This archive report was first published on 3 July 2019.
On July 2, 2019, New KCC implemented a price cut for milk, reducing the shelf price by at least Sh5. This decision comes after a 25% rise in milk volumes from farmers.
The price of a 500ml long life milk now retails at Sh50, down from Sh55, while fresh milk on a pouch package sells at Sh48, a decrease from Sh50. This price reduction is expected to shift focus to other processors who might follow suit to remain competitive.
New KCC Managing Director Nixon Sigey attributed the price cut to an increase in milk intake, allowing the company to pass on the benefits to consumers who had grappled with high prices in the last three months.
"The consumer prices are coming down as we respond to increased supply in the market," said Mr. Sigey.
According to Mr. Sigey, the new prices were effective on July 2 and should shortly reflect in retail outlets. Although the quantities have not reached the expected levels due to the cold season, which is unfriendly to cows, the volumes are sufficient to change prices.
The country had suffered one of the worst droughts in years, taking more months than anticipated. The start of long rains this year was delayed for two months, as the downpour started in May, not March as forecast.
Kenya Dairy Board Managing Director Margret Kibogy noted that there were signs of recovery in the sector following good rains that sparked growth of fodder.
"We are now witnessing improved volumes in the sector following the rains that started in May," said Ms. Kibogy.
