Dairy farmers in Kiambu County are decrying rising production costs driven by the high price of animal feed and dwindling market returns.
The farmers, drawn from the Githunguri Dairy Farmers Co-operative Society, say the surge in feed costs has eaten deeply into their earnings, threatening the sustainability of one of Kenya’s largest milk processing co-operatives.
Speaking during the co-operative’s annual general meeting held at Githunguri Stadium, Chairperson John Ndichu said the scarcity of raw materials used to manufacture animal feed has forced processors to source from Tanzania and Uganda, driving costs up.
“Last year, Tanzania banned the export of raw materials to Kenya, while Uganda imposed higher taxes. These developments have drastically increased our cost of production,” said Ndichu.
He added that the fluctuating value of the shilling against the US dollar has worsened the situation, while milk prices in the local market have remained static putting farmers in a tight financial spot.
Farmers called on the national government to step in and ease taxes on animal feed and farm inputs. “We have been suffering for too long. The government should step in and reduce taxes so that we can produce more and sustain our livelihoods,” said John Warui, one of the farmers.
Another farmer, Caroline Wangari, raised concerns over the proliferation of substandard feeds, blaming the high costs for pushing desperate farmers to cheaper, low-quality options that reduce milk production and compromise livestock health.
The Githunguri Dairy Co-operative known for its Fresha milk brand recorded a decline in milk sales for the 2024/2025 financial year, dropping to 91 million kilograms from 92 million the previous year. Consequently, its turnover fell by Ksh2.7 million, down to Ksh10.59 billion.
However, Ndichu remained optimistic, revealing that production had increased by 75,000 litres monthly over the last three months. He added that the co-operative was facing marketing challenges, especially in the international market, citing disruptions in Saudi Arabia, Oman, and Yemen due to regional instability.
“We are now pursuing new markets in Congo and other African countries,” he said, adding that the society currently has 3.95 million kilos of milk in storage as it seeks new outlets.
Farmers are currently paid Ksh49.47 per kilogram of milk, a slight improvement from Ksh49.30 last year.
The co-operative has partnered with international agencies, including the United Nations Industrial Development Organization (UNIDO) and the Swedish International Development Cooperation Agency (SIDA), to strengthen its operations and enhance agribusiness capacity among members.
The partnership will fund the construction of a farmer learning hall, hire extension officers, and provide electric motorcycles, laptops, and dairy cows to boost efficiency and sustainability.
“Our mission remains to empower every farmer to become self-sustaining through agribusiness training and innovation,” said Ndichu.
To cut operational costs, the co-operative has shifted to firewood boilers and upgraded its milk packaging machinery to improve efficiency.
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