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New KCC increase producer milk prices, rises intake share to 35%

NEW KCC has announced an increment in producer prices of milk.

The dairy firm is seeking to consolidate its gains in seeking to play a central role in the dairy sector in the country.

Modernization of the state-owned firm has seen it raise control of the raw milk market intake share to 35 per cent.

CEO Nixon Sigei says they have increased the prices from about Sh36 per litre to range between Sh38 to Sh40 per litre.

“Modernization has given us the leverage to be able to improve our performance in the sector as we also work closely with producers so that we move forward as a sector,”said Sigei who spoke to the Star in Eldoret.

He said the modernization has enhanced capacity and efficiency with payout to farmers within the last three years having increased to about Sh5 billion from sh2.5 billion annually.

Read: New KCC upgrading plants for Sh1 billion

The company plays a critical role in stabilizing the raw milk prices and the modernization of the firm’s capacity is geared to reposition New KCC to reclaim its initial market leader position in the dairy sector.

The Eldoret Factory was refurbished at a cost of more than Sh400 million and work is still ongoing on other factories.

Repairs at Dandora and Sotik factories are almost complete with commissioning set for next month.

“We also have phase three of modernization at Kinganjo and Kitale still ongoing”, said Sigei.

Latest details from the Kenya Dairy Board (KDB) indicate that the difference in market control of raw milk between New KCC and Brookside is now about 5 per cent.

New KCC installed UHT milk production at the Eldoret factory which is one of the largest for the company.

Sigei says the same kind of upgrade is ongoing at the Dandora factory.

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