Industry stakeholders have identified poor governance as a primary factor behind the decline of several dairy cooperatives, with elected leaders often lacking essential management expertise.
Cooperative boards, selected through member elections, frequently appoint individuals with high vote totals rather than proven administrative skills, according to insiders. This practice has led to weaknesses in financial oversight and long-term planning, critical for expanding operations and safeguarding member investments.
In response, Brookside Dairy has partnered with the Co-operative Bank's consultancy arm to provide governance training to officials across 27 counties. The program covers performance metrics, internal controls, and sustainable business practices to strengthen the sector's competitiveness.
"Ensuring cooperative success is vital for both farmers and the industry," stated Brookside's manufacturing director, John Gethi. "Sustainable management will drive production growth and stabilize milk pricing." The initiative follows reports of processors reducing farm gate prices by Sh3 per liter in 2019 amid oversupply concerns.
