Kenyan dairy processors stuck with Sh2 billion of surplus milk stock

By NICHOLAS WAITATHU

NAIROBI, KENYA: Dairy processors are stuck with milk stock worth over Sh2 billion in their premises, a situation they say has contributed to payment of low prices to the farmers.

Kenya Dairy Board (KDB) yesterday stated that the processors are grappling with high volumes of milk since the onset of long rains.

Managing director Machira Gichohi confirmed that milk farmers in the country are currently collecting on average 45 million litres per month. 

In January and February the processers recorded highest collection of 54 million litres and 47 million litres. 

The processors, he said, are collecting more milk from farmers in Rift Valley, Central Kenya, and Meru regions.

Investigations by our team has revealed that major dairy firms are collecting more than 100,000 litres per day up from 70,000 litres before December last year.

ONSET OF RAINFALL

Gichohi, who was addressing the media in his Upper Hill office, pointed out that the situation has been instigated by rainfall being experienced in various parts of the country since the beginning of the year.

He said the dairy processors are struggling to offload the milk stock they converted into powder and long life thus contributing high supply in the market and thus affecting farmers’ prices. 

Explaining why farmers will continue to experience low prices for their produce, Gichohi stated that the dairy processors boosted their milk stocks in November and December last year after reports by the Metrological Department indicated the country would experience dry period especially early this year.

“Instead the country received near normal rainfall, which equally contributed to farmers producing more milk. Current production together with the last year boost stocks has caused the prices to decline,” said Gichohi.