Milk processors have been pushing the government to allow imports of animal feeds and subsidise inputs to cut production costs.
Consumers are now buying a 500ml packet of milk at Sh60 from Sh55 previously for long life and Sh55 for fresh milk following the new adjustment by processors.
The Kenya Dairy Board (KDB) has ruled out the importation of milk to ease pressure on consumer prices, citing sufficient stocks to last up to four months.
Managing director Margret Kibogy said the country has sufficient stocks of powder milk in the strategic reserve to supplement fresh stocks from the farms.
“Importation is not one of the interventions that we can take at the moment as we still have some stocks in the strategic food reserve,” she said, adding that milk production increased by 20 percent to 76 million litres in September as milk-producing counties received adequate short rains.
Milk processors have been pushing the government to allow imports of animal feeds and subsidise inputs to cut production costs.
New Kenya Cooperative Creameries managing director Nixon Sigey said whereas the price paid to farmers increased in March last year, the cost to consumers remained the same.
“Farmers prices increased from Sh33 in March 2020 to Sh45 currently. For a long time, consumer prices remained at Sh45-Sh50 per packet depending on the brand,” said Mr Sigey, who is also the chairperson of Kenya Dairy Processors.
Consumers are now buying a 500ml packet of milk at Sh60 from Sh55 previously for long life and Sh55 for fresh milk following the new adjustment by processors.
Processors increased the producer price of raw milk by more than double since March last year, following a decline in supply.
Brookside is paying 17 percent more for a litre of raw milk, which pushed the cost to over Sh40 for a chilled commodity delivered at the firm in Ruiru.
On the other hand, New KCC increased its price to Sh44 for the same quantity.
Milk production declined marginally in 2020 compared with the previous year occasioned by a lack of enough pastures in the field.
