• Githunguro Diary buying milk from farmers at Sh37, with Brookside, Meru Dairy Cooperative and Muranga County Creameries buying at Sh35 while New KCC is buying at Sh33.
Brookside has increased the producer price for a litre of milk to Sh35, a Sh7 increase.
This is Sh2 higher than the Sh33 its competitor New KCC is offering farmers. Previously, the two leading milk processing companies were buying milk from farmers at between Sh20 and Sh28.
Githunguri Diary is offering the highest prices at Sh37, followed by Brookside, Meru Dairy Cooperative and Muranga County Creameries at Sh35 each while New KCC is buying at Sh33.
In January 15, agriculture cabinet secretary Peter Munya directed state owned New KCC to pay Sh 33 per kilo for its farmers.
Munya said this was in line with President Uhuru Kenyatta's intention of boost the dairy industry.
“Following the President's directive, I have authorised New KCC to immediately start buying milk from farmers at Sh33 per litre. The milk will be processed into powder for strategic food reserve as well as for use by GoK agencies & as relief food. GoK agencies will only buy local milk," Munya said.
While accompanying Uhuru in Mwea, Kirinyaga County on Saturday, Munya said he will be keen to follow up on the directive to ensure farmers benefit.
Margaret Kibogy, Kenya Dairy Board managing director said they have been able to stabilise milk prices in the country and farmers should ensure they increase production.
“Farmers were getting between Sh20 to Sh28 for a litre of milk at the farm gate but it has since gone up to over Sh30. As a regulator, we will monitor to ensure that this is in force,” she said on phone.
John Gethi, Brookside’s director of milk procurement and manufacturing said the new rates that are effective from mid-January, will see the firm’s raw milk suppliers earn up to Sh 35 for every kilo of raw milk supplied.
In a statement released yesterday in Nakuru, Gethi said the move comes as the firm seeks to consolidate its 40 per cent leadership in the country’s milk market.
“The new prices are an incentive to our farmers to invest in climate smart dairy practices, such as establishment of fodder crops and pasture grasses during what appears to be an extended rainfall season,” Gethi said.
He said investment in fodder production would address the challenge of seasonality by ensuring consistency in milk production across all seasons.
“With the enhanced producer prices, we are urging all farmers to redouble their efforts towards sustainable farming by being deliberate in the planning for the cheaper option of farm produced animal feeds,” he added.
He said Brookside has an installed processing capacity of 1.5 million litres of milk per day, operating over 60 raw milk cooling stations spread in 27 milk producing counties.
“We call on our farmers to increase milk production in order to further benefit from this opportunity with the new price adjustment, which will also enhance their annual reward payout,” Gethi said.