Githunguri Dairy Farmers Cooperative Society, makers of Fresha milk products, has gotten international market for their UHT milk and will be exporting 250,000 litres per month to Oman, Yemen and Saudi Arabia.
Speaking during the society's annual general meeting in Githunguri stadium, the society's chairman George Kinuthia said they have dispatched 113,750 litres of UHT milk which will increase when their market improves.
"The Kenyan milk market has been grabbed by our neighbouring countries and that is why we decide to look for more market outside the African continent and that is how we got this new market. The market is there and we have already dispatched our first batch of milk to Saudi Arabia," Kinuthia said.
He said the agreement will see the society paid in dollars which will be of help as the dollar is growing.
The society, which is the third largest milk processor in the country, saw an increase of the total revenue from Sh9.2 billion to Sh9.9 billion and surplus before tax decreased from Sh435 million to Sh228 million. As of June 30, this year, the net asset position of the society was Sh3.14 billion compared to Sh2.95 billion previously.
The society's share capital increased during the year from Sh589.1 million to Sh607,9 million. The members final dividend was Sh158.2 million down from Sh175.4 million where the farmer is to get paid dividend at a rate of Sh1.80 per share, a Sh20 cents decrease from last year where share was paid at Sh2. This was as a result of cost of business which went up and cost of living rising.
Kinuthia said the cost of living has become too high with the products that the society uses in doing business increasing prices tremendously.
"Farmers have a challenge of buying animal feeds such as bran, maize germ, pollard and dairy meal as prices have gone up," he said.
He said the materials that the society uses to produce milk, the spares and the dollar went up by about Sh28 in a span of one year, this he said, consumed the society's profit and hence they could not pay their farmer’s as well as they would want to.
"On average last year, the farmer got Sh45 payment per litre of milk but this year it is Sh49 per litre. Even though we have had challenges this year, we still managed to raise the payment of our farmers' milk," he said.
Kinuthia said they are buying most of the materials used from outside the country hence spending a lot of money and this means reduction of profit.
"Taxation for everything has gone up from the farm level up to the processing level, we urge the government to do something for the prices to come down, especially for farming related products."
He called on the government to come to the aid of the processing industry to bail them out from huge debts owed to them by Uchumi supermarket who he said owes the society Sh44.5 million. Others are Nakumatt supermarket Sh45 million, Naks superstores limited Sh16.9 million, Wonderland foods Sh9.4 million, Saltes Supermarket Sh18.6 million, Tuskys supermarket Sh68 million, Mulei supermarkets Sh13.2 million.
"The supermarkets owe us a lot of money and if at all that problem will not be addressed it might end up affecting the society.
Supervisory committee chairman Joseph Karanja said the society has grown its membership to 27,607 members up from 27,113 last year. He also said the the society has 87 milk collection points, 13 cooling centres, 59 stores and one warehouse, six milk tankers and are collecting 265,000 litres of milk every day up from 236,000 litres of milk last year.
"Our milk products have continued to gain popularity where the society has ventured into new markets and is selling milk in areas such as Bosmar, Kakuma, Mpeketoni, Lamu Sambati and also overseas," Karanja said.
Ruth Njeri a farmer, said farmers are suffering due to high cost of animal feeds which is of low-quality and affects milk production.
"The President and his deputy were here in Githunguri for the Githunguri dairy farmers show exhibition and announced that the government has zero rated all farm inputs and animal feeds inputs, but all we see is the cost of products going up. This is affecting production. We call on government to keep their word and help out the farmers," Njeri said.