Cost Of Milk Reduces by Sh10

Milk processors in the country have reduced the price of milk from Sh10 for every 500ml pack.

New Kenya Co-operative Creameries (KCC) and Brookside Dairy made the announcement today reducing the prices across its fresh milk brands.

A 500ml will now cost KES50 from the current retailing prices of KES60 with effect from May, 30 2017 in the general trade and from June 1, 2017 in the super markets. 

KCC, a market leader in dairy processing noted that the price reduction is due to the gradual increase in raw milk supply that is now up by 20%.

The decision has further been informed by the National Government’s intervention, through a gazette notice, allowing importation of duty-free milk powder to help bridge the raw milk shortage.

Milk prices went up due to a prolonged drought in the country running from last year, the season caused scarcity of the product at the farm level resulting in a drastic drop by over 50 per cent of raw milk being supplied to the company’s milk collection facilities.

This affected the producer price pushing it up from KES 30 to a high of KES 43 per litre, which in turn impacted the consumer prices to rise to over KES 60 per 500ml pack of fresh milk.