Farmers who have signed an agreement with Brookside dairy associated with Kenyatta Family will receive sh 5 more for a liter of milk.
The increment is meant to cushion farmers against effects of the prolonged dry weather experienced across the Country.
The increase in farmgate price comes weeks after the processor increased its retail prices by a similar margin.
Brookside’s director of milk procurement and manufacturing John Gethi said the company decided to pass the benefit to farmers.
“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.” He was speaking from the firm’s offices in Ruiru.
Large scale dairy farming in Kenya accounts for 20 percent of national milk production whereas small scale farming comprises 80 percent.
The dairy industry in Kenya has been and continuously plays an important role in not only in the economy but also the general well-being of the Kenyan population. Nutritionally, many consumers appreciate that milk is a good source of nutrition.
According to a report, Consumer Milk Quality Perception, by USAID’s Kenya Dairy Sector Competitiveness Program released in 2010, a majority of Kenyans have a high degree of positive perception of milk, with 62% of respondents associating milk with high protein content. Many consumers like milk as a balanced snack and for its good taste.
The dairy industry accounts for 14% of agricultural GDP and 6-8% of the country’s GDP. According to USAID the industry generates an estimated 1 million jobs at farm level and an additional 500,000 in direct waged employment and another 750,000 jobs in support services.
Dairy sector is a vital sector in poverty alleviation in both the rural and urban areas as it contributes to food and nutritional security and increased household incomes.
Kenya’s 1 million stockholders keep the largest dairy herd in Africa (larger than South Africa) according to Jimmy Smith, Director of ILRI. The industry contributes about USD 2 billion to the country’s GDP, according to USAID, considering the sector includes farmers, traders and vendors, collection centres, processors, and retailers.