Brookside has increased its price of raw milk bought from farmers by 13 percent to a record 42 shillings per liter to boost its intake amid a shortage.
The costly farm prices have increased retail milk prices with the half litre packet retailing now at 55 shillings from 50 shillings at the start of the year.
The current business environment has pushed up shelf prices of commodities and products, so it does to our products. This has led to the decision to pass on the benefits of the increase to the farmers during this exceptional period. These are the words of John Gethi the Brookside general manager in charge of milk procurement.
The government last month declared drought a national disaster which led to call for aid to counter the dry season that poses a major risk to people, livestock and world life.
According to the Red Cross an estimate of 2.7 million people are in need of food aid which was made worse by low rainfall in the month of October and November.
The shortage experienced in the commodity has seen consumer prices of milk rise for the first time in months.
Brookside currently commands 44 percent of the market shares compared to the New KCC who are at 20 percent in the recent months have set trends in the market leading to its review on the farm retail prices.
In the last month, Brookside increased the prices of buying raw milk by 2 shillings a litre which concurrently increased the returns farmers get from their produce to 7 shillings.
The shortage comes amid expansion plans by the processors, deepening price wars as firms seek to defend and grow their market shares. The increase in the retail farm prices of raw milk have seen the farmers hopes high on getting better returns in the upcoming months.
Written by Amina Martha.