Dairies reduce farm-gate price of milk on glut


Dairies reduce farm-gate price of milk on glut

An attendant arranges milk products at a supermarket. FILE PHOTO | NMG 

Top milk processors have cut producer prices following an increase in supply amid outcry from farmers.

This will see farmers earn an average of Sh3 less a litre compared with what they were getting in the last couple of months during a severe drought.

Brookside and New KCC will pay farmers between Sh27 and Sh31 per litre depending on the volumes supplied.

Brookside, for instance, will pay Sh27 per litre to a farmer supplying between a litre and 100 litres, Sh28 for between 1,001-2,500 litres and Sh31 for 5,001 litres and above.

New KCC is paying between Sh27 and Sh30 a litre.

Rains that started in May have improved fodder production after a long drought that began last October.

Kenya Dairy Farmers Federation has criticised the cut, offering conflicting information on the current production.

Chairman Stanley Ng’ombe said production is still low and, therefore, there was no justification to cut prices as farmers grapple with high costs.

“We are now at the mercy of the processors. We do not understand why processors had to cut the producer price when our co-operatives are operating below installed capacities,” said Mr Ng’ombe.

He wants the Agriculture Secretary Mwangi Kiunjuri to intervene and protect farmers.

Director of Livestock Julius Kiptarus, however, said: “We have witnessed an increase in production of late and I want to believe that Brookside and New KCC might have based their decision on this.”

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