Business News
KCC now seeks to double its capacity
Workers from Ol-kalou dairy pour out part of 10,000 litres of milk that had accumulated at the plant. Minister for Co-operatives Development Joseph Nyagah said the milk glut being experienced in Kenya has been caused by illegal imports of powder. Photo/FILE
Posted Sunday, March 14 2010 at 17:53
The New Kenya Co-operative Creameries is in the process of doubling its intake from 400,000 litres of milk a day to 700,000.
Minister for Co-operatives Development Joseph Nyagah said that this will be achieved after repairs are carried out on faulty machines.
The minister said he had toured various milk production areas and established that causes of inefficiency were minor and would be rectified in due course to save farmers from making losses.
“In most places we found out that faulty machines were the cause of farmers’ woes. Some machines were not in use yet they had been officially commissioned. We are determined to address the anomaly,” said the minister.
He, at the same time, said the milk glut being experienced in Kenya has been caused by illegal imports of powder. Mr Nyagah said major processors had diverted their attention to the powdered milk to cash in on huge profits ignoring the plight of farmers.
Not used
“The powder milk imported during the previous dry season had not been used up by the time local production increased to an extent of exerting pressure on the processing capacity of the New KCC and private dairies,” said the minister.
Mr Nyagah said successive government policies led to more investment in dairy farming with the resultant high production catching policy makers unawares.
“Increased production was also due to increased pasture after rains pounded several parts of the country. But, the government is committed to find a lasting solution to the milk glut,” he said.
Mr Nyagah spoke on Saturday during the closure of this year’s national Agricultural Society of Kenya (ASK) show in Eldoret Town. Over 100 exhibitors attended the event.
He said the government would support farmers in their quest to own New KCC once privatisation process is complete. “The farmers have challenged me to put up a strong case that the firm belongs to them. It is held in trust by the government and should be sold to them,” the minister told the press.
He said plans were underway to organise farmers into co-operatives in readiness for the privatisation process so that they can collectively apply to own the firm.
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