Efficient operations at dairy processing plant (2)

Partnership Mukurwe-ini and Agriterra is all about starting up processing plant. Mukurwe-ini has installed its new yoghurt processing line. Testing with water is done and soon first yoghurt will be processed. Activities in the action plan have the following overall goals (as elaborated by Mukurwe-ini): 1. Receiving and processing 50,000L/day at the end of 2016, 40,000L/day from its members and 10,000L/day from other stakeholders. MWDL also aim to be processing 40,000L/day by mid-2016; 35,000L/day from its members by the said period. 2. Increase the product portfolio by investing on a separator and a butter churner. Also, look into other opportunities by undertaking a feasibility study on water bottling. 3. Complete the already constructed satellite cooling centre and invest on one more 4. Prioritize the Production and marketing of yoghurt. Though milk has not been able to improve significantly in Mukurwe-ini, they have been able to lower the levels of fluctuations' between the peak and off peak periods. This year, during the months of Jan to end of March, Mukurwe-ini received a low of 24000L/day and so far they have been able to record a high of 30000L/day including close to 3000L from a small cooperative within Nyeri County. For all these milk they are receiving, they are able to process upto 83% of it. Majority of the processed milk being in bulk (60%) and the rest in pouches (40%). Though pouches gives good margins, the company has been curtailed by the low capacity packaging machine that can package upto 5000 pieces per hour excluding cleaning time. The company has however ordered a new packaging line meant to increase the packing capacity and improve margins for the company. Before this was arrived at, we did some calculations together with Fred and proved that from the differentials and assuming that the same marketing conditions prevail, Mukurwe-ini will be able to repay the machine in less than four months. Agriterra has continued to support Mukurwe-ini in its extension and though there has been a low milk increase (3%) for the past three years, the fact that they have reduced the margin of seasonal fluctuations is a big stride in the right direction. They now have two full time extension staff and brought in recently two SPEs on board to support the team. Extension, processing and marketing therefore remains the three main areas of focus. In Feb 2015, the company was already making good profits, they made 8 million after loan interests and this allowed them to pay the farmer a record high milk price of KES 34 per litre. At the factory, construction issues identified by the mission team in January have already been addressed; now the homogenizer working and a new ice bank ordered for the existing one to be fully repaired and be on standby. The company got a grant of KES 26M from the County government of Nyeri and they have followed the January mission's advice that they should invest it on a yoghurt processing line. This line has been ordered at a cost of around KES 35M.