Githunguri Dairy reports US$88.4M turnover in latest FY

KENYA – Githunguri Dairy Farmers Co-operative Society Limited has increased its turnover by US$7.75 million (KES1 billion) despite prolonged drought, rising production costs and livestock diseases affecting the dairy sector.

The co-operative, which manufactures Fresha milk products, recorded turnover of about US$88.4 million (KES11.4 billion) in the latest financial year, up from US$80.6 million (KES10.4 billion) previously, following increased milk deliveries from farmers.

It received 97 million litres of milk during the period, compared with 91 million litres in the previous financial year, reflecting improved performance despite the challenges facing dairy farmers.

Chairperson John Ndichu attributed the growth to farmers’ commitment to sustaining production and the society’s continued investment in training producers and exploring new markets.

“This growth has demonstrated the importance of supporting farmers with the knowledge and commercial opportunities required to sustain production,” he said during the 2026 Annual General Meeting held at Kanjai Primary School in Githunguri, Kiambu County.

However, he said high animal feed prices, recurring livestock diseases, and prolonged dry conditions continued to threaten milk production and farmers’ earnings, calling on national and county governments to intervene and safeguard the sector.

He identified the high cost of animal feeds as one of the biggest obstacles to profitable dairy farming, noting that taxation on raw materials sourced from neighbouring countries had further increased production expenses.

Tanzania and Uganda supply raw materials used in animal feed manufacturing, but additional taxes on these inputs have contributed to rising feed costs.

Concurrently, he commended the Kiambu county government for collaborating with the society in livestock vaccination programmes and disease control initiatives, urging both levels of government to sustain their efforts to contain outbreaks.

To strengthen its operations, the society plans to source additional milk from other co-operatives and milk aggregators outside its traditional collection areas.

The arrangement will allow other co-operatives to supply milk for processing and value addition without necessarily requiring their farmers to become members of Githunguri Dairy Farmers Co-operative Society.

The factory currently operates at about 60% of its installed capacity, with management targeting 80-90% utilisation as it expands milk sourcing and strengthens its market position.

The increased volumes are expected to improve factory efficiency, support business expansion and create additional opportunities for value addition.

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