Milk production declines sharply as stocks plunge

Milk production has dropped by six million litres since January even as high demand for long-life products in the wake of Covid-19 is quickly depleting the available stock.

Watchdog Kenya Dairy Board says production has dropped from 60 million litres in January to 54 million litres at the end of March.

The decline was occasioned by the onset of the planting season, which cut down on the available grazing fields for animals.

“We’ve witnessed a decline in production since January but we expect the volumes to rebound this month,” said KDB managing director Margret Kibogy. Ms Kibogy, however, said production would decline between June and July.

“As usual, the production normally comes down during cold period, which affects the animals,” she told the Business Daily in an interview.

The regulator has also reported high demand for long-life products with the processors having had to release most stocks as Kenyans rush to buy more of UHT and powder milk over the uncertainties caused by the pandemic.

The KDB said, however, consumer prices are unlikely to go up because of a decline in demand of fresh milk, which is highly consumed when schools are in session and restaurants are operational

Schools were closed in March due to Covid-19 outbreak, which also saw closure of the eateries to curb the spread of the virus.

The government has allowed partial reopening of eateries but under strict conditions that might lock most of them out

Consumer milk prices have remained relatively low with a half litre of long life retailing at Sh50. The decline in production will see producers continue enjoying good prices with a litre rising to a high of Sh38, which New KCC and Brookside are paying farmers.