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Market News

A worker at a New KCC factory. FILE PHOTO | NMG 

The scramble for raw milk among processors and good weather has seen production rise to 301 million litres in the past seven months.

The latest Kenya National Bureau of Statistics (KNBS) data show the improved producer prices with a litre of milk going for Sh30 up from Sh22 resulted in the 10 per cent rise from last year’s 273.21 million litres.

Introduction of school milk programme as well as the sale of dairy products locally, in the Middle East, East and Central Africa have fuelled growth in demand, making processors to collaborate with dairy societies to boost local production.

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Last year, Brookside Dairy Ltd launched a nationwide farmer-to-farmer fodder production programme where demo farms were established in milk-producing counties.

Last year also saw the government release Sh500 million to settle a 19-year-old milk delivery debt the New KCC owed 130,000 dairy farmers, helping to restore confidence among farmers.

County-based funds and MPs, through the National Government Constituencies Development Fund, have also boosted milk production with grants to build and equip cooling plants.

A survey in retail stores within Nairobi shows the number of dairy co-operative societies venturing into value-addition has increased with fresh milk and premium yoghurt brands being the main products, enabling farmers to earn higher prices for their milk.

Other milk processors are Ol Kalou-based Countryside Dairies, Mukurweini Farmers, Kiambaa Farmers, Githunguri dairy, Limuru Dairy, Sameer Dairy and Bio-foods, among others.



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