Commodity Watch

A Carton Of Milk Now Costs More Than 600 Shillings

BY Lynnet Okumu · May 31, 2022 11:05 am

KEY POINTS

Kenya is among countries in Africa that consume a lot of milk going at 120 liters per person per capita while neighboring countries like Uganda are at 60 liters per liter per capita.

KEY TAKEAWAYS

The data further shows that milk production in the country has dropped by about 15 percent and the country requires about 74 million liters monthly to meet the high demand.

A spot-check by Soko Directory at various shopping outlets shows a carton of 12 packets of Daima Fino Milk 500Ml is selling at 744 shillings while Tuzo Long Life Milk 200ml of 21 Packets Carton is trading at 600 shillings. KCC Gold Crown Long Life Milk 500Ml of 12 packets Carton is 735 shillings.

The 500Ml packet for different brands across the major shop outlets is retailing at between 55-70 shillings, an increase from between 45-50 shillings in January 2022.

This is the fastest rising pace in decades, creating a cost-of-living crisis that’s forcing Kenyans to make tough choices about what to buy.

However, farm gate prices of milk have increased from an average of 35 -40 shillings to the current price of between 45-50 shillings per liter due to Low supply and high demand for the commodity.

In parts of Nairobi, a 1.5-liter tin of powder milk is selling at between 2,000 to 2,300 shillings while latto milk from Uganda is selling at 950 shillings per carton.

According to a report from the Kenya Dairy Board, annual milk production in the country is 5.28 billion per liters, and milk marketed in the formal sector is at 800 million liters per year.

The data further shows that milk production in the country has dropped by about 15 percent and the country requires about 74 million liters monthly to meet the high demand.

The decrease which has created a shortage and hiked prices of the commodity is attributed to the poor rains experienced in the October-November-December 2021 short rainy season and the current drought being experienced in more than 23 counties.

As of now, a dairy animal that was producing about 20 liters of milk per day produces only 12 liters.

Kenya is among countries in Africa that consume a lot of milk going at 120 liters per person per capita while neighboring countries like Uganda are at 60 liters per liter per capita.

Farmers are now hopeful that with the onset of rain, the foliage will start recovering thus a quick recovery for the whole sector to cut the increasing cost that is choking consumers.

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