Business News
Milk price cut sets off protests
Farmers said recent rains did not warrant a price reduction by the New Kenya Cooperative Creameries, because “a cow is not like a machine which changes overnight.” Photo/FILE
Posted Wednesday, January 13 2010 at 19:01
Farmers have criticised the government creamery for reducing the price of milk for a litre from Sh24 to Sh23, even as hundreds of litres of milk goes to waste due to limited capacity at some collection points.
The farmers said the recent rains did not warrant a price reduction by the New Kenya Cooperative Creameries, because “a cow is not like a machine which changes overnight.”
Speaking to the Nation in Eldoret, the farmers, led by Mr Timon Busienei, said the rains started on December 23, while the creamery announced a price reduction starting from January 1, 2010.
“Price reduction is usually quick, but when it comes to increase, it usually take ages when drought has taken a toll on us,” said Mr Busienei. The new price was announced in a memo pasted at Eldoret KCC plant, written by the acting managing director Milcah Mugo.
In Nandi, milk is going to waste due to congestion at Kapsabet and Lessos collection points, with farmers calling for their expansion.
Since Monday, the plants have not been able to handle milk delivered by farmers. The farmers, led by Pastor Simeon Nyoros, said on Wednesday that more than 70,000 litres of milk had gone bad.
The situation had been worsened by lack of lorries to take the milk for processing to either Eldoret, Kitale or Sotik plants, he added.
Lessos is meant to handle 20,000 litres a day but it is now receiving more than 32,000 litres while Kapsabet plant, with a capacity of 27,000 litres, is now receiving more than 40,000 litres.
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Submitted by toboa yotePosted January 14, 2010 01:59 AM




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Market forces. Cows produce more milk when there is more food and thanks to the rain there is more, better and cheaper pasture. Consumers should benefit from the rain as well