Dairy farmers have welcomed the newly introduced bonus payouts for milk deliveries to giant processor, Brookside, saying it will spur production growth.
Representatives of more than 20 large dairy groups, who met in Nakuru on Thursday said that the bonuses for every kilo of milk delivered had motivated farmers to invest more in the dairy value chain as a source of regular family income.
“We are encouraged by this major reform in the industry, where the hard work of farmers is rewarded through bonuses. This is a major incentive to us to continue investing in dairy,” Samuel Salbei, the chairman of Baringo Agricultural Marketing Services Co-operative Societies, said when Brookside released bonus cheques to beneficiary groups in Central Rift, on Thursday.
Mr Salbei said there was a need for farmers to increase milk production by investing in high-yielding dairy breeds.
“Dairy is a volume-based enterprise. For us to earn more from milk, we encourage our members to increase production for each cow kept through investment in better breeds and proper feeding,” Mr Salbei said.
Samuel Ruto, chairman of Kuresoi Self Help Group, said guaranteed payment for milk had made more farmers turn to dairy as an income-generating activity.
Last week, farmers contracted to Brookside Dairy got an early festive treat after the processor paid out a final batch of Sh323 million bonuses for meeting their delivery targets for the year. The processor said it had released Sh 182 million in reward bonuses for milk delivered between June and November this year, with another Sh 138 million in similar bonuses having been paid out last June.
“The reward is a demonstration of our excellent working relationship with all our 160,000 raw milk suppliers across the country. It has boosted the supply of high-quality milk, thus enabling us to tap into a larger share of high-value products,” said Brookside Dairy’s Regional Manager in charge of Central Rift, Samuel Kariuki.
