Kenya's dairy industry: the marketing system and the marketing and pricing policies for fresh milk

Abstract

Organisation of the dairy industry and the marketing system in Kenya is highlighted and marketing and pricing of milk in Kenya is discussed. The formal and the informal milk marketing subsystems are also discussed. The Kenya Cooperative Creameries Limited (KCC) handles most of the marketed milk that is not sold and consumed in the rural areas. A major role of the KCC is to receive, process and distribute fresh milk (as pasteurised milk) on a daily basis. However, the KCC also produces ultra-heat treated (UHT) milk for distribtion to more remote areas and also for distribution to primary school's under the School Milk (Feeding) Programme. In addition to this, the KCC also produces some other processed milk products, ranging from sour milk to skim-mlk powder and including butter, cheese, ghee, cream and yoghurt. The informal milk marketing sub-system deals with marketed milk that does not enter the formal marketing subsystem. This involves sales of raw milk by producers to consumers or by producers' agents to consumers. It also involves hawking of milk from home to home in the rural areas by itinerant traders.