A farmer milks a cow. New KCC is buying raw milk at Sh32 per litre. Photo/FILE
What you need to know:
New KCC is buying raw milk at Sh32 per litre from Sh40 while Brookside will from Tuesday lower its price to Sh30 from the current Sh35 and Sh40 in February.
The firm’s managing director, Kipkirui Langat, said unsold stocks delayed payment set for the 10th of every month and pushed it 10 days ahead.
New Kenya Co-operative Creameries (New KCC) has followed Brookside Dairy in lowering farm gate price of milk and is delaying payment to farmers on unsold stocks.
The State-owned processor is buying raw milk at Sh32 per litre from Sh40 while Brookside will from Tuesday lower its price to Sh30 from the current Sh35 and Sh40 in February.
The firm’s managing director, Kipkirui Langat, said unsold stocks delayed payment set for the 10th of every month and pushed it 10 days ahead.
“The huge stocks of long life products that we are holding have put us under pressure from our suppliers,” said Dr Langat, adding that it has stocks worth Sh800 million.
The rains have improved forage and subsequently milk production which the processors hope will cushion farmers’ earnings following the cut on farm gate prices.
But the processors did not mention plans to cut retail price of processed milk, which has remained at Sh45 for 500ml in top retail outlets.
“Any increase from what we are receiving now will definitely lead to a milk glut ,” Dr Langat said.
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