Milk prices in Kenya: Dairy farmers in Kenya are suffering as milk processors mint millions from the sale of milk.
In the latest blow on farmers, processors have now reduced the price of raw milk to Sh. 25 per litre. Ironically, they have been hiking prices of milk to consumers. The prices of milk from processors have now risen to as high as Sh. 110.
“A visit to a number of supermarkets across the country shows that a litre of milk is retailing at between Sh. 100 to Sh. 110, or Sh. 50 to Sh. 55 for half a litre. At between Sh. 100 and Sh. 110 a litre, processors have exaggerated the selling price by over 400 per cent to protect their profits. Brookside is the most expensive brand in the market, with most retailers selling half-a-litre at Sh. 55. Other brands such as KCC, Tuzo and Fresha are selling at Sh. 50 for half-a-litre. Daima and Lato are some of the cheapest brands, selling from Sh. 45-Sh47 for a half-litre packet. The 500ml packet is the most preferred size in the market,” says a report that was published in the Daily Nation.
The report further says that “though there are other costs associated with milk business, among them transport, storage, processing, packaging and distribution, the huge disparity between what they pay farmers and what the consumers are charged is unrivalled by any other food product processed locally.”
The report adds that Brookside and New KCC are paying milk producers between Sh. 27 and Sh. 31 per litre, depending on the volumes supplied.
“Brookside will now pay Sh. 27 per litre to a farmer supplying between a litre and 100 litres, Sh. 28 for between 1,001-2,500 litres and Sh. 31 for 5,001 litres and above. New KCC is paying between Sh. 27 and Sh. 30 a litre,” says the report.