Milk ready for transportation at Mogotio Farmers Cooperative Farmers Society on March 11, 2020. [Kipsang Joseph/Standard]
Dairy groups and smallholder farmers contracted to Brookside Dairy will benefit from a major boost after the processor announced an increase in the farm-gate price of milk, coming on the back of disruptions in the value chain occasioned by the Covid-19 pandemic.
In the new rates effective September 1, Brookside will pay 17 per cent more for a litre of raw milk, as the processor seeks to consolidate its lead in the country’s raw milk market.
The new price will benefit more than 160,000 smallholder farmers across the country, who deliver to ="https://www.standardmedia.co.ke/farmkenya/article/2001293273/after-years-of-loss-making-brookside-hands-lifeline-to-dairy-keepers">Brookside .
The rising farm gate price is also a welcome relief to farmers hit by the effects of the Coronavirus pandemic, which has seen a drop in supplies made to processors, thereby reducing incomes of smallholder farmers.
Data from industry regulator the Kenya Dairy Board indicates there has been a drop of up to 36 per cent in milk deliveries from farmers between the months of March and June this year.
“The price review has been necessitated by a change in the prevailing market conditions,” in a statement.
“Farmers should also take advantage of this price incentive to improve the management of their dairy herds, including vaccinating the animals against the deadly Foot and Mouth Disease and Lumpy Skin Disease, among others,” said John Gethi, Brookside Milk Procurement and Manufacturing director.
The new price is a major incentive to ="https://www.standardmedia.co.ke/farmkenya/article/2001314966/brookside-partners-with-co-operative-bank">dairy “We are calling on our farmers to use the additional income for enhanced feeding of their animals. They also need to prioritise the ever-important overall health of their animals for increased production,” Gethi said.
Farmers need to invest in farm-grown fodder, which can be conserved for use during seasons of depressed rainfall, he added.
This is the third time this year that Brookside has adjusted raw milk supply prices for its farmers as it seeks to further increase its share of marketed brands, on the back of rising demand for dairy products.
The processor, which has an installed daily processing capacity of over 1.5 million litres, has the largest raw milk collection footprint in the country, with more than 80 cooling centres spread across several counties in major milk production sheds.
Gethi reiterated that the enhanced buying rate was a show of commitment by the company to the strong partnership with its farmers, a majority of whom are smallholders.
“Our promise is the guaranteed payment for all the raw milk supplied to us, whilst procuring 100 per cent of all contract volumes from our suppliers, in both difficult and good times."
