Meru Central Dairy launches feed mill to lower costs for dairy farmers

KENYA – Meru Central Dairy Cooperative Union has commissioned a new animal feed mill in Mitunguu, South Imenti, marking a major investment aimed at lowering feed costs and improving dairy productivity for farmers in Meru County and neighbouring regions.

The facility, which has already begun production, manufactures dairy, pig and poultry feed. 

According to the cooperative, dairy meal will retail at KSh2,800 per 50 kg bag, compared with the current market price of about KSh3,200, helping farmers reduce one of their largest production costs.

The feed mill is owned by Meru Central Dairy Cooperative Union, which first announced the project in 2023. 

The company says the investment forms part of a broader strategy to strengthen the dairy value chain by improving access to affordable, quality livestock feed.

Speaking during the commissioning, Meru Central Dairy Union CEO Kenneth Gitonga said the cooperative has recorded rapid growth over the past two years, increasing its farmer membership from 11,012 in 2023 to 161,874 today.

Milk intake has also more than doubled over the same period, rising from 287,000 litres to 670,000 litres, while the number of affiliated dairy societies has grown from 139 to 168.

Gitonga said the cooperative’s annual sales increased from KSh9.3 billion in 2023 to KSh20.1 billion last year and are projected to reach KSh25 billion this year.

The company plans to further expand the facility in subsequent phases by adding a second production line, grain silos and drying facilities. 

These investments are expected to improve raw material storage capacity and enable the mill to meet rising demand from dairy farmers in Meru, Embu and Tharaka Nithi counties.

Feed remains the largest production cost

Feed accounts for the largest share of dairy production costs, making affordable, quality livestock feed critical for improving farm profitability and milk yields. 

By producing feed locally, the cooperative aims to reduce farmers’ dependence on commercial suppliers while ensuring a more consistent supply.

The launch comes as Kenya’s dairy sector continues to seek greater efficiency through improved animal nutrition, genetics and farm management. 

Access to competitively priced feed is expected to help farmers increase milk production while improving margins in an industry facing rising input costs.

The new facility also strengthens Meru Central Dairy’s integration across the dairy value chain, complementing its milk collection, processing and marketing operations while providing members with an additional service that supports long-term productivity and growth.

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