Brookside Dairy, owned by President Uhuru, has reduced its milk producer prices by sh4 beginning next month. This is despite maintaining its consumer prices for processed milk higher than any local processor.
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.
“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.
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.
Brookside has raised its milk prices after taking over another milk company in Kenya.
In June, Brookside acquired Â Sameer Agriculture and Livestock Limited (SALL), an Ugandan dairy company.Â Sameer Group is owned by Naushad Merali who is the 2nd richest Kenyan with a fortune FORBES estimates at $550 million.
The deal will involve Brookside taking over the management of SALLâ€™s contracted farmer and assets, including production of its fresh dairy products, which enjoy significant market share in Uganda.
Brookside will also upgrade all SALLâ€™s milk cooling and processing facilities in Uganda. Terms of the deal were not disclosed and executives from both Sameer and Brookside were not available to comment as at press time.
In Kenya, SALL produced Daima Milk and Yoghurt, whose production and processing has now been taken over by Brookside, effectively making the Kenyatta owned milk processor the largest in East and Central Africa.