New KCC plant closure deals blow to dairy farmers

Dairy farmers in the North Rift are incurring huge losses due to lack of market following the closure of some New Kenya Cooperative Creameries (New KCC) plants for maintenance.

Hawkers have taken advantage of the situation and reduced the price of milk subjecting farmers to losses.

The hawkers are offering Sh18 per litre, which the farmers term as too low as compared to Sh23 offered by New KCC and private creameries.

“We have no otherwise but to sell the produce at throw away prices since there is increased production following the recent heavy rains,” said Joel Too of Nandi district. “It is unfair for the company to close down the plants for servicing at a time of high milk production. The exercise should be done during the dry spell when production is low to save us from incurring such heavy losses,” said farmer Richard Kipkosgei of Moiben. Milk delivery to New KCC has doubled in the recent past resulting in a reduction in producer prices.

The daily supply increased from 300,000 litres to 558,000 in the past one month due to high production following the heavy rains, according to New KCC corporate affairs manager Jane Mbuthia.

“Impassable roads due to heavy rains forced the company to incur extra costs in collecting milk from farms,” added Ms Mbuthia.

But dairy farmers said lack of market for the produce was subjecting them to losses considering the high cost of animal feeds. “It is a total loss. We have nowhere to sell our produce while we need to meet the high cost  of fodder and other expenses thus rendering dairy farming a non-profit making venture,” said Jackson Malakwen from Keiyo district.

Exploit market

Milk delivery to Lessos has exceeded the plant’s handling capacity of 20,000 litres following an increase in supply to 32,000 litres. Deliveries to Kapsabet plant increased to 40,000 litres against capacity of 27,000 litres. Consequently, the farmers have urged New KCC to consider reopening and expanding its plants to accommodate the excess milk.

“The firm should exploit the export market in the Great Lakes region and the Middle East instead on depending on the local market,” said Susan Chelagat from Nandi North district.