Brookside processor has cut the price of raw milk by Sh5 in a span of three weeks to the detriment of producers grappling with high costs following an increase in the price of animal feeds.
The processor has reduced the price by Sh2 in the latest review, just a week after it cut the same by Sh3 on August 5.
“Dear supplier, kindly note raw milk prices have further been reviewed downwards by Sh2 per kilo effective 16/08/2019,” the the Kenyatta family-linked dairy wrote cooperative societies.
This means the processor will pay Sh25 a litre to farmers supplying between one litre and 100 litres, Sh26 for those delivering between 1001 litres and 2,500 litres and Sh29 for suppliers offering 5,001 litres and above.
The move has been condemned by the Kenya Dairy Farmers Federation, which has accused the processor of cutting the price when farmers are paying a steep price for inputs.
“If the current shelf milk price is at Sh120 per litre, what we expect the farmer to get is Sh41 while the cooperative/bulking centres should be getting Sh47,” said Stanley Ng’ombe, chairman of the association.
Mr Ng’ombe said the current glut is a result of inflows from neighbouring countries.
“Whereas we understand there are regional trade treaties that allow free trade, we know that powder milk is reconstituted in a neighbouring country and ferried to Kenya, leading to a milk glut,” he said.
The federation says it supports the Kenya Dairy Board’s proposal that milk be bought based on quality and not weight.
The farmers blamed the high cost of production on exorbitant animal feeds.
“As a result of the drought in the early part of the year many farmers lost dairy animals and need support rather than discouragement,” said the chairman.