Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Kenya milk processor to boost output

NAIROBI, Kenya, Mar 15 – New Kenya Co-operative Creameries (New KCC) is set to boost its current production capacity to 700,000 litres a day in the next one month, according to the government.

The increase in capacity comes as the milk processor services its inactive and faulty machinery that have seen it turn away hundreds of farmers from its depots for lack handling capacity.

Cooperatives Development Minister Joseph Nyagah said on Monday that the move would cushion farmers from the effects of a glut, as was the case earlier in the year.

“We have been able to increase the capacity from 400,000 litres per day to about 600,000. I am confident that in the next one month or so that figure can go up to 700,000 litres,” Mr Nyagah said.

The Minister did not however say how much was being spent on the exercise.

It is also aimed at mitigating the amount of milk being thrown away as New KCC lacks storage and processing capacity for the high volume of milk.

The onset of rains towards the later part of 2009 saw processors report a 50 percent rise in daily intakes to 1.7 million litres compared to the 1.1 million before the rains.

Players in the dairy sector have already called for the establishment of a strategic milk reserve that would handle excess milk.

At the same time, Mr Nyagah added that he would look into the abrupt increase in the price of milk, saying he was not aware of latest development.

“I was not aware that the prices had gone up to the consumer but if what you are saying is true then I will go and look into it,” he told reporters.

Advertisement. Scroll to continue reading.

Consumers have raised concerns over a Sh4 hike in the price of half a litre of milk from an average of Sh24 to Sh28 shillings in retail outlets.

Reached to comment on the issue, industry regulator Kenya Dairy Board (KDB) also said it was also unaware of the developments.

However, a source at KDB who spoke on condition of anonymity since he was not authorised to comment on the issue said there was no regulation on the pricing of milk.

“The market is very liberal. The principle of supply and demand drives it and processors are at liberty to peg whatever price they deem fit,” he said adding that the glut experienced was slowly easing.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...