New KCC registered a 74 per cent decline
of powdered milk production in 2016/2017 financial year, highlighting
the serious shortage of milk that saw consumers pay record price for the
commodity.
Data filed by the processor with the Kenya
Dairy Board (KDB) indicates the volume of powdered milk dropped from 3.8
million tonnes in the last financial year to a million tonnes in the
fiscal year ended June.
The drop was attributed to a severe drought that affected most parts of the country starting October last year.
“This
is a very huge decline of powdered milk produced. It is an indicator
that there was a serious shortage of milk in the market,” said KDB
managing director Margaret Kibogy.
The figures show the
State-owned firm produced 2.3 million tonnes of powder in 2015 and the
figure jumped to 3.8 million tonnes last year before dipping to a
million tonnes in the fiscal year that ended in June.
Processors
normally halt processing of powder if they do not get enough supplies
as they commit all the milk that receive in production of fresh
commodity.
“Powdered milk is only processed when there
is a surplus from producers. Last year there was none in the market due
to low volumes from farmers and that impacted negatively on the
production,” she said.
Treasury Cabinet Secretary Henry
Rotich in May removed duty on imported milk to ease the shortage that
had resulted to a sharp rise in consumer prices.
Milk
had risen to an all-time high of Sh65 per half a litre packet following
one of the longest dry spells recorded in the recent past. Processors
cut the price in May after a marginal increase in production.
The
drop saw the price of a half-litre packet of Ilara reduce to Sh55 from
Sh65, Tuzo Fresh to Sh52 from Sh62 and Molo fresh to Sh50 from Sh60 with
KCC fresh selling at Sh50 down from Sh60 at major retail outlets.
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