Meru Central Dairy Cooperative Union has commissioned a new animal feed mill in Mitunguu as it seeks to cut production costs for farmers and sustain rapid growth that has seen its milk intake more than double and annual sales rise from KES 9.3 billion to KES 20.1 billion in just two years.
The factory, officially commissioned on Saturday by Deputy President Prof Kithure Kindiki, has begun producing dairy and poultry feeds, with the government announcing an additional KES 200 million for its second phase after fulfilling President William Ruto's earlier pledge of KES 100 million towards its construction.
Speaking during the 11th Annual Meru Dairy Farmers Field Day at Meru Showground, Meru Central Dairy Cooperative Union Chief Executive Officer Kenneth Gitonga challenged farmers to increase milk production, saying improved yields were achievable through better feeding and breeding.
Gitonga said the cooperative had recorded remarkable growth since 2023, with membership rising from 11,012 farmers to 161,874. Milk deliveries increased from 287,000 litres to 670,000 litres, while the number of affiliated cooperative societies grew from 139 to 168.
He said annual sales had more than doubled from KES 9.3 billion in 2023 to KES 20.1 billion in 2025 and are projected to reach KES 25 billion this year.
"Our growth demonstrates that dairy farming is becoming more profitable. Farmers should now focus on increasing milk production because it is practical and achievable," Gitonga said.
He said the newly commissioned feed mill would produce quality animal feeds for dairy cattle and poultry, reducing farmers' dependence on expensive commercial feeds.
Meru Central Dairy Cooperative Union is among Kenya's largest dairy cooperatives.
While national processors such as Brookside Dairy, New KCC and Githunguri Dairy process larger volumes of milk, Meru Central has emerged as one of the country's fastest-growing farmer-owned dairy unions, driven by rising membership, expanded milk collection and investments in value addition, including the new animal feed plant.
Gitonga said the cooperative had already drawn up expansion plans.
"In phase two, we want to build a second processing line, while phase three will include silos and grain dryers so that we can store enough raw materials to meet the anticipated demand from Meru, Embu and Tharaka Nithi counties," he said.
Prof Kindiki said the government would finance the second phase of the project with an additional Sh100 million, saying the investment would lower production costs and improve farmers' earnings.
The Deputy President said the factory would sell dairy meal at KES 2,800 per 50-kilo bag, down from the prevailing market price of about KES 3,200.
He also announced that the farm-gate milk price would increase from KES 50 to KES 52 per litre from August 1.
Prof Kindiki said the government had also reduced the cost of sexed semen from KES 7,000 to KES 1,400 to enable more farmers to improve their herds and increase milk production.
Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said poor governance and mismanagement had contributed to the collapse of many cooperatives across the country, adding that the government was preparing a new Cooperatives Bill to strengthen accountability and revive the sector.
Agriculture Cabinet Secretary Mutahi Kagwe said the government would increase the supply of subsidised sexed semen as part of efforts to boost dairy productivity.
