Milk Prices to Remain High as the Country Awaits Imports

By Vera Shawiza,

The Kenya Dairy Board (KDB) has disclosed that milk prices across the country might remain high for a little bit longer than expected.

This comes along as the production of milk in the country is still low due to inadequate rainfall, therefore, leading to low production. Just the other day, milk prices were reduced by 10 shillings, where a packet of a half litre which was going at 65 shillings came down to 55 shillings and households were positive that the prices will reduce even further, which seems not to be the case.

According to the Managing Director of KDB, Margaret Kibogy, there has been a 20 percent production growth in the Rift Valley region where farmers majorly practice free-range farming dependent on rain-fed forage. The region had suffered a sharp decline in production due to drought.

“There has been an increase of 20 per cent in production and this is not sufficient to lower the consumer prices below the current cost,” said Kibogy.

She added that they are expecting that powdered milk imports which will be received at the end of June will help cut down on the high prices which in turn will also help maintain the local production.

Kibogy noted that milk processors, who are supposed to import the powdered milk are currently going through the quotations received from different countries before the importation kicks off.

“I have talked with the processors and they say they are going through different quotations that they have received from different markets and they expect the first lot of imports at the end of the month,” she said.

Major dairy processors announced price reductions last month, attributing it to increase in raw milk. The volume of milk collected by processors fell by 36 percent from 56.44 million litres in October 2016 to 36.11 million litres in February.