Efficient operations at dairy processing plant (2) <p>Partnership Mukurwe-ini and Agriterra is all about starting up processing plant. <br>Mukurwe-ini has installed its new yoghurt processing line. Testing with water is done and soon first yoghurt will be processed. </p>

<p>Activities in the action plan have the following overall goals (as elaborated by Mukurwe-ini):<br>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.<br>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. <br>3. Complete the already constructed satellite cooling centre and invest on one more<br>4. Prioritize the Production and marketing of yoghurt.</p>







<p>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. <br> 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. <br>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.</p> <p>2016 Goals:<br>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.<br>2. Increase the product portfolio by investing on a separator and a butter churner. Also  look into other opportunities for diversification. <br>3. Complete the already constructed satellite cooling centre and invest on one more<br>4. Prioritize the Production and marketing of yoghurt.</p> <p>The action plan will focus on increased milk volumes  starting up processing of yoghurt and critically assessing opportunities to further diversify product portfolio. Much focus will also be on marketing and on organisational strengthening on financial management and governance.</p>