This archive report was first published on 24 August 2019.
Kenya: Dairy Farmers Suffer Exploitation ¶
Published on August 24, 2019
Milk processors in Kenya have been accused of exploiting dairy farmers by paying them a fraction of the cost of milk while selling it to consumers at exorbitant prices.
According to reports, the processors have reduced their purchase prices for a litre of milk by over 40 per cent in the past two months to Sh25 and below, but continue selling the commodity for up to Sh110 to consumers.
This is four times more than the purchase price, a rip-off that has made dairy farmers some of the most exploited in the region.
Brookside is the most expensive brand in the market, with most retailers selling half-a-litre at Sh55. Other brands such as KCC, Tuzo, and Fresha are selling at Sh50 for half-a-litre.
Mr Stanley Ng'ombe, the chairman of the Kenya Dairy Farmers Federation, blamed the current glut on inflows from neighbouring countries.
"Whereas we understand there are regional trade treaties that allow free trade, we know that powder milk is reconstituted in a neighbouring country and ferried to Kenya, leading to a milk glut," he said.
He added that the cost of production has gone up in recent months, with the price of maize used to make feeds rising from Sh2,500 to Sh3,500 per 90kg bag.
According to farmers, it costs them Sh22 to produce a litre of milk, apart from other expenses, and lowering the prices to Sh25 renders the sector unprofitable.
"The processors need to involve farmers in setting milk prices," said Mr Joshua Too, a dairy farmer from Chepkumia in Nandi County.
The Kenya Dairy Board (KDB), which promised last year to regulate milk prices to protect farmers against exploitation by processors, refused to comment on this story.
