M a r k e t N e w s
Brookside to recruit 10,000 farmers on doubled processing capacity
Posted on : Thursday, 15th January 2015
Milk processor Brookside Dairy is targeting to recruit at least 10,000 new farmers in a bid to raise supply of the product following an expansion that doubled its uptake capacity.The milk firm has just concluded a multi-billion shilling expansion that increased its processing capacity.
“The factory expansion included installation of a powder milk processing line which doubled the company’s daily raw milk intake capacity to two million litres,” said Mr John Gethi, the Brookside general manager for milk procurement and extension services.Brookside invested Sh450 million in the powder milk processing facility and Sh680 million in the building that houses the plant. The milk processor plans to recruit farmers, especially those supplying milk to informal traders and competitors.
“The informal milk market is still large, but of course we also have some farmers selling milk to competitors who have shown interest,” said Mr Gethi in a press release.Brookside is banking on increased farm gate prices and prompt payment for deliveries to attract new farmers. The processor says it will pay farmers Sh38 per litre, up from Sh34.“Since December, last year we have been buying milk from farmers at Sh38 per litre,” Mr Gethi said.
Brookside is keen on recruiting new farmers from Eastern, Central, Rift Valley, Western and Coast areas.“Our objective is to provide dairy farmers with an assured market for their milk. We shall continue to guarantee payment for all the milk delivered to us as a strategy to empower dairy farmers,” added Mr Gethi.
Marketing campaign
Brookside will also launch a marketing campaign to motivate farmers to sell their milk in bulk for maximum returns. The processor has already put up milk collection booths and cooling stations to ease access.
“We intend to reward our contracted suppliers with transport machinery including trucks, tuk tuks and motorcycles to help them move their raw milk to our collection centres,” he said.
Brookside is the largest milk processor in the country with a market share of 44 per cent. The company concluded the purchase of local milk processor Buzeki last year. Other acquisitions made by Brookside include Spin kit in 2013, Delemare and Ilara .Brookside also made publicly known its planned entry into Ethiopia and Nigeria.The milk processor is also reported to be eyeing a 20 per cent stake in Elemtu Dairy of Ethiopia.
Source : allafrica.com
