Milk farmers who supply KCC cry foul over falling prices of commodity

By TITUS TOO

ELDORET, KENYA: Dairy farmers in Uasin Gishu County have decried a drop in milk prices over the last three months.

A section of dairy farmers said falling prices of the produce coupled with high cost of animal feed and veterinary services had made the venture unprofitable. 

Farmers who supply their produce to the New Kenya Co-operative Creameries (NKCC) claimed the prices had dropped from Sh40 per kilogramme of milk to Sh28.

Rael Boit and Paul Tabachei, who supply milk through Lessos Livestock Breeders Network (Lelbren) to NKCC Lessos plant, said the new prices would be even lower after deductions are made.

BETTER PRICES

“We came together under the umbrella of Lelbren so that we could bargain for better prices from the creamery but now with the falling prices, we don’t expect to earn much,” said Boit.

Boit, who said she supplies an average of 30kg of milk daily, said Sh2 is deducted as commission for Lelbren, Sh3 for transporters and 20 cents for the Kenya Dairy Board per litre.

She said they rely on the sector to educate their children and meet other financial obligations and appealed to the creamery to offer the farmers better prices.

Tabachei said the poor prices may lead to farmers ditching dairy farming for other ventures, which may deal a blow to the sector.

He said they spend a lot of money to buy inputs and animal feeds to increase production during the dry season, and price cuts will affect their earnings.

MARKET TRENDS

Lelbren collects milk from farmers before supplying it in bulk to Lessos NKCC plant in Nandi County.

Its CEO Paul Sanga said the milk producer prices had dropped from Sh40 in January to Sh35 in February and now stand at Sh28.

But a manager with one of the NKCC plants in the region, who declined to be quoted because he is not authorised to speak to the press, said the prices were adjusted from Sh40 in January to Sh35 and not Sh28.

Other sources added that the market trends were affecting producer prices. The Sh40 per kilogramme the farmers received for their deliveries in January is the highest so far this year.

Kipkorir Menjo, a Kenya Farmers Association (KFA) director, said milk processors should be fair to farmers while adjusting prices and appealed to Kenya Dairy Board (KDB) to intervene.

“Due to value added tax, animal feed and veterinary services prices have been adjusted upwards and if dairy farmers are not protected, growth in the industry will be affected,” said Menjo.

Pius Cheserek, the North Rift KDB Regional Manager, said there is a free market and that prices are determined by demand and supply.