New KCC reviews milk prices to woo farmers

The New KCC has reviewed upwards the prices of milk paid to farmers in an attempt to woo them back to the firm, following a boycott over poor prices.

Dairy farmers have been complaining over the Sh28 paid to them by milk processors, with co-operatives saying that after deduction of operating costs, only Sh24 reaches the farmer, thus making the enterprise unprofitable.

However, New KCC chairman Matu Wamae said the board met last week and resolved to review its payment to farmers, saying the new prices — effective from next month, — would range between Sh30 and Sh35.

He said the new pieces would depend on the quality of milk delivered to the firm’s factories, with the firm preferring to pay more for chilled milk, which is said to be of superior quality.

He said firms and co-operatives that collect milk from farmers in bulk were likely to be paid a higher amount to cover the costs incurred.

The firm would, however, review the new prices in June, and establish whether there is need for further adjustments, said Mr Wamae.

The move is good news for farmers, most of whom had resorted to hawking milk directly to consumers where the earnings are more lucrative.

Currently, a litre of raw milk in Nyeri is selling as high as Sh45, with milk co-operatives opening several outlets where they hawk milk directly to consumers.

New KCC is also educating farmers on how to make and preserve their own feeds, to ensure milk production does not drop during dry spells.