The Meru Central Dairy Cooperative Union is banking on its upcoming multimillion animal feed factory to cut the cost of dairy meal by Sh500 per bag.
Meru Maziwa feed mill, which will be built in four phases, will start operation with a monthly capacity of 12, 000 tonnes.
Dairy farmers are expected to pay Sh2500 per bag, down from the current price of Sh3,000 once the factory starts production at the end of the year.
Meru Dairy CEO Kenneth Gitonga said the project is part of the processor’s ambition to increase the amount of raw milk supplied to the processor to 1 million litres a day.
“In the last one year, our farmers have increased daily milk production from 406,000 litres to 560,000 litres. With quality and affordable feeds, we hope to double this amount,” Mr Gitonga said.
Meru dairy is also banking on cheaper sexed semen and more milk coolers to up production.
The CEO noted that more young farmers are embracing dairy farming hence making the future promising.
Speaking after laying the foundation stone on the feed factory Thursday, President William Ruto said his administration would support the dairy sector to increase production and earnings for farmers.
“Since the Meru farmers have increased milk production by 160,000 litres in the last one year, we will continue to support them.”
“Besides the Sh100 million we have given for the feed mill, we will give more resources whenever needed,” President Ruto said.
The President further directed the ministry of cooperatives to ensure Meru Maziwa Feed Mill limited is facilitated to import yellow maize duty free once its operational.
This, he said, would lower the cost of production hence making the feeds more affordable for farmers.
“We have received Sh35 billion from india to support access to affordable milk packaging materials. We are working with an Indian company to also supply Milk cans at more affordable prices,” the president said.
To enhance access to cheap loans for cooperatives and farmers, he said the government had secured Sh15 billion from Africa Exim bank through the Agricultural Finance Corporation (AFC).
He said the government has allocated Sh2 billion for the dairy sub sector besides lowering the cost of sexed semen.
“I direct the Agriculture CS to ensure the price of sexed semen is reduced from Sh7,000 to Sh2,000 to help farmers upgrade their animals. This is part of out plan to increase milk production in the country,” Ruto said
According to the head of state, Kenya has this year exported milk and milk products worth Sh7.2 billion.
“We have access to several African markets as well as the UAE. However, we are facing challenges due to diseases.”
“Due to this, the national government will be leading a countrywide vaccination drive targeting 22 million heads of cattle. This will enable us eradicate diseases that limit our access to the export market,” he said.
President Ruto also directed the New KCC to emulate Meru dairy and pay Sh53 per litre to its farmers.
