Increased Milk Prices Driven by the Ongoing Dry Spell Across Kenya

The country is experiencing drought that has been predicted to continue until April.  The dry season has led to shortage of water for farmers who practice cattle farming, which in turn has led to a decrease in the production of milk across the country.

Cattle depend on water and grass for enough milk to be produced but that has not been the case in the past few months. Production material is currently high and this has forced the shelf price a packet of milk too to go up thus affecting Kenyan households. The price of milk across all the brands has registered an increase of between 3 shillings and 5 shillings depending on the variety.

A 500ml long life milk packet that has been selling at 50 shillings is now going at 55 shillings while fresh milk that used to retail at 43 shillings is now selling at 48 shillings across all the major supermarkets. Increased cost of the commodity comes after processors raised producers’ price by 3 shillings last week.

According to processors, the increase is meant to cover the cost incurred by farmers due to lack of pastures in the fields that has so far cut down on fodder. Maize, an important part of animal feeds, has also been in short supply.

“The current weather has seen a drop-in milk supplies of between 20 to 30 percent and it will only be good that we increase the price to farmers to cushion their earnings,” New KCC managing director Nixon Sigey said.

On average, different brands of animal feeds have gone up by between 50 shillings and 70 shillings for a 70-kilogram pack depending on the manufacturer.

Milk supply to the processors has been on the rise since September 2015, maintaining the same trend the whole of last year, helping maintain low consumer prices.

Mr Sigey said the processor is working with extension officers to train farmers on animal feeds preservation to maintain the current supplies.

The State has set aside 1.5 billion shillings as loan for livestock traders for purchase of animals in 23 countries hit by drought. The cash will be disbursed via the Agricultural Finance Corporation (AFC) at a negotiated rate. According to Kenya Dairy Board, the formal market controls 30 percent of the total milk production while the informal one commands the balance 70 percent.

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