Milk price rises by Sh5 a packet

By GERALD ANDAE
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Milk processors have increased consumer price of long-life milk by Sh5 for a 500ml packet, citing shortage of the commodity in the market.

Consumers will pay Sh5 more for the half-litre packet which is currently retailing at Sh55 from Sh50.

This is the first time that the price of the commodity has hit Sh55 in the last two years.

“We have adjusted the price of long life milk because of the scarcity that we are facing,” says New KCC managing director Nixon Sigey.

He said the situation might normalise next month if the rains come. “We expect the prices to drop if the rains come on time,” he said.

Mr Sigey pointed out that milk production in the country has been affected by a prolonged dry spell, which had not been anticipated as rains were expected to start in mid-March.

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The Kenya Dairy Board (KDB) said last week the formal market had dropped five percent in the last three months as effects of dry weather continue to be felt in different parts of the country. The KDB indicates that milk to processors has declined from 56 million kilos in January to 54 million kilos in February before settling at 53 million kilos last month.

The country has been facing a prolonged drought after the short rains failed in October last year, a situation that affected fodder in the fields. But production volumes were maintained between October and December as farmers who had preserved fodder were not affected.