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Kenya's Dairy Farmers Suffer as Milk Processors Reap Profits

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 28 August 2019.

Published on August 28, 2019, a report by the Daily Nation exposed the stark contrast between the prices milk processors pay to farmers and the prices they charge consumers.

While milk processors have reduced the price of raw milk to Sh. 25 per litre, they have simultaneously increased the prices of milk to consumers, with some brands selling at as high as Sh. 110 per litre.

According to the report, a visit to various supermarkets across the country revealed that a litre of milk is retailing at between Sh. 100 to Sh. 110, or Sh. 50 to Sh. 55 for half a litre. This represents an exaggeration of the selling price by over 400 per cent to protect profits.

Brookside, the most expensive brand in the market, is selling half-a-litre at Sh. 55, while other brands such as KCC, Tuzo, and Fresha are selling at Sh. 50 for half-a-litre. Daima and Lato are among the cheapest brands, selling from Sh. 45-Sh47 for a half-litre packet.

The report further highlights the disparity between the prices paid to farmers and the prices charged to consumers, stating that though there are other costs associated with the milk business, the huge disparity is unrivalled by any other food product processed locally.

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