Murang’a Dairy Farmers Shift From New KCC as Delayed Payments Squeeze Milk Production

Dairy farmers in Murang’a County are moving some of their milk to private buyers after delayed payments by the New Kenya Cooperative Creameries (New KCC) left producers struggling to meet the daily costs of keeping their cows.

Farmers affiliated with the corporation say they have gone for about three months without receiving payment for milk delivered, forcing some to seek alternative buyers despite the benefits they associate with cooperative marketing.

David Kirika Mwangi, a dairy farmer in Murang’a, said he decided to sell his milk privately after repeated delays made it difficult to finance feeding and other farm operations.

“Milk cooperatives will not only pay meagerly but will also delay the payments and that affects production because you have to feed your cow,” Mwangi said.

For dairy farmers, delayed payment presents a particularly difficult challenge because milk production requires continuous expenditure. Feed, labour, veterinary care and other costs have to be met regardless of when farmers receive money for milk already delivered.

Mwangi called for government support to reduce the cost of animal feed ingredients, which he identified as one of the biggest pressures facing dairy producers.

He cited the high prices of inputs such as cottonseed and sunflower, as well as the cost of producing maize, a major ingredient in feeds such as maize germ and dairy meal.

Lower feed costs, he said, would enable farmers to produce more maize and prepare sufficient silage to maintain milk production during dry periods.

“That way we will never have a milk shortage in our country like we are experiencing currently,” he said.

Samuel Kimotho, a dairy farmer from Kamahuha in Maragua, said fluctuations in milk prices had also influenced his decision to sell to private companies.

While acknowledging the advantages of cooperative membership, Kimotho said unpredictable payments had made private buyers a more practical option for his farm.

“The benefits of being in a cooperative cannot be over emphasized but considering unstable prices and delayed payments, I decided to sell my milk privately,” he said.

He urged the Government to ensure farmers are paid on time while also addressing the high cost of raw materials used in feed production.

Timely payment, he said, would give farmers greater confidence to invest in dairy production and increase their output.

The issue has also attracted political attention, with Kangema MP Peter Kihungi calling on New KCC to settle outstanding payments to farmers.

Kihungi said delayed payments were affecting dairy farmers across the Mt Kenya region and pushing some producers towards private milk buyers.

“Our people are hardworking and we must ensure they enjoy the benefits of hard work. The dairy sector is already challenging and missing payments for months compounds this even further,” he said.

The concerns come as the Government pursues measures aimed at reducing production costs and increasing dairy productivity.

Deputy President Kithure Kindiki, during a tour of Murang’a, assured farmers that the Government would work towards streamlining the sector and ensuring producers receive their payments.

He also highlighted subsidised sexed semen as another intervention aimed at expanding dairy herds. The technology is being offered at KSh1,000, down from the previous price of KSh8,000, according to the Deputy President.

Sexed semen is intended to increase the likelihood of producing female calves, providing farmers with more replacement heifers and supporting the expansion of productive dairy herds.

For farmers in Murang’a, however, access to improved breeding technology does not resolve the immediate challenge of cash flow.

Milk production is a daily enterprise, and farmers must continue buying feed and maintaining their animals even when payment for milk is delayed.

The experience of Mwangi and Kimotho highlights the importance of reliable payment systems alongside interventions aimed at improving genetics and lowering production costs.

As the Government seeks to strengthen Kenya’s dairy value chain, farmers say ensuring that money for milk reaches producers on time will be just as important as increasing the quantity of milk produced.