Githunguri Rotary Presentation


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Githunguri Rotary Presentation

  1. 1. Githunguri Dairy Cooperative Society Oikocredit, The Rotary and PTC+ Collaboration November 2007
  2. 2. Githunguri Dairy Farmers Co- Operative Society  Established in 1961 with a membership of 31 small scale farmers  Current active membership is 9,000 farmers who produce and supply milk to the society  Members are small scale farmers whose average land ownership is less than 3 acres with an average of 5 cows  Membership open to residents of Githunguri who have to pay €32 membership fee, purchase ½ share of the plant at €210 and own at least 1 milk producing cow  Membership payments can be made in installments from milk proceeds
  3. 3. Background cont.  Rapid growth experienced between 2003 and 2007  Construction of processing plant building was funded by farmers savings over 13 years.  Oikocredit financed purchase of equipment for the plant with a loan of €880,000 in 2003. The plant was commissioned in July 2004  Due to unprecedented growth, Oikocredit provided a 2nd loan of €670,000 in 2006 to fund purchase of additional equipment.  Milk production has increased from 30,000 litres a day in 2003 to 120,000 litres a day in October 2007  The plant has a highly competent and professional board and management team  The society’s brand name ‘Fresha’ products are sold throughout Nairobi and its environs.
  4. 4. Achievements  Githunguri were the first to introduce pouch milk in Kenya. This has since been copied by all the milk processors in Kenya. Products include: - Fresh pouch milk, yoghurt, butter, sour milk, ghee  Unprecedented growth in milk processing over just 3 years  Introduced stores where members can purchase commodities and animal feeds against milk deliveries  Training and extension services for farmers  Oikocredit has provided Technical Assistance for technical and managerial expertise
  5. 5. Structure of Society  Githunguri has 2 interdependent operations: - The mainstream society, which involves milk collection and provision of various services to members e.g. extension services, stores - The milk processing plant. Whilst the plant has recorded resounding success, the society and its members are faced with great challenges.
  6. 6. Challenges  Low farm level productivity due to poor husbandry skills  Lack of quality management systems  Poor handling of milk from the farm to the plant gate  Lack of efficient methods of milk collection Addressing the above challenges will:  guarantee long-term competitiveness of the operation  secure the livelihood of thousands of households who depend on dairy farming  benefit farmers in Githunguri, and also in the entire region – Githunguri is a learning case for small scale farmers in Uganda, Tanzania and Rwanda
  7. 7. Rationale for External Support  The society is seeking support from The Rotary and PTC+ International in the following areas to implement the above initiative: 1) Financial Assistance 2) Technical Assistance 3) Soft loan
  8. 8. Components of Support  Establishment of model farms  Milk collection and transport - Collection Centers - Road tankers  Training of Staff
  9. 9. A: Establishment of Model Farms  Establishment of model production units jointly with progressive farmers. These will be farm schools – training on maximum land utilization, productivity and milk quality management  A minimum of 40 units to be established, each to serve approximately 200-300 farmers  To include production of training information/ content  Estimated investment – Euro 80,000
  10. 10. B. Milk Collection and Transport  Existing milk collection facilities (buildings and utilities) to be upgraded to acceptable standards  Upgrading of the facilities for handling milk in line with the proposal of using road tankers  Establishment of at least 1 centre with cooling facilities for areas furthest from the plant with capacity to handle 10,000 litres
  11. 11. Proposed Process  Carry out a situational analysis of the current collection centers and give a recommendation of appropriate changes. This will assist in quantifying the required investment (€9000)  Development of one model centre based on the above recommendation (€15-20,000)  Establishment of one collection centre with cooling facilities (€52,000)  Total Estimated investment – Euro 76,000 – 81,000
  12. 12. C. Road Tankers  Replace the current 50 litre milk cans used for milk collection with insulation or refrigeration mounted road tankers of 5,000 to 10,000 litre capacity. This will yield savings in the following: – cost of cans, repair, replacement, stock taking, storage, cleaning water and detergents – Cost of transportation – Cost of labour  Estimated soft loan – €589,600
  13. 13. D. Training of Staff  It is proposed that the training support be in line with the overall objectives of this initiative  This will require that PTC+ in collaboration with Githunguri develop a tailor-made program covering – Milk systems and quality – Milk processing  The above will require an interaction program of staff of the Society and PTC+ through a study tour – part Netherlands, part Kenya during the implementation of the initiative.  Estimated investment – Not Known
  14. 14. Summary Work stream Component Estimates in Euro 1 Model farms Implementation of model farms 80,000 to be used as farm schools 2 C o l l e c t i o n Situational Analysis 9000 Centres Model collection centre based 15-20,000 on the outcome of the analysis. This collection centre will not have mechanical cooling systems Model Collection centre with 52,000 cooling facilities for 10,000 litres with cooling systems 3 Road Tankers This can be in the form of a loan 589,600 TOTALS 745,600-750, 600
  15. 15. Colophon Presentation: Githunguri, Oikocredit, PTC+ and The Rotary Collaboration Presented by: Judy Ngarachu Ag. Regional Manager-East Africa, Oikocredit Date: 19th November 2007