Milk Prices Yet To Go Higher Due To Prolonged Drought
The Kenya Dairy Board has implemented a price increase as a result of the protracted drought and high cost of dairy products.
Margaret Mwanzia 
Because of the high cost of animal feed, prices have increased by more than 30% in the last year.
As a result, the price of white gold has risen from 45 shillings in June last year to 65 shillings for a 500ml packet of milk now.
According to the Kenya Dairy Board, price pressure will continue in the coming months as processors are unable to obtain sufficient volumes from farmers due to the current drought.
Because most processors do not have inventories of powdered milk, which they routinely reconstitute into fresh milk when there is a shortage, the situation is predicted to deteriorate.
Some shops told the press that they are considering instituting milk rationing, limiting all purchasers to only two sachets a piece.
All of the major processors have raised their prices by between Ksh 5 and Ksh 7 for a 500ml packet of fresh and long-life brands, causing huge price increases for consumers.
The automated milk vending machines are now charging 70 shillings per liter, up from 65 shillings two weeks ago.
It is estimated that bagged milk runs out as early as 5:00 p.m. at major supermarket chains.
Experts have warned that as long as the market scarcity exists, prices would continue to rise.
However, the forecasted rains may help to reverse the current trend.
