KDB managing director Margaret Kibogy says the board will be meeting next month to review the situation and come up with intervention measures to avoid last-minute decisions.
Processors have no stocks of powdered milk after they exhausted inventories during the shortage that hit the country between January and May this year.
Processors normally reconstitute powder into fresh milk to meet the demand in times of deficit.
Kenya Dairy Board (KDB) has warned that milk prices will rise from January following poor production this year and depletion of powder milk.
KDB managing director Margaret Kibogy says the board will be meeting next month to review the situation and come up with intervention measures to avoid last-minute decisions.
Processors have no stocks of powdered milk after they exhausted inventories during the shortage that hit the country between January and May this year.
“If there is a severe drought in January, Kenya will be in a crisis given that currently we do not have stocks of powdered milk that normally come in handy in times of shortages,” said Ms Kibogy.
The weatherman has indicated that rains in the production zone of North Rift will cease from the second week of December in his October-November-December forecast.
Processors are currently not converting milk to powder as there is no excess supplies from farms. The dairy sector only realised a production increase of 15 per cent after the rains started last April.
The Treasury waived duty on imported powder milk last May to allow processors ship in 9,000 tonnes but so far they have only brought in half of it forcing the government to extend the window that was set to expire last month to December 31.
Processors normally reconstitute powder into fresh milk to meet the demand in times of deficit. The Sh1.2 billion stocks of powdered milk that factories were holding run out in three months.
Kenya has been facing a shortage of milk since January following a dry spell that hit the country since late last year.
Milk prices had shot to an all-time high following prolonged drought from December 2016 to May 2017, one of the longest dry spells recorded in the recent past. Processors reduced the price in May following a marginal increase in production.
The drop saw the price of a half-litre packet of Ilara reduce to Sh55 from Sh65, Tuzo Fresh to Sh52 from Sh62 and Molo fresh to Sh50 from Sh60 with KCC fresh selling at Sh50 down from Sh60 at major retail outlets.
It is these reductions that the board fear will be reversed.
