Business

Brookside Dairy splashes Sh323m annual bonus for farmers countrywide

Monday, December 11th, 2023 06:34 | By
Brookside Dairy splashes Sh323m annual bonus for farmers countrywide
Nicholas Mutisya, a laboratory analyst verifies the quality of raw milk at the processor’s Kiganjo cooling centre. PHOTO/Print

Milk processor Brookside Dairy announced a Sh323 million bonus payout for farmers for raw milk delivered to it this year.

The move, since lauded by farmers as a game changer in the industry, could pile the pressure on other processors, with scores of farmers said to have shifted loyalty to Brookside to benefit from the firm’s guaranteed monthly payment for milk and the bonus rewards.

On Saturday, the farmers contracted to the processor got an early Christmas gift when the processor released Sh182 million in reward bonuses for milk delivered between June and November this year, coming hot on the heels of another Sh 138 million paid to the farmers last June. In Kirinyaga County, farmers hailed the move by Brookside, saying it was a befitting reward to their hard work on the farms.

“We are now seeing a trend where dairy is a guaranteed source of income for families in Kirinyaga County. This explains why every family is now investing in a dairy cow, and Brookside is rewarding our hard work by paying us a bonus for every kilo we deliver to them,” Nancy Njoki, who sells her milk to Brookside on the Kirima-Murungaru route, said. The latest payout, under a reward scheme operated by the firm, will benefit dairy groups and individual farmers across the country who signed up for the programme and have been supplying raw milk to Brookside during the contract period. Emmanuel Kabaki, Brookside’s General Manager for milk procurement said the farmers were rewarded for meeting agreed milk supply targets in both quantity and quality.

“The farmer groups and individual suppliers who benefitted are those who signed up for our reward scheme and were given raw milk supply targets, for both quantity and quality. We are rewarding these farmers as a recognition of their toil in meeting these targets,” he said.

The farmer reward scheme was pioneered by Brookside five years ago as it sought to appreciate the critical role raw milk suppliers play in the upstream phase of the dairy value chain. The payout has been appreciating over the years, as the processor’s base of contracted farmers continues to grow.

Over the time, the volumes and quality of milk supplied to the processor has continually grown, with this year’s intakes rising on better dairy practices by farmers. The growth in milk volumes is also attributed to an aggressive farmer empowerment programme by the processor. This year alone, Brookside spent over Sh30 million in farmer extension services, as it sought to consolidate its market leadership position in Kenya’s dairy market, according to Kabaki.

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