New KCC upgrades long-life milk plants to cash in on market glut
A New KCC worker inspects milk quality at the firm’s Kiganjo plant in Nyeri. PHOTO | FILE
What you need to know:
New KCC is upgrading the Eldoret and Kiganjo plants to accommodate more milk for the long-life products including powder milk and the UHT milk.
The milk volumes at the state-owned firm are expected to double in the coming days due to the ongoing rains in major milk producing zones.
The firm relies on long-life products to boost its income. The processor earns Sh400 million annually from the export of these products.
New KCC is upgrading its milk dryers ahead of the expected glut to convert deliveries into powder and other long life products for domestic and export market.
The milk volumes at the state-owned firm are expected to double in the coming days due to the ongoing rains in major milk producing zones, which has led to improved forage in the fields.
Managing director Nixon Sigey said the firm is upgrading the Eldoret and Kiganjo plants to accommodate more milk for the long-life products including powder milk and the UHT milk.
“We anticipate that our milk intake is likely to double following the rains that are pounding most parts of the country, as a result, we are upgrading our Eldoret and Kiganjo plants to cater for the long-life products by increasing their capacities,” said Mr Sigey.
At Eldoret, the firm is expanding the plant by installing a Sh70 million facility for production of UHT milk to accommodate the additional milk.
The Treasury has also allocated Sh400 million to the New KCC in the financial year to set up an instant powder milk plant in the North Rift town. New KCC plans to export milk to Qatar and Dubai.
The firm relies on long-life products to boost its income. The processor earns Sh400 million annually from the export of these products.
In August, the New KCC said it was building up stocks before starting exports of the long-life products to the Middle East. New KCC already exports its long-life products to Uganda, Tanzania and South Sudan.
Low intake early in the year saw the processor cut back production of ghee, cheese and butter by 20 per cent amidst unfavourable weather. The processing of these products has resumed fully following the increase in volumes.
Mr Sigey, who is also the chairman of the Kenya Dairy Processors Association, said no milk would go to waste this year, as was the case in 2010 when thousands of litres of the commodity was disposed of due to limited capacity.
He said the processors have so far increased production capacity to more than 3.5 million litres, which is more than enough to handle the increase in volumes. Currently, all the milk processors handle about 1.5 million litres daily.
“This year no milk will go to waste because processors have increased their capacities and they are in a position to handle all the volumes that farmers will supply,” he said.
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