Relief for consumers as milk prices stabilise on higher supply

Milk production rose by 6.78 per cent in the 10 months to October compared with a similar period last year, coming as a relief to consumers.

Ministry of Agriculture says the volume of milk rose from 484.3 million litres last year to 517.6 million this year. However, there was a decline in production between July and October, which the ministry attributed to the cold season. However, this was offset by high production in the first half of the year.

“There was a decline in the months of July to September, with a slight increase in October. The decline is attributed to the cold season,” said Agriculture ministry Chief Administrative Secretary Andrew Tuimur.

The bulk of the milk was produced between March and June on favourable weather. New KCC managing director Nixon Sigey said the consumer price of milk will remain at current levels until January because of the increase in production.

Mr Sigey said New KCC had witnessed 20 per cen production growth in recent months.

The price of milk has remained low for the last one year, at an average of Sh50 for a 500ml packet, after hitting a high of Sh60 in April 2017. The move prompted the government to intervene, allowing processors to import duty-free powder milk to ease the shortage.

Kenya has an annual processing capacity of 1.4 billion litres, which translates to 3.9 million litres a day.

However, processors do not operate optimally as some milk is diverted to the informal sector.