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Murang'a county to transfer multi-million milk plant to farmers

Farmers to buy about 90 per cent of the creameries shares.

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by The Star

Coast12 September 2021 - 09:02
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In Summary


  • The plant established in 2018 was fully funded by the county government with the objective of boosting farmers, returns.
  • It has helped boost milk prices from as low as Sh18 per litre to Sh40.
Agro-marketing CEC Paul Macharia with farmers at Murng'a County Creameries plant in Maragua on Friday.

Murang’a county government is set to transfer the multi-million milk processing plant to farmers, before the end of next year.

Murang’a County Creameries milk processing plant was established in 2018. It was fully funded by the county government with the objective of boosting farmers' returns.

Previously, farmers sold their milk to brokers who paid as low as Sh18 per litre before the county government helped farmers get into a contractual agreement with Brookside company.

The company agreed to pay a minimum of Sh35 per litre, in a move that was hailed by farmers.

The dairy project was Governor Mwangi wa Iria’s flagship project and his administration invested millions into boosting milk production.

In his first term, the governor issued free high quality nappier grass to farmers before starting the One Home One Cow programme that saw low income families issued with subsidised high quality dairy cows.

The farmers had to be part of the 35 dairy co-operative societies and were required to pay for the cows once they started selling milk.

The county has also put in place 50 coolers with a 5,000 storage capacity run by the co-operatives.

But with the governor’s exit next year after the lapse of his second term, the county government plans to handover the plant to the farmers by selling them shares and retaining about 10 per cent.

The county government is in the process of writing a bill that will control the sector and which is expected to be tabled in the county assembly by December this year.

On Friday, officials of co-operative societies that form Murang’a County Creameries Union visited the plant in Maragua. They expressed their enthusiasm saying they have the capability to competitively run it.

Makomboki dairy co-operative society chairperson Joseph Gaitung’u said most farmers have been in numerous co-operative societies for decades and have the experience to steer the plant into the future.

“I have personally been in the co-operative movement for over 30 years. As farmers, we have the ability to manage the union and make it successful,” he said.

Gaitung’u praised the county government for uplifting dairy farmers by boosting their returns.

Margaret Wangari from Mithini dairy co-operative society said transferring the plant to them will give them direct power to make decisions that impact the sector.

Agro-marketing executive Paul Macharia said the establishment of the plant has boosted milk production to 120,000 litres every day.

“The production is so high that the county is procuring additional coolers to accommodate the extra milk,” he said, noting that the county is also expanding the plant to capacitate it to process over 250,000 litres daily.

He said the transfer process will be smooth since farmers are already consolidated into co-operatives.

He however noted that only five co-operative societies have been going against the union and selling milk to brokers.

Kangari, New Nginda, Kiarutara, Kigoro and Kahuro co-operatives ceased supplying milk to MCC last month, against the bylaws of the union.

The brokers, Macharia said, have been offering competitive prices to lure farmers to sell the commodity to them due to scarcity.

“But when the rain season comes and there is a milk glut, the brokers will frustrate them and buy their milk at a throw away price,” he said.

The county government recently announced that farmers will start receiving payments of Sh40 per litre as a way of cushioning them from the effects of Covid-19.

The executive expressed confidence that farmers will competitively manage the plant saying they have been able to manage their dairy co-operative societies under the patronship of the county government.

“The plant will be able to sustain itself without any subsidies from the county government,” he said.

The county government is also in the process of establishing a Sh150 million animal feeds plant to complement the dairy processing plant.

It will sell animal feeds at a subsidised price as it will source its raw materials from local farmers.

Many farmers source their feeds from neighbouring counties and are forced to contend with high transportation costs.

(Edited by Bilha Makokha)

Murang'a County Creameries plant in Maragua.
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