Farmers take New KCC to task over milk prices

By Vitalis Kimutai

Uasin Gishu County

Dairy farmers in the North Rift region have accused the New Kenya Cooperative Creameries (KCC) of breaking existing contracts by lowering prices of raw milk without their consent.

The farmers from Uasin Gishu, Nandi, Trans Nzoia and Elgeyo Marakwet counties demanded that the KCC management revise the prices upwards in line with the contracts they signed with them.

Dr Samson Mutai, the chairman of the North Rift Dairy Farmers Consultative Forum said at a meeting in Eldoret town they were considering suing KCC for breach of contract.

"They have lowered the milk prices from Sh26 to Sh23 a litre without the consent of the farmers. It is illegal since there is an existing contract, which the farmers have abided by," said Mutai.

Claims denied

The farmers claimed the prices had been reduced in the past three weeks and want the move rescinded.

"How can the prices be lowered when there is a dry spell in the country resulting in reduced supplies?" they asked.

The farmers said reduction in milk prices could only be possible during heavy rains when there is a glut in the market.

But the New KCC Corporate Affairs Manager Gladys Some said the new milk prices were dictated by forces of demand and supply.

She denied that the prices had been reduced for contracted farmers saying the changes affected only those who have not signed contracts with the New KCC.

The 100 large and small-scale dairy farmers who accompanied Mutai presented their complaints to Kenya Dairy Board Director Alice Chesire, who promised to take up the matter with senior managers at KCC.

Ms Chesire said the farmers were not happy with the alleged breach of the contracts since it set a bad example in the dairy sector.

Private players

"Small scale farmers, who form the bulk of the suppliers, are threatening to give their milk to private players in the industry who are offering better prices," said Chesire.

She said farmers did not want to incur losses and that the issues they have raised should be addressed of urgently and urged the company to consult the farmers over issues likely to affect them for smooth operations of the dairy sector.

The farmers also accused KCC of delaying to release their payments.

This, they said, had made them incur losses, which hamper their operations. But Ms Some said 70 per cent of the milk suppliers had been paid while the rest will get their dues by Tuesday next week.