The New Kenya Cooperative Creameries (New KCC) has lost its position as Kenya’s second-biggest dairy by market share to Githunguri Dairy Farmers Cooperative, processor of the Fresha milk brand.
Kenya Dairy Board data (KDB) for the first half of the year to June shows Brookside Dairy is still Kenya’s biggest milk processor by market share, but the top three companies are increasingly ceding their market dominance to smaller firms which together now control 31 per cent of the pie.
The KDB statistics indicate that New KCC now controls 15 per cent of the raw milk market, losing out to Githunguri that commands 16 per cent of the commodity.
The State-owned New KCC has shed five percentage points of the market share that it commanded last year, dropping to position three, while Githuguri gained four percentage points rising to the second position after market leader Brookside.
New KCC controlled 20 per cent of the raw milk market last year, while Githunguri had 15 per cent.
“There has been increased competition from the emerging processors that has eaten into the market share of the big players, reducing their ration,” said Mr Humphrey Maina, acting managing director of KDB.
The farmers-owned Githunguri Cooperative is the only milk processor that has maintained growth of its market share in the past three years, according to KDB.
Brookside’s market share has dipped in the past six months to 38 per cent from 41 per cent last year.
Brookside Dairy has had control of the raw milk market since it went into an acquisition spree to increase its presence in the market.
Buzeki Dairy, which Brookside acquired last year, was fourth in a series of takeovers that the processor has completed in the past seven years starting with Ilara in 2007, Delamere and SpinKnit (makers of the Tuzo milk brand).
KDB statistics indicate that the share of emerging firms has grown from 24 per cent in 2014 to 31 per cent this year.
The small processors have, however, been eating into the market of the established milk firms.