Brookside to pay farmers Sh42 per liter as drought bites

Milk processor Brookside has announced a Sh5 increase for the amount paid to dairy farmers.

This will see farmers allied to the country’s largest dairy company, earn Sh42 per liter of milk supplied to Brookside.

This is the highest payout by a processor at a time milk supply has been on the decline owing to the going drought.

Brookside Director of Milk procurement John Gethi said on Wednesday that the new rate is a bonus to farmers to cushion them from the effects of prolonged dry weather.

The move by Brookside comes at a time a 500 ml packet of processed milk is averaging Sh50 in the shops.

“The current business environment has pushed up the shelf prices of our products. We have decided to pass on the benefits of these increases to our farmers during this exceptionally dry period,” Mr Gethi said.

Brookside’s move signals a tough fight for the control of Kenya’s raw milk market, estimated to be over five billion liters per annum.

Mr Gethi said Brookside has an installed capacity of over 1.5 million liters of raw milk per day, and partners with over 300 dairy co-operatives.

The increased payout by Brookside is set to spur competition with other dairy processors set to revise farmers pay to ensure they have ample milk supply.

New KCC this week announced a Sh1 billion plan to modernize its equipment as it eyes increased production and expansion into the regional market.