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Brookside raise milk producer prices by Sh5

Zachary Ochuodho @zachuodho

Brookside Dairy has increased the amount it buys raw milk from contracted farmers to Sh36 per litre, coming on the back of drought that has seen milk production fall in the past three months.

The increment took effect yesterday and will benefit 160,000 farmers and 300 dairy groups contracted by the processor.

Brookside’s director of milk procurement  John Gethi said the price adjustment was meant to cushion farmers against prolonged dry weather.

“The current business environment has occasioned an increase in consumer prices of our products. We have decided to pass on the benefits of these increases to our farmers during this exceptionally dry period,” said Gethi.

Milk production

“We call on our farmers to redouble their effort in milk production in order to further benefit from this opportunity with the new price adjustment,” he added.

Last week, industry regulator, the Kenya Dairy Board, announced that intakes by processors had plummeted by five per cent in the first quarter of the year mainly due to the drought.

This effectively led to increase in the shelf price by Sh5 for a 500ml packet of long-life milk at major points of sale. Gethi said Brookside was keen to continue partnering with farmers to make dairy a generator of regular family income.

He said the firm had also scaled-up its partnership with the Co-operative Bank’s capacity building arm, the Co-op Consultancy and Insurance Agency, to train leaders of the processor’s 300 dairy groups on corporate governance.

Gethi said the training had inspired greater confidence in the farmer groups, leading to increased milk supply by member farmers.

Consumer prices

“The current business environment has occasioned an increase in consumer prices of our products. We have decided to pass on the benefits of these increases to our farmers during this exceptionally dry period,” said Gethi.

“We call on farmers to redouble their effort in milk production in order to further benefit from this opportunity with the new price adjustment,” he added.

Last week, industry regulator, the Kenya Dairy Board, announced that intakes by processors had plummeted five per cent over the first quarter of the year as the effects of dry weather continued to be felt across the country. The shelf price of milk also rose by Sh5 for the 500ml packet of long-life products at major points of sale.

Yesterday, Gethi said Brookside was keen to continue partnering with farmers to make dairy a generator of regular family income.

He said the firm had also scaled up its partnership with the Co-operative Bank’s capacity building arm, the Co-op Consultancy and Insurance Agency, to train leaders of the  processor’s 300 dairy groups on corporate governance.

Gethi said the training had inspired greater confidence in the farmer groups, leading to increased milk supply by member farmers.

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