Opening of Sirikwa
Sirikwa Dairies & General LTD was officially opened by Hon.Dr. Muhammed Kuti , Minister for Livestock and Development.
As a result of in-depth analysis of market opportunities for high-quality, chilled milk in Sirikwa (Uasin Gishu District) Kenya, the East Africa Dairy Development (EADD) partner TechnoServe concluded that the proposed construction of a dairy chilling plant (CP) in Sirikwa is a commercially viable strategy. The core business of the proposed plant will be bulking and selling fresh, high-quality chilled milk.
The primary product will be fresh, chilled milk sold to well-established milk processors, such as Brookside and New Kenya Co-operatives Creamery (NKCC). The cooling plant will meet Sirikwa Dairy farmers’ need for a reliable and organized milk marketing system that ensures sustainable income streams and spurs further development in the dairy sub-sector. The Company also offers small-scale dairy farmers of the Sirikwa Dairy Farmers Business Association (DFBA) the opportunity to become a competitive, profitable producer within the formal Kenyan dairy industry that generates around KSH 77 million in revenue per year.
The cooling plant will be farmer owned (initially, a minimum of 10% farmer ownership) and provide smallholder farmers an opportunity to own equity and share in future profits in the form of dividends and bonuses. Independent farmers (neither shareholders in the chilling plant DFBA nor members of a dairy cooperative) in the area are also expected to sell milk to Sirikwa Dairies and receive additional bonus payments.
A crucial aspect to the future growth and ultimate success of Sirikwa Dairies is that it operates as a hub of dairy-related, business services – seeds, fertilizers, feeds, artificial insemination (AI), veterinary services, and financial services (especially credit). This strategy will help build farmer loyalty and bring value-added services to dairy farmers, which will increase on-farm productivity and milk volumes. Although some of the five or more active cooperatives and self-help groups under Sirikwa Dairies umbrella operate an agro-vet services store and provides services on credit to farmers, there are no businesses in Sirikwa that unite all of these services into one efficient organization.