12mfcs-5884 - Economies of scale for strong market position in dairy
Mumberes farmers cooperative society limited (MFCS) is a relatively old cooperative started way back in 1964 with fairly developed structures. It was registered under the Ministry of Cooperatives and Development as a dairy cooperative society. Its aim is to bulk and market milk from the farmers to the processors, institutions and local consumers. The membership grows at an annual average of 10% and now stands at 1373 farmers. It posted a figure of KSH 52.277.880.7 in 2011, a 38.25% increase from 2010. Milk Bulking remains the major activity contributing over 90% of business volume. The future growth and success of MFCS lies in its ability to set strategic priorities as well as to review options for building supply and market power, e.g. through creating economies of scale by joining foreces with one or more neighbouring cooperatives. For this to materialize strategy, systems and structures need to be in place and therefore Agriterra will assist Mumberes in improving its financial management, cooperative governance and supply chain management.