New KCC invests in new plant to increase long-life milk production

New Kenya Co-operative Creameries (New KCC) is seeking to increase its production of long-life milk with investments in a new plant that will stabilise supply and support more exports.

The proposed plant will be used to blend milk with various ingredients for flavouring.

The mixture will be preserved before processing into long-life milk products.

Yesterday, the firm invited bidders to design and instal the flavoured milk plant which will increase its purchases of milk from farmers during times of glut, reducing losses and wastage.

Prices drop
A glut in 2010 saw milk prices drop from a high of Sh33 per litre to a low of Sh24 as processors were overwhelmed by increased production that exceeded storage capacity.

New KCC saw its profits dip 85 per cent to Sh77 million in 2010 from Sh498 million the previous year, prompting a strategy to invest in new infrastructure across the country.

The company, which produces the UHT long-life brand, is also seeking to increase its range of cooling facilities and stabilise its power supply with investments in refrigeration and power generators.

Milk intake in the formal sector shrugged off high prices brought about by the rising cost of power and transport to grow by 26 million liters to 449 million litres in the 10 months ended in October 2011 compared to the same period last year, shielding farmers and factories from losses.