Drought Pushes Up Milk Prices

[Photo: Business Daily]

The Kenya Dairy Board (KDB) says a shortage of milk caused by drought has pushed up the retail price of the commodity across the country.

“The shortage is due to drought but the expected rains will reverse the trend,” said KDB managing director Margret Kibogy.

All leading processors have adjusted their prices by between 2 shillings and 5 shillings for a 500ml packet of fresh and long-life brands.

The packet of fresh milk is now 53 shillings from 50 shillings for the New KCC brands, and 52 shillings from 48 shillings for Ilara, while the long-life brands are retailing at 55 shillings in supermarkets.

Shopkeepers are selling long-life milk for 60 shillings from 55 shillings.

However, Livestock Principal Secretary Harry Kimtai says it is likely that the price has risen on the back of a decline in production caused by drought in the current quarter.

The situation is expected to worsen as processors do not have stocks of powdered milk, which are normally reconstituted into fresh milk when there is a shortage in the country in order to tame high prices.

Data from the Kenya National Bureau of Statistics shows that the sector recorded an intake of 802 million litres of milk in 2021, against 684 million that was realized in 2020.

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