Aggregation model helps farmers earn record prices for coffee, milk
JOSEPH NG’ANG’A- KNA
The aggregation model deployed by cooperatives across the country has helped boost farmers’ incomes.
The model has enhanced the processing and value addition of agricultural products, enabling small-scale farmers to attain the required quantities and secure better market prices.
Cooperative Alliance of Kenya (CAK) Chief Executive Officer (CEO) Daniel Marube said that small-scale farmers in the dairy, coffee, tea, pyrethrum, and sugar sectors have improved their incomes over the years as they benefit from the cooperative aggregation model.
Marube noted that this year, coffee registered some of the highest prices, with Njuriga and Othaya Coffee Societies in Nyeri paying farmers Sh172 and Sh158 per kilo of cherry, respectively.
“Such payments improve household incomes and uplift the livelihoods of farmers.
In dairy farming, Meru Dairy Society is another example of empowerment, recording 195 million litres of milk last year and paying an average of Sh900 million every month to farmers after collecting an average of 17 million litres per month.
“It achieved a turnover of Sh18.3 billion in 2024. These are examples of the direct impact on rural economies and communities,” Marube said.
Speaking during a precursor event for Ushirika Day, which will take place on July 12, Marube disclosed that Meru Dairy has provided farmers with a consistent and sustainable income of Sh52 per kilo for the past three years.
“The dairy pays Sh50 every month, and Sh2 as a bonus at the end of the year, payable every February. And therefore, the farmers can plant their finances based on their daily production,” Marube explained.
Additionally, the cooperative movement has also played a key role in the affordable housing space by providing mortgages and construction funds for their members where they have financed more houses than banks combined.
“Cooperatives also provide money for members to furnish their houses as well as supporting members who could not afford to get normal loans from the bank to access decent and affordable housing,” he said.
According to Marube, Small and Medium Enterprises (SME’s) get around 80 per cent of their starting capital from cooperatives and chamas which offer a cheap and accessible source of financing.
“The movement has supported women and youth who have established small and micro businesses that are creating self-employment for themselves and their peers,” Marube explained.
He disclosed that cooperatives have employed over 750,000 people directly and indirectly in various value chains and they believe that in the next 10 years, the worker cooperatives may be one of the largest employers of the young people in Kenya.
To drive the stability of cooperatives, Marube urged members of parliament and the Senate to fast track the Cooperatives Bill, especially now that they are in the International Year of Cooperatives to gift the cooperative movement in recognition of the great work they do in supporting economic growth.
“We are also urging the county governments to give priority to the cooperatives because it touches the lives of every Kenyan in their counties.
"Our request is that counties provide sufficient budgets to employ qualified cooperative officers who will provide extension services, capacity building, audit and training on good governance and ethics which will champion value chains within the agricultural cooperatives which fall under the mandate of the county governments,” Marube said.
On the 10th, 11th, and 12th July 2025, the cooperative movement will have exhibitions at the KICC. “We call on Kenyans to visit and learn more about the cooperative movement and on how to attain financially resilient business models,” Marube said.