Privatised dairy plant in dire financial problems

By Daniel Sabuni

An Arusha based-milk processing plant, New Northern Creameries Limited (NNC), which was privatised in 1998 is facing serious financial problems including a debt of more than Shs. 60 million it owes dairy farmers of Arusha and Kilimanjaro Regions. The farmers supplied milk to the company on loan basis since 1998.

This was revealed in a joint meeting of the plant management and the dairy farmers held at the Golden Rose Hotel in the Arusha Municipality last week.

One of the creditors from Kilimanjaro Region who is claiming millions of shillings from the company, Mr. Locken Temba said that they were tired of promises which were never fulfilled.

"The factory owes individuals and groups huge amounts of money and they are still continuing to receive milk supplies from farmers on a loan basis", he said.

Another dairy farmer from Arumeru District, Mr. Emmanuel Mbaga told the meeting that he did not see a promising future for the NNC in view of the staggering amount of money it owes farmers.

"We are only being deceived because since 1998 not a single cent has been paid to us and yet we are being asked to sign a contract …………… I doubt! We shall be obliged to go to the Court," lamented Mr. Mbaga.

The Director of the factory, Mr. John Kyenkungu said saturation of milk in the market, high charges of electricity and water and various municipal levies are some of the causes for the company’s financial woes.

However, he added that he had organized a programme of individual cattle keepers to continue supplying milk to the plant on a loan basis and they would be paid in instalments.

The one-day meeting was also attended by the Arusha District Commissioner, Mr. Fulgence Saria.

Last modified: November 14, 2003.
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