Dairy cooperatives in Kenya are going for a merger

Written by Fork CMS on 4 May 2012 - Be the first to comment

Kiambaa Dairy and Ndumberi Dairy are faced with a tough decision: if they want to have a chance at survival as small cooperatives in the dynamic dairy market in Kenya, then they will have to join forces. That is why during the dairy study tour in the Netherlands from April 17 to 25, the intended merger between both dairy cooperatives will be a central subject of discussion. During their visit to the Netherlands, not only will they get to know the dairy sector and farms in the country, but the route will be clearly defined that must lead to one single, strong cooperative with more than 4,000 members who together produce some 40,000 kg. of milk daily.

The Netherlands is famous worldwide for its cheese and cows, while the cooperatives in the country also have a rich history of mergers. It seems that cooperation comes in the genes of Dutch farmers. After innumerable merger trajectories, through the years the thousands of small dairy cooperatives of 100 years ago have become fused into one single giant, FrieslandCampina. This is why during the interview with Jan Uijttewaal, Vicepresident of FrieslandCampina, the experiences he has had with the fusion between Friesland Foods and Campina will surely be a recurrent subject of discussion. This is the type of extensive knowledge the Kenyans want to be exposed to, because in their country merger trajectories between cooperatives don't occur, while on the other hand there are countless examples of failed collaboration (mostly when joint ventures are involved).

Kenia, dairy, The NetherlandsDuring conversations with the President and Manager of Rouveen, a dairy products factory, the experiences it has had with the 1987 fusion between 'De Vlijt' and 'De Kleine Winst' were discussed over and over again. "It is important, as partners in the merger, to formulate a shared goal and to keep the members strongly involved during the fusion process," was the advice given by the Director, Ben Wevers, to the visitors from Kenya. Egbert Koersen, the President of the Board of Directors, voiced his hope that having taken the first step of forming a merger, in the long run the cooperative will be able to exercise more influence on defining the price of milk in Kenya. According to Koersen, "the Kenyan farmers will eventually come to benefit from this".

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