said the operating cost increased by 24.5 percent from Sh 956 million in 2017 to 1.2 billion in 2018.

“This was mainly contributed to by the cost associated with capital investments. The milk rate average at Sh 35 in the financial year,” he said.

The company assets grew from Sh387 million in 2017 to 612 million in 2018.

The growth was primarily funded by internally generated funds and an extended term loan financing of Sh 120 million from CFC bank.

“We are therefore grateful to report the continued growth of our organization in line with our vision of improving the livelihood of our members and reduce poverty in our areas of operation by helping farmers to produce more and quality milk,” he said.

“The extension services team has been very committed in farmers training in good animal husbandry, fodder preservation, feeding and disease control.”

All this is to help farmers produce more, sell more milk for more income in a cost effective way, he said.

The launch of UHT (ultra-heat treated) milk processing firm in 2018, he added, has enabled the company to  process products that last for six months enabling the company to venture into far and wide market.

This move made the company able to store milk during glut period and sustained milk rates with a slight decline.

This enables it take its products into the distant and also to mitigate the challenge of oversupply of milk during the glut period.

The company recently introduced new products in the market namely Fino UHT milk and bottled water under the brand names Royal Fresh Long life milk Fino and Royal Fresh drinking water.

“Also in process is cream which will add into our products portfolio and thus increased revenue,” he said.

The company is putting more emphasis in market development in both existing and new markets, he said.

This will not only increase its market share but also increase revenue that will translate to better milk rates and dividends, he said.

“We have opened the market in Coast region, Rift Valley, Lower and Upper eastern regions and we are working on venturing into other areas.

The dairy started in 1990 in among those performing well in the country.

Agriculture CS Mwangi Kiunjuri was the chief guest during the AGM.