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Farmers sell milk at sh30/litre, retailers sell sh110/litre
Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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We are bound to see a number of 'processing' plants spring up.. How much is a pasteuriser from shaina? and packaging... ?
Lakini niulize? Hata machinani selling unprocessed milk is illegal?
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Rank: Member Joined: 8/15/2008 Posts: 16 Location: Nairobi
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poundfoolish wrote:We are bound to see a number of 'processing' plants spring up.. How much is a pasteuriser from shaina? and packaging... ?
Lakini niulize? Hata machinani selling unprocessed milk is illegal? The license fee for setting up processing plants may rise. Interesting observation @QD. We are in a fix though, we cannot boycott milk since it is used with many other products like bread. Plus our children need milk too. What to do?
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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The new generation of milk farmers are by the day shying away from sellig raw milk, I know a couple of farmers who have opted to value add. Instead of selling a litre at Sh 30, they are making yoghurts, ice cream, the retun per litre balloons to Sh 300. Thats just the way capitalism is, nobody will pay you Sh 60 per litre coz you deserve it, if you want more go for it. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Will the price of milk teeth also go up?
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Rank: Member Joined: 3/12/2008 Posts: 215
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The Kenyan dairy industry has really performed well over the last 10 years with annual milk production doubling to >4 billion liters. It is important to note that >70% of the marketed milk is not processed due to a number of reasons including absence of formal (cold) marketing channels in some regions, better prices offered by informal milk traders to farmers, raw milk tend to be cheap for consumers, some consumers have developed a taste for raw milk etc.). To mitigate the risks associated with marketing of raw milk, the Kenya dairy Board (KDB) has in the past been involved in training and licensing of milk traders. For a trader to be licensed, he/she should have premises (a milk bar) for his business.
Although processed milk account for <30% of the marketed milk, the structure of the industry is such that it is dominated by a few but large players. In recent years, the number of big processors has actually fallen following the acquisition of Spin-Knight, Daima, Molo milk, Delamere dairies etc. by Brookside. And this is where I think the problem is emanating from. With reduced competition in the formal sector, it is likely that the few remaining big processing firms are attempting to make monopoly profits by offering very low prices to farmers and selling the processed milk at exorbitant prices to consumers.
Worse still, the big processors seem to be exerting some influence on KDB to outlaw sale of raw milk. Last week, after a report on some raw milk traders who were adding illegal substances in their milk, KDB decided to ban sale of raw milk. To me this is a very wrong approach as it fails to appreciate the fact that raw milk trading brings in competition in the industry which ensures that consumers get milk at low prices and farmers receive better prices. A better approach should have been to police informal milk trading, including de-registering and prosecuting those traders engaging in illegal practices. Indeed talk by some raw milk traders’ is that the reported incidence could have been stage managed to trigger the ban on raw milk trading by KDB. If the ban is enforced, milk consumers will pay through their noses and consumption will suffer big time. Also, many farmers are likely to find themselves with no markets for their milk. So my advice to the industry regulator is to find a way of regulating the informal sector rather than killing it. My thoughts.
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Rank: Veteran Joined: 9/19/2011 Posts: 1,694
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Obi 1 Kanobi wrote:The new generation of milk farmers are by the day shying away from sellig raw milk, I know a couple of farmers who have opted to value add. Instead of selling a litre at Sh 30, they are making yoghurts, ice cream, the retun per litre balloons to Sh 300.
Thats just the way capitalism is, nobody will pay you Sh 60 per litre coz you deserve it, if you want more go for it. Quote:
Proponents of capitalism use historical precedent to claim that it is the greatest wealth-producing system known to man, and that its benefits are mainly to the ordinary person.[12] Critics of capitalism variously associate it with economic instability[13] and an inability to provide for the well-being of all people
Am not sure i follow what people are complaining about. “People will believe a big lie sooner than a little one, and if you repeat it frequently enough, people will sooner or later believe it.” ― Walter C. Langer
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Rumour has it that nobody has ever fallen sick in Kenya as a result of consuming contaminated milk.... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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@kimiri.......Daima is still owned by the Sameer Group....sio Brookside. ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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take coffee much cheaper LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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kimiri wrote:The Kenyan dairy industry has really performed well over the last 10 years with annual milk production doubling to >4 billion liters. It is important to note that >70% of the marketed milk is not processed due to a number of reasons including absence of formal (cold) marketing channels in some regions, better prices offered by informal milk traders to farmers, raw milk tend to be cheap for consumers, some consumers have developed a taste for raw milk etc.). To mitigate the risks associated with marketing of raw milk, the Kenya dairy Board (KDB) has in the past been involved in training and licensing of milk traders. For a trader to be licensed, he/she should have premises (a milk bar) for his business.
Although processed milk account for <30% of the marketed milk, the structure of the industry is such that it is dominated by a few but large players. In recent years, the number of big processors has actually fallen following the acquisition of Spin-Knight, Daima, Molo milk, Delamere dairies etc. by Brookside. And this is where I think the problem is emanating from. With reduced competition in the formal sector, it is likely that the few remaining big processing firms are attempting to make monopoly profits by offering very low prices to farmers and selling the processed milk at exorbitant prices to consumers.
Worse still, the big processors seem to be exerting some influence on KDB to outlaw sale of raw milk. Last week, after a report on some raw milk traders who were adding illegal substances in their milk, KDB decided to ban sale of raw milk. To me this is a very wrong approach as it fails to appreciate the fact that raw milk trading brings in competition in the industry which ensures that consumers get milk at low prices and farmers receive better prices. A better approach should have been to police informal milk trading, including de-registering and prosecuting those traders engaging in illegal practices. Indeed talk by some raw milk traders’ is that the reported incidence could have been stage managed to trigger the ban on raw milk trading by KDB. If the ban is enforced, milk consumers will pay through their noses and consumption will suffer big time. Also, many farmers are likely to find themselves with no markets for their milk. So my advice to the industry regulator is to find a way of regulating the informal sector rather than killing it. My thoughts.
how do you expect the QCs to be paid... I may be wrong..but then I could be right
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Farmers sell milk at sh30/litre, retailers sell sh110/litre
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