The government on Wednesday announced new milk prices for small-scale farmers.
The Agriculture Cabinet Secretary Peter Munya directed the New KCC to buy milk from farmers at Sh33 per litre up from Sh25, in a move aimed at boosting dairy farmers’ morale, who have been decrying poor prices.
Farm gate milk prices have dramatically dropped over the last three months due to oversupply, lack of market and cold storage facilities forcing many farmers to pour their milk.
A number of farmers have considered quitting dairy farming due to lack of profits.
While speaking during his first press briefing as the Agriculture minister, Mr Munya said milk prices will soon be reviewed upwards to Sh35 once KCC has the capacity to buy and process more milk.
At the same time, the CS warned local traders against importing cheap milk into the country when local farmers had more than enough to supply.