Milk crisis blamed on oversupply, not imports

By Luke Anami

The current milk glut was not caused by excessive imports, the Kenya Dairy Board (KDB) has said.

However, the market regulator, clarified that it was due to overproduction that outstripped the processing and marketing capacity of the processors, Mrs Martha Mulwa, Chair of KDB said yesterday.

At a press conference at the Board’s offices in Nairobi, Mulwa said the onset of short rains late last year saw an upsurge of milk production leading to increased intakes by the formal sector.

"Dairy intakes by processors rose sharply from an average of 1,14 million litres in September 2009 to 1.7 million litres by January this year," Mulwa said.

Restrict intakes

As a result most of the processors were forced to restrict milk intakes by allowing only supplies from the traditional clients, she added.

She said the worst hit were farmers who had previously relied on informal traders, as the traders could not absorb the high volumes.

"The sudden upsurge in production overstretched the handling capacities of major milk processors," said Mulwa, who was flanked by some Board members who included New KCC Chairman, Matu Wamae.

She refuted claims that the importation of 863 tons of milk powder last year in order to sustain the local and export market requirements as a result of last year’s drought could have led to the current crisis.

"Imports of milk products have declined from 5.2 million kilogrammes in 2001 to 3.4 million in 2009," she explained.

"KDB will however work closely with the security and other agencies to prevent and apprehend those who may decide to illegally import milk and milk products through our porous borders," she said.

Farmers who lost revenue due to the milk glut will however not be compensated.

KDB director Machira Gichohi urged the Government to immediately avail a grant of Sh300 million to mop up excess processed milk held by processors to reduce the effects of the milk glut.

Gichohi said the Government promised to avail an additional grant in May to offload the expected accumulation of long-life milk stocks due to expected oncoming rains.

Scaled up

"The school milk programme should be up scaled to reduce the amount of fresh milk currently in the market," Gichohi said.

Wamae urged the Government to support New KCC to refurbish and commission a UHT plant in Eldoret and also offload huge stock held at the firm.

"We appeal to the Government to support the condensed milk plant in Naivasha, as well as procure, install and commission an additional milk drier," said Wamae.