Dairy farmers affiliated with the Meru Central Dairy Cooperative Union are set to benefit from lower production costs and increased earnings following the commissioning of the Sh500 million Meru Maziwa Millers Feed Mill at Mitunguu in Imenti South Sub-county.
The feed mill, commissioned during the launch of Phase One, was constructed through a partnership between the Government of Kenya, which contributed Sh200 million, and farmers, who raised the remaining Sh300 million.
Representing President William Ruto at the event, Deputy President Kithure Kindiki said the new facility will reduce the cost of dairy feed from the current average of Sh3,200 to about Sh2,800 per bag, enabling farmers to increase their profit margins.
The Deputy President also announced that the farm-gate price of milk will increase from Sh50 to Sh52 per litre beginning in August, further improving returns to dairy farmers.
He noted that the government has significantly reduced the cost of sexed semen from Sh7,000 to Sh1,400 to enable more farmers to improve the quality and productivity of their dairy herds.
”As we celebrate the success of Meru Dairy, let us also remember what the government has done for you. We will continue increasing the supply of subsidized sexed semen across the country,” said Kindiki.
He further pledged additional government support for the expansion of the feed mill, announcing Sh100 million for Phase Two and another Sh100 million through the supplementary budget to facilitate Phase Three of the project.
He said the investment demonstrates the government’s commitment to strengthening the dairy sector and enhancing food security while creating sustainable incomes for farmers.
Meru Central Dairy Cooperative Union Chief Executive Officer Kenneth Gitonga described the feed mill as a transformative investment that will significantly lower production costs and increase milk output.
Gitonga said the cooperative has recorded remarkable growth over the last three years, with membership increasing from 11,012 farmers in 2023 to 161,874 currently.
He added that daily milk intake has risen from 287,000 litres to 670,000 litres, while the number of affiliated cooperative societies has increased from 139 to 168.
According to the CEO, the cooperative’s annual sales grew from Sh9.3 billion in 2023 to Sh20.1 billion in 2025 and are projected to reach Sh25 billion next year if the current growth trend continues.
He said the processing plant has a capacity of 720,000 litres per day and expressed confidence that milk deliveries will soon surpass the current capacity, making expansion a priority.
Gitonga appealed for additional government funding to support the construction of Phases Two and Three of the feed mill.
He explained that Phase Two will add another production line, while Phase Three will include silos and dryers to increase storage capacity for raw materials in anticipation of growing demand for livestock feeds across the Mount Kenya region.
He noted that the cooperative currently supports 161,874 farmers, employs 1,350 staff and sustains about five million people along the dairy value chain.
He further revealed that the union plans to introduce a quality-based milk payment system next year and appealed for government support in acquiring equipment to assess milk quality.
”We are targeting to process more than one million litres of milk per day by the end of this year, a goal that will be supported by increased adoption of sexed semen technology to produce more high-quality dairy heifers,” said Mr Gitonga.
The CEO also celebrated the cooperative’s first-ever export of milk to the Comoros, describing the milestone as evidence of growing international confidence in the quality of dairy products produced by Meru farmers.
He said the achievement has opened new export markets and positioned the cooperative for further growth in regional and international trade.
