Githunguri Dairy Farmers Co-operative Society processor in Kiambu, Kenya. PHOTO | NMG
Githunguri Dairy Farmers Co-operative Society increased its pre-tax earnings 55.3 percent to Sh435 million in the year ended June, helped by improved sales.
The society, which collects, processes, and markets its members’ milk and milk products, had booked a gross income of Sh280 million the year before.
“Surplus before tax has also increased from Sh280 million to Sh435 million,” the society said in its financial statements for the review period.
“The management committee propose a final dividend of Sh1.15 per share (2021: Sh1.12 per share) amounting to a total of Sh33.8 million (2021: Sh31.8 million).”
The society’s revenue rose to Sh9.2 billion from Sh8.1 billion, boosting the bottomline of the organisation which recently held its annual general meeting in Kiambu County.
Its chairman, George Kinuthia, said the organisation weathered hard economic times, characterised by the high cost of feeds and erratic rains.
“Our growth in revenue is attributed to an increase in milk prices as well as milk production,” said Mr Kinuthia.
“It’s worth noting that despite the hardships and challenges we encountered, the society increased its milk production by more than six million litres.
In the review period, the society increased the prices of milk per litre from Sh41.50 to Sh45.00.
Mr Kinuthia said their membership has so far grown to over 26,000 farmers, with current daily production of 240,000 litres.
Githunguri is the third largest dairy processor after the New Kenya Cooperative Creameries and Brookside.
Farmers, however, are lamenting over the steep rise in the cost of production that has prevailed in the country for the last two years.
“Prices of dairy meal, maize germ, bran, and pollard has continued to rise thereby negatively affecting dairy farming,” Mr Kinuthia said.
The chairman urged farmers to continue increasing their milk production noting that the market is still big and demanding more every other day. Githunguri is the processor of Fresha brand of milk and milk products.
“The more milk you deliver to us, the lesser the production cost and hence the better payment for farmers,” said the chairman.
The Kiambu-based cooperative is encouraging the youths to embrace dairy farming as a business venture and as part of the government’s initiative to reform the agriculture sector in the country.
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