KDB managing director Margaret Kibogy said once adopted, it will help farmers get rid of costly transporters, and thus get more share of the producer price paid by processors.
Traditionally, transporters collect raw milk from farmers and market the same to various outlets only for farmers to be paid at a set price minus Sh3 a litre as transport fee.
This sees transporters bargain for better prices but retain low prices for farmers.
Agriculture secretary Peter Munya emphasised the need for farmers to form self-help groups that can directly negotiate for better prices from processors.
Brokers and milk transporters who profiteer from dairy farmers’ sweat could soon be out of business under a proposed Kenya Dairy Board (KDB) plan that will see farmers invest in dairy infrastructure and directly engage processors.
KDB managing director Margaret Kibogy said once adopted, it will help farmers get rid of costly transporters, and thus get more share of the producer price paid by processors.
“A co-operative mode will enable Kenya to modernise its dairy sector where farmers will be compelled to sell milk via dairy societies that also become channels for quality monitoring, credit access as well as dairy husbandry training,” she said.
Traditionally, transporters collect raw milk from farmers and market the same to various outlets only for farmers to be paid at a set price minus Sh3 a litre as transport fee. This sees transporters bargain for better prices but retain low prices for farmers.
Agriculture secretary Peter Munya emphasised the need for farmers to form self-help groups that can directly negotiate for better prices from processors.
Since January, he said, the ministry has spent Sh2.2 billion to buy 350 milk coolers each with a 3,000- litre capacity for distribution to farmer groups that produce at least 500 litres a day. The coolers are meant to reduce milk losses and improving the quality of milk reaching the market.
With deliveries falling from 63.4 million litres in January to 40.2 million litres in June due to apathy among dairy farmers, Mr Munya directed New KCC to release milk powder reserves to processors for processing fresh milk to help stabilise prices.
“Kenya has also invested in a milk quality testing laboratory that will affirm the quality of milk products in the market. This will boost confidence among international farmers opening markets for locally processed products,” he said.
Ms Kibogy said surveillance will be enhanced to help reduce influx of imported milk products from outside the East Africa Community.
Milk deliveries dropped by 8.24 million litres in the first half of 2020 compared to a similar period last year when processors received 319.1 million litres.
Covid-19, reported in Kenya mid-March, continued to adversely affect the sub-sector with June registering 40.25 million litres, being the lowest since March 2017 when 38.64 million litres were delivered.
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