New KCC will not raise milk prices

April 28, 2011

, NAIROBI, Kenya, Apr 28 – Amidst a rising cost of living, the New Kenya Cooperative Creameries (KCC) on Thursday said it would not increase the price of fresh milk.

Chairman Matu Wamae said they would continue retailing at the current price between Sh30 and Sh32 for their 500 millilitre packet.

"It is our hope that the ongoing efforts by the government to contain fuel prices will enable us to maintain these prices for the benefit of all our customers.  As a company, we shall look at all means to ensure that we are doing all that is possible to control our costs of production," said Mr Wamae.

The dairy industry recently suffered a hit with a decline in milk output reported in parts of the Rift Valley, which accounts for more than 70 percent of the country\’s total output.

Managing Director Dr Kipkirui arap Lang\’at, who has been with New KCC for a month, assured that the company is in good standing and ready for the challenges ahead.

"KCC is a profitable company, even when it comes to difficulties we are still able to make a profit. The company is firmly on solid ground.  It is able to compete.  We enjoy 30 percent market share as a single company, and we want to remain the leader," Dr Langat said.

New KCC saw profits of Sh500 million in 2008 and 2009 respectively and hopes to see the same numbers in the coming year.

Dr Langat said the company would continue to strengthen its relationship with its farmers by giving good payouts.

According to Dr Langat, payout to farmers in the past three years has steadily been over Sh2 billion mark.

"We have been innovative as a company in organising farmer groups so that they can be able to supply milk in bulk, in chilled and good quality form to give them better returns," Dr Langat said.

In efforts to increase its market share, New KCC unveiled a new look for its popular \’Delite\’ Yoghurt, as part of a series of new product launches, which will include a new plastic tub for its 500 gram butter.

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