Milk set to cost more as Brookside increases farm gate prices by Sh5

Milk processor Brookside Dairy Limited has announced an increase in the price of raw milk delivered by farmers to the company. The move is likely to intensify the fight for control of the raw milk market in Kenya. PHOTO/FILE  NATION

In Summary

• The move could prompt other processors like New KCC, Buzeki, Sameer and Githunguri dairy to review their producer prices.
• Last week, the shelf prices of milk hit an all-time high, with some outlets selling the 500ml pouch at Sh55.
• Brookside Currently has 145,000 contracted farmers who deliver approximately 600,000 kilos of milk.

Milk processor Brookside has increased the price of milk from its farmers in a move likely to intensify the fight for control of the raw milk market.

The processor will start paying farmers Sh5 more for every kilo delivered.

This comes barely a month after a similar increment. The farm gate price per kilo of raw milk shall now be Sh40, up from Sh35.

Mr John Gethi, the firm’s general manager in charge of milk procurement and extension services, attributed the move to depressed supplies arising from erratic weather characterised by a cold August in the major milk sheds.

“We call on farmers to redouble their effort in milk production in order to further benefit from this price adjustment,” said Mr Gethi in a statement to newsrooms.

The move could prompt other processors like New KCC, Buzeki, Sameer and Githunguri dairy to review their producer prices.

Brookside controls 38 per cent of the local market.

Mr Gethi termed the price increase a show of commitment by the firm to farmers.

The processor plans to begin test runs of its dry milk complex by year-end, which will increase demand for raw milk.

Last week, the shelf prices of milk hit an all-time high, with some outlets selling the 500ml pouch at Sh55.

The Government recently signed a new law that will see milk products fall within the VAT bracket.

Brookside Currently has 145,000 contracted farmers who deliver approximately 600,000 kilos of milk to its bulking stations countrywide.