Are you a dairy farmer looking to expand your estate but do not have enough capital? Well, Co-op Bank is here to help you actualize your dream.

The bank has introduced dairy loans to help dairy farmers across the country to achieve their short and long term goals.

The product, which is targeted to dairy farmers, dairy companies, and dairy groups all over the country, supports inputs, production, storage, processing, value addition, and marketing of goods. The loans offered under this program are:

1. 1. Dairy Farm Input Finance: this enables farmers to buy animal feed, fertilizer for pasture, livestock drugs, and Al services to boost milk production
   2. Supply Chain Finance: To facilitate timely payment for milk delivered by farmers and other creditors on time.
   3. Dairy Processing Plant Financing: To facilitate establishment and refurbishment of dairy processing plants

Requirements:

To be eligible for the loan, a farmer must;

1. 1. Have an account with Co-op Bank (new or existing) Milk supply contract with a dairy processor
   2. Have 3 years of experience in dairy farming/processing
   3. Direct Milk proceeds payment through their Co-op bank account

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According to the lender, the minimum financing is Sh. 5,000 while maximum financing is dependent on repayment ability.

Edward Njeru, a beneficiary of the product, says after opening an account with Co-op bank, earnings from his dairy farm went through his account at the bank.

After saving for a while, he approached the bank with a financing proposal. “I wanted to acquire additional pure breeds as well as refurbish the dairy structure.” His initial financing was to the tune of Sh. 2 million.

Esther Kariuki, the Head of the Department of Agriculture at Co-operative Bank, says for a financial institution, it is important that the farmer applying for the loan demonstrate that they are determined to succeed.

“As a financial institution, we do not just want to give farmers loans for the sake of it: we need to have faith that the farmer will repay the loan,” Kariuki says.

Click here to apply for Co-op Bank agribusiness financing

In addition, a farmer has to show that they know what they are doing, i.e., Knowledge of animal husbandry and everything in livestock farming.

Such a farmer, Kariuki points out, is likely to get things right and make money running the enterprise; significantly raising their chances of receiving the loan.

“If you have no experience with dairy farming we advise you to consider working with someone who already has experience.

“This way you would learn from their mistakes and increase your chances of succeeding. A farmer who has knowledge and experience inspires confidence from the bank,’’ she noted.