Retail milk prices rise by 11pc as supply shrinks

A 500ml packet is retailing at Sh48 in major supermarkets. PHOTO | FILE

What you need to know:

  • The prices have risen to Sh50 for a 500ml packet up from Sh45 at the beginning of the year in small shops.

Processed milk prices have risen by up to Sh5 for half-litre packet on shortage caused by harsh weather conditions.

The prices have risen to Sh50 for a 500ml packet up from Sh45 at the beginning of the year in small shops. The same is retailing at Sh48 in major supermarkets with milk processors forced to increase farmers’ pay to secure raw supply.

“It is because of the dry spell. We have not had proper strategic planning in the formal sector on who would absorb (and powder) the excess during peak seasons for use in such low seasons,” said John Wachira, the national secretary of Dairy Traders Association.

He, however, noted the price increment should be minimal as the cost of transport had gone down with a drop in fuel prices and improved road network.

The two largest processors in the country, Brookside and New KCC, process milk powder, increasing uptake capacity during high seasons.

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