Leaders of dairy saccos to get management training
Lack of sound management in the lucrative dairy co-operatives is
to blame for underperformance and collapse of a number of the
societies, players in the industry have revealed.
Like
other co-operatives, members of the management committees of dairy
societies are picked through elections, and more often than not, the
individual with the highest votes, who may not necessarily be the most
experienced in management, gets the nod to take the helm.
However,
it is emerging that such elected leaders may lack basic governance
skills, such as financial management which is critical in the expansion
plans of the societies and future investment of the members’ funds to
boost their financial and asset base.
Amid these
uncertainties, better times seem to lie ahead after a leading processor
announced it would train society officials on corporate governance as a
critical tool for sustainable growth of the sector.
Performance
Brookside
Dairy, which partners with more than 300 dairy co-operatives across the
country, said the training would encompass topics on performance
measurement and internal controls, to ensure that the dairy
co-operatives thrive in an increasingly competitive economic
environment.
“It is in the best interest of member farmers, and the industry
in general, that dairy co-operatives succeed. As the main market for
farmers’ milk, we want all our partner co-operatives to adopt
sustainable management practices that would eventually encourage members
to increase milk production,” said Mr John Gethi, Brookside’s director
of manufacturing and milk procurement.
Under a
partnership with the Co-operative Bank’s capacity building arm, the
Co-op Consultancy and Insurance Agency, Brookside has begun training
board members of the dairy co-operatives from 27 counties.
“The
country’s dairy co-operatives are dynamic and play an important
economic role in the lives of many people … Their success is critical to
the overall growth of the dairy industry,” said Mr Gethi.
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