January 23, 2013

Kenya has seen rising milk prices due to low supplies from dairy farmers especially in the North Rift region, according to processors and traders.

"Milk prices are responding to the usual market forces of demand and supply. Currently, we are meeting our market requirements, but if current trends continue, demand may soon outstrip supply," said Brookside Dairy's general manager, John Gethi.

Kenya Dairy Traders national administrator, Alex Gathii, said the dry spell has started and may run up to April thereby affecting milk production.

"In North Rift, farmers are shifting from dairy farming to normal farming. So there is a little problem with production there even though in Central region the supply is normal," said Gathii.

New KCC chairman, Matu Wamae, added that the latest increase was due to high demand as well as high cost of inputs that has forced processing firms to pay farmers more for their supplies to ensure they keep on with the production.