PHOTO | ONDARI OGEGADairy processors have reduced milk prices by Sh10 for a half-litre packet following a slight increase in supplies coupled with importation of duty-free milk powder. Brookside Dairy and New Kenya Co-operative Creameries (New KCC) announced fresh milk consumer price cuts starting from Monday as a result of improved raw milk intakes. “Eventually, the markets are expected to reach an equilibrium level.”GOVT INTERVENTIONThe statement added that the decision was further informed by the national government’s intervention, through a gazette notice, allowing importation of duty-free milk powder to help bridge the raw milk shortage. Milk prices had shot to an all-time high of Sh65 for a half-litre packet following prolonged drought, from December 2016 to May 2017, the longest dry spell experienced in Kenya in the recent past. Brookside registered a 30 per cent increase in raw milk supplies, attributing this to the increased producer prices of Sh42 a litre, as it sought to cushion farmers from the effects of the countrywide drought.

Source: Daily Nation May 30, 2017 03:56 UTC