Brookside Dairy will reduce its milk producer prices by Sh4 from next month. In a message sent to all farmers, Brookside which controls about 44 per cent market share, attributed the drop to prevailing market conditions.
Brookside Dairy has been paying Sh35, Sh33, and Sh31 per kilo to Murang’a, Nyandarua and Nakuru farmers respectively.
Dairy farmers are paid according to the composition of the raw milk components (butterfat, protein and other solids) of their milk.
Additionally, farmers also pay transport charges with those in Nyandarua parting with Sh3 per kilo and double that in Nyandarua.
The move by Brookside Dairy could trigger a fall in milk producer prices. Brookside has in the past pushed up producer prices forcing other processors to increase prices to retain their markets.
“The price slash is punitive. Transporters charge up to Sh6 per kilo in Nakuru and we’re left with a paltry Sh25 for every kilo sold,” said Esther Kamuiru, a Nakuru dairy farmer.