MEMBER OF THE MONTH

MAY 2010: NEW KENYA CO-OPERATIVE CREAMERIES LIMITED

“Life’s Goodness Everyday!”

History:
The history dates back to 22nd August 1925 when Kenya Co-operative Creameries (KCC) Limited was incorporated as a limited liability company. The principal business of KCC Limited was buying, processing and selling dairy products both in the domestic market and export market.

The company started with only one factory in Naivasha but today has eleven 11 dairy processing factories and eleven 11 cooling plants. Growth was mainly achieved during the period 1966 – 1988, as at that time there was a lot of technical, technological and financial assistance from DANIDA.

Besides the factory that was set up at Miritini to serve the coastal region, the rest of KCC Limited factories and cooling plants existed in the medium and high potential parts of Kenya, where over 70% of the population lives. By 1987 - 88, KCC Limited was selling about 1 million litres of milk per day with purchases from dairy farmers reaching a peak of 1.4 million litres per day.

By 1992, the dairy industry was liberalized and other private processors came in. KCC Limited was unable to restructure its operations and reduce the increasing operating fixed costs. There were also serious financial irregularities and procurement abuses due to lax management. In addition, there were serious delays in payments to farmers and suppliers. KCC Limited developed serious working capital constraints that resulted into huge borrowing to settle outstanding creditor payments and finance the purchase of milk from dairy farmers.

In an attempt to address the lost market share, KCC Limited became a ‘buyer of last resort’ in the industry. This resulted into KCC Limited being flooded with milk that it could not process and sell. Much of the milk was converted into powder and stored. The powder could then be reconstituted into liquid milk when needed but this proved to be very costly and further strained the company’s financial resources.

Over time, stocks of powder became unmanageable, tying further the much needed capital. Moreover, milk purchases were debt managed and thus profit margins shrank as KCC Limited could no longer meet its commitments.

In August 1999, the debenture holders Kenya Commercial Bank (KCB) placed KCC Limited under receivership and Price Water House Coopers were appointed as receiver managers. In August 2000, KCC Limited 2000 was formed and acquired the company through bids invited by the receiver manager.

The rebirth:
The New Kenya Co-Operative Creameries Limited (NKCCL) was registered on 25th June 2003 as a limited liability co-operative and with its predecessor, the Kenya Co-operative Creameries Limited that had operated in Kenya since 1925; it became the oldest dairy processor in Kenya.

Today, the NKCCL is the largest business entity in the East African dairy industry, involved in processing and marketing of milk and milk products.

The business process of NKCCL encompasses receiving of raw milk from farmers, processing it into various milk products and marketing and selling the products.

The product range encompasses a wide range of premium products while there are several others under development in line with our marketing strategies. All NKCCL products are of guaranteed quality and taste, perfected over time and made to the highest international standards.

Our Mission:
To provide high quality processed milk and other dairy products for the benefit of all stakeholders while caring for the communities and the environment around us.

Our Vision:
To be the preferred dairy company of international standing providing high quality products.

Our Core Values:

• Integrity
• High quality products and services
• Trendy and innovative
• Equity and fairness in all our undertaking
• Excellence in everything that we do
• Customer satisfaction
• Environmentally friendly
• Corporate social responsibility
• Embracement of good corporate governance
• Open communication
• Transparency in all our dealings

Our Products:

1) KCC Fresh milk This is pure fresh pasteurized and homogenized milk.

2) KCC Gold Crown Premium Milk This is pure pasteurized and homogenized milk.

3) KCC Mala KCC Mala is smooth satisfying fermented pure whole milk.

4) KCC Flavoured Mala Fruit flavoured Mala is a refreshing and tasty blend of fermented milk and fruit flavours.

5) KCC Yoghurt Delite Yoghurt delite is pure fresh milk that has been cultured to give great tasting refreshment.

6) Long life Milk UHT milk aseptically packed, pasteurized and homogenized for longer lasting freshness.

7) KCC Shake KCC Shakes are a rich and refreshing fruit flavoured aseptically packed milk.

8) Shakalaka Shakalaka is a healthy energy drink that peps you up everyday. It is made from a tasty blend of whey and fruit flavours.

9) KCC Pasteurized Butter Finest, fresh creamery pasteurized butter with a very aromatic flavour and taste

10) Safariland Powdered Whole Milk Safariland powder milk is spray dried milk intended to provide convenience to customers.

11) Safariland Powdered Skimmed Milk This is spray dried skimmed milk intended to provide convenience to customers.

12) KCC Superfine Ghee This is ghee made from high quality milk cream. It has a unique taste and flavour that adds a special taste to food.

13) KCC Rindless Cheddar Cheese It is a semi hard, fairly strong English type cheese of light amber colour. It has a smooth closed texture. It has no rind as the name suggests.

14) KCC Gouda Cheese This is a hard, mild flavoured Holland type cheese. Its texture is slightly elastic and is best for sandwiches. It is rinded and has a red coat that preserves the moisture and flavour.

15) KCC Tavern Cheese This is a very strong flavoured cheese of Italian style, ivory in colour, easily grated, rinded and has a clear coat.

16) KCC Processed Cheddar Cheese This is a pasteurized blend, ripened cheddar cheese and milk powder. It has a pleasing aroma with a homogenous texture.

Contact us:

New Kenya Co-operative Creameries Limited
Creamery House, Dakar Road, Industial Area
P. O. Box 30131 – 00100, Nairobi, Kenya
Tel: +254 (0)20 552 952/65; 557 484
Fax: +254 (0)20 558 705

E-mail: info@newkcc.co.ke
Website: www.newkcc.co.ke

* * *

See other Members of the Month