advertisement
Commodities

Chilly season to keep retail milk prices high on low production

Margret Kibogy
Kenya Dairy Board managing director Margret Kibogy. FILE PHOTO | NMG 

Consumers are unlikely to soon get a reprieve from the high cost of milk with the shortage expected to persist through July, the sector regulator has said.

Kenya Dairy Board (KDB) managing director Margret Kibogy said production is expected to remain low this month as the country ushers in the coldest month of the year.

Extreme weather conditions affect milk production.

“We expect that the current prices will persist because of the scarcity that has been there following the drought season witnessed in the first quarter of the year. Subsequently, production will remain low up to July because of the current cold season,” said Ms Kibogy.

Processors have increased consumer price of long-life milk by Sh5 for a 500ml packet, citing the shortage of the commodity.

advertisement
 

This marks the first time the price of the commodity has hit Sh55 in the last two years. The milk prices hit a historic high of Sh60 in 2017.

Powdered milk

Ms Kibogy said the supply in the market at the moment has been consistent because of the powdered milk that processors have been reconstituting into a fresh product.

Milk intake in the formal market dropped by nine million litres between January and March due to extreme drought early in the year.

Data from the KDB show milk delivery to processors declined to 45 million kilogrammes in January from 54 million kilogrammes last month as the industry grappled with the effects of prolonged drought.

The country has been facing a dry spell after the short rains failed in October last year, affecting fodder production.

advertisement