August 29, 2007

Kenya's KCC faces milk shortage as market demand soars

The New Kenya Cooperative Creameries (KCC) will need an extra 200,000 litres of milk to satisfy its local and international markets.

The cooperative currently receives 300,000 litres a day from farmers which is still insufficient, according to KCC chairman Matu Wamae.

Wamae is calling dairy farmers to increase production to secure their consumers' demand.

He said that KCC had increased producer milk prices from KES18 (US$0.26) to KES20 (US$0.29), to motivate people to venture into the dairy farming.

KCC has already secured a major market for milk products in Middle East is currently in talks with several countries in West and North Africa for more markets.

KCC has also gathered an order of 2.2 million kilograms of milk in the Republic of Yemen, where it will start making deliveries this week.

The creamery will also supply the Yemen Dairy 216 tonnes of powdered milk for the next three months. Last month, KCC exported 50 million kilograms of milk in two consignments for the dairy.

Wamae said starting next month, KCC needs at least 500,000 litres of milk daily to satisfy its local and international markets.

He, however, said problems abound such as poor roads which unable farmers to transport the commodity immediately to the processors.