Githunguri Dairy takes turf wars to EAC

The dairy firm said the processing plant, with a capacity of 7,200 litres per hour will boost its export supply.

“We have started producing long-life milk and we have received inquiries from Garissa, Southern Sudan, Rwanda and Mauritius. With the UHT we can get a higher turnover and increase producer prices,” the dairy’s chairman Charles Mukora said.

The firm intends to continue using low pricing to gain market share from UHT processors like Brookside, New KCC, Kabianga Processors, Sameer Agriculture and Meru Farmers.

The dairy firm that started as a small cooperative society in 1961 has grown to become the third largest milk processor in Kenya with assets valued at Sh3 billion.

Its share of the milk market is 30 per cent currently in Nairobi and 11 per cent in rural areas.

Joseph Kilonzo, the factory’s general manager said the society had 31 members who delivered milk to a collection centre for sale to New KCC, then Kenya Co-operative Creameries.

“In 1965, we were was selling 4,275 litres of milk daily to KCC,” he said.

Currently, it has a total of 19,000 members with 64 collection centres across Kiambu district.

“It was just a small society before members decided to contribute Sh1 for every kilogramme of milk sold in order to buy a milk processor to add value to their milk,” Mr Kilonzo said.

In July 2004, the society bought its own milk processing plant under the chairmanship of Njoroge Baiya, now the area member of parliament, and has been able to access a wider market through value addition.

Mr Kilonzo said they started by processing 5,000 litres per day.

This has since grown to 200,000 litres and the factory’s target is 300,000 by next year so as to expand to other markets in Kenya.

The factory is already distributing its products in the North Rift, Nakuru and Mombasa.

Last year, the plant had a turnover of Sh3.5 billion compared to Sh2.9 billion the previous year and officials are optimistic that earnings are set to grow in coming years with the launch of premium products like yoghurt, butter, ghee and cream under the flagship of “Fresha” and markets it.

Mr Kilonzo attributed the success of the dairy to extension services offered to farmers, including artificial insemination.

Besides the Sh29.50 paid per litre of raw milk, farmers get annual bonuses and dividends.

The UHT has attracted the youth eying better returns.