Boost for farmers as Brookside raises milk prices by Sh2

The fight for control of the national raw milk market is expected to intensify after dominant sector player Brookside Dairy announced plans to pay farmers an extra Sh2 for each kilo of milk delivered.

The new farm-gate prices will see raw milk suppliers contracted by the processor receive Sh40 per kilo, the highest in the industry, up from Sh38.

Brookside’s General Manager in charge of milk procurement and extension services John Gethi said the new prices, which will become effective in two weeks’ time, from March 16, will help cushion farmers from the effects of bad weather characterised by insufficient rainfall, which depressed milk production volumes countrywide.

Price incentive

“This new price incentive is meant to help farmers recover their milk production costs, coming from a low production season. It will also enable farmers to prepare adequately to grow and conserve feeds as we approach the long rains to ensure sustained milk production through all seasons,” Gethi said in a statement to newsrooms.

The move by Brookside, which commands nearly 45 per cent of the national raw milk market is seen as a strategy to retain farmers’ loyalty and woo new suppliers.

Brookside, which has a daily peak milk intake capacity of more than 1.5 million litres has nearly 160,000 raw milk suppliers.

The processor expanded its milk intake capacity with last year’s completion of a Sh2 billion milk powder plant at its Ruiru processing hub, thereby guaranteeing farmers of a ready market for their milk.

Last week, Gethi said reduced rains coupled with a cold spell in the high altitude producer zones had shrunk raw milk volumes, leading to a market reaction that saw shelf prices rise by an average of Sh2 across major brands.