Readily available fodder owing to bountiful rain during the March-May season has resulted in equally plentiful milk output in Kenya, a situation that has culminated into a plunge in milk prices of between Kshs 2-3 per litre of milk sold to formal milk processors. Confirming this, the Kenya Dairy Farmers Federation reported that the volume of milk had increased from 4 million litres in March to 6.1 million litres in May 2015.
The two major milk processors in the country: the state-owned New KCC and private owned Brookside said that the fall in prices is a result of demand and supply forces. In contrast, consumers are enjoying low retail prices as milk processors have passed the benefits of increased milk volumes. However, it is interesting to note that the rate of price decrease for processed milk at 17% has been more than that of raw milk at a paltry 4%. Brookside set precedence in lowering milk prices in June 2015 while other processors obliged soon after. The company 44% of the milk market followed by the New KCC at 20% while Githunguri Dairy Farmers Co-operative is ranked third with 17%. Sameer — processors of Daima Milk and which was recently acquired by Brookside — commands a 6% market share.
http://www.businessdailyafrica.com/-/539546/2814556/-/12pjpqgz/-/index.html and http://www.businessdailyafrica.com/Brookside-cuts-farmer-milk-prices-on-rise-in-supply-volumes/-/539546/2786674/-/11tq9y9/-/index.html