Meru Dairy Cooperative increases farm milk price, inaugurates new feed mill

KENYA – Meru dairy farmers are set for a major income boost after the Government announced that the farm-gate price of milk will now be US$0.40 (KES 52) per litre, effective August 1, 2026, alongside the commissioning of Phase I of the Meru Maziwa Millers Feed Mill at Mitunguu to significantly reduce the cost of animal feeds.

The announcement was made during the 11th Annual Meru Dairy Farmers Field Day at the ASK Gitoro Showground in Meru County, where CS Sen. Mutahi Kagwe accompanied the Deputy President, Prof Kithure Kindiki, alongside CS Hon Wycliffe A. Oparanya, EGH (Cooperatives and MSMEs) and CS Eng. Eric Mugaa (Water, Sanitation and Irrigation).

The newly commissioned feed mill will supply quality dairy feed to members of Meru Central Dairy Cooperative Union at KSh 1,800 per 50kg bag, down from the current market price of KSh 2,200–2,300, significantly lowering production costs and increasing farmers’ earnings.

The Deputy President said that higher milk prices and affordable feed are part of the Government’s broader strategy to strengthen the dairy value chain and increase farmers’ incomes.

It also aims to accelerate Kenya’s ambition of doubling annual milk production from 5.5B litres to 10B litres, positioning the country as Africa’s leading milk exporter while creating employment opportunities for young people.

The announcement comes as Meru Central Dairy Cooperative Union, Africa’s leading milk-producing cooperative, continues to register remarkable growth.

The cooperative has more than 160,000 farmers, processes up to 670,000L of milk daily, and now generates an annual milk value of approximately KSh 20B, up from KSh 5B in previous years.

The cooperative’s growth has been driven by strategic Government interventions, including a subsidy for sexed semen, whose cost was reduced from KSh 7,000 to KSh 1,400, resulting in increased uptake among members, improved dairy breeds, and higher milk production.

The cooperative also reaffirmed its readiness to adopt quality-based milk pricing, urging the Government to provide the necessary milk testing equipment so farmers can be rewarded based on the quality of milk they deliver.

To further strengthen the dairy value chain, the Deputy President also flagged off additional milk coolers to improve milk collection, reduce post-harvest losses, and expand market access for Meru dairy farmers.

To receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world, SUBSCRIBE HERE