September 8, 2004

Kenya Set To Review Milk Prices

The Kenya Co-operative Creameries (KCC) may review milk producer prices upward depending on production levels.

The KCC Finance Committee chairman, Mr Matu Wamae, however, said the price increase as demanded by dairy farmers will only be realized if there is no upsurge in milk production.

If the short rains in October and November push up milk production, KCC will be forced to take up the surplus and will therefore not afford any price increase.

"We are only going to increase prices if milk delivered to us does not surpass the normal levels," said Wamae.

At the height of the long rains around June this year, KCC normally received 350,000 litres of milk daily, up from 150,000 litres. The increase in deliveries saw the KCC stockpile milk powder worth Sh500 millions due to lack of market.

The Kenya National Federation of Agricultural Producers (Kenfap) had recently demanded that milk prices be increased from the current price of Sh16 per kg to at least Sh25 per kg.