Kenya: Milk Prices Go Up Amid Supply Fall

Consumers will start paying more for milk starting this week following a decision by New KCC to adjust upwards the price of some of their products, as the processor responds to declining volumes and higher payment to farmers. In the latest review, a half-litre packet of milk will now cost Sh46 from Sh43 previously, marking the first major rise in cost since 2018 and setting stage for other processors to follow suit. The high cost has been precipitated by a sharp decline in supply, leading to a spark in producer prices with then additional cost having to be passed to consumers. "There has been a shortage in supply of milk, and this is the reason why the producer prices have gone up of late," said Livestock Principal Secretary Harry Kimutai. "Regarding the consumer price of milk, this is determined by the forces of demand and supply," he added. Processors increased producer price of raw milk by about Sh20 following a decline in supply in the last couple of months. Deliveries drop ...