The price of 500m long life milk is on average still retailing at Sh50 for all the brands while the ones in pouch, for the same quantity, is selling at Sh45 in most retail shops.
Farmers have protested the cut arguing that low prices in the wake of high cost of feeds will keep them out of business.
“This news has come as a shocker to farmers especially at this time when we are grappling with high cost of animal feeds,” says Stanley Ng’ombe, chairman of the Kenya Dairy Farmers Federation.
Mr Ng’ombe says production cost per litre of milk is Sh22.75 adding that the current price makes it hard for farmers to break even.
However, the board puts the cost of production at Sh19 per litre for zero grazing, Sh17 for semi-zero grazing and Sh10 for the open field grazing.
This is the first time in two years that processors have cut the price by a huge margin, after it remained constant for the whole of last year.
The Business Daily was unable to get any response from the processors as phone calls and email sent went unanswered.