Meru Central Dairy Cooperative Union records 28-fold growth expansion

KENYA – Meru Central Dairy Cooperative Union has recorded a 28-fold expansion in 13 years, highlighting cooperatives’ growing role in Kenya’s dairy value chain.

The milestone was highlighted during a visit by CIC Insurance Group Managing Director and CEO Patrick Nyaga and his delegation to the union’s new Maziwa Millers Ltd facility in Mitunguu.

According to the union, the growth stems from the efforts of its farmers, member cooperative societies, staff and leadership, alongside continued investment in the dairy value chain.

The expansion has also demonstrated the potential of organised farmers to improve their livelihoods through collective investment, cooperation and value addition.

A major component of the union’s growth strategy has been the establishment of Maziwa Millers Ltd, which is expected to expand processing capacity and create additional opportunities within the dairy industry.

The facility has already begun producing dairy, pig, and poultry feed. 

According to the cooperative, dairy meal will retail at KSh2,800 per 50 kg bag, compared with the current market price of about KSh3,200, helping farmers reduce one of their largest production costs.

The investment forms part of efforts to increase value addition and enable farmers to benefit more from their milk production.

Additionally, the milk intake has also more than doubled over the same period, rising from 287,000 litres to 670,000 litres, while the number of affiliated dairy societies has grown from 139 to 168.

Gitonga said the progress achieved so far reflects the confidence that farmers and member societies have placed in the union.

Meanwhile, the cooperative is now seeking to build on these gains by focusing on innovation, sustainable expansion and increased value addition.

It also aims to improve returns to farmers while creating more opportunities across the dairy value chain.

Ultimately, the 28-fold expansion provides a foundation for the union’s next phase of development as it seeks to strengthen its position in the country’s dairy sector.

The company plans to further expand the facility in subsequent phases by adding a second production line, grain silos and drying facilities.

These investments are expected to improve raw material storage capacity and enable the mill to meet rising demand from dairy farmers in Meru, Embu and Tharaka Nithi counties.

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