Why consumers are likely to pay more for milk in coming days

Low volumes of milk supply and high payments to farmers has  forced the New Kenya Cooperative Cremaries ( KCC)  to hike milk and dairy products prices. 

The Kenyan milk processor has been grappling with low milk supply throughout the year and balancing the prices for consumers. The sharp decline in supply was unprecedented. 

Principal Secretary Livestock and Fisheries Harry Kimutai said, "There has been a shortage in supply of milk, and this is the reason why the producer prices have gone up of late." 

According to the latest price review, a half-litre milk packet that previously retailed at  Sh43 now costs Sh46. 

Other milk processors are likely to follow suit, leaving consumers with burden of hiked milk prices at a time when the COVID-19 pandemic has dented people financially. 

The New KCC decision to increase milk prices re-emerges since the same situation occurred in 2018.

Mr. Kimutai added that "Regarding the consumer price of milk, this is determined by the forces of demand and supply,"

According to the Kenya Dairy Board, 2020 milk supply plummeted from 60 million litres in January to 43 million litres in June. 

The supply continues to dwindle because of depressed rainfall, the outbreak of foot and mouth disease in parts of Rift Valley and increase of animal feeds prices which has seen some  farmers abandon dairy farming amidst concern of the high-cost of production.