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Export Growth Piles Pressure On Milk Price

01 August 2007

KENYA - Dairy farmers are hoping for better times ahead following the start of a costing review by the Government that sets the optimal producer prices for milk as export demand rises.

The ongoing review commissioned by the Ministry of Livestock and Fisheries development is expected to establish the prevailing cost of producing milk following increase in costs of farm inputs.

“After we do the review, we will know the minimum pay that farmers should be given and we will recommend this to milk processors,” the director of livestock, Mr Julius Kiptarus told the Business Daily.

Recent past reviews saw the producer price of milk double from a paltry eight shillings in 2002 to the current Sh16 to Sh20 a litre. Results of the review are expected to be released during next week’s livestock and fisheries week.

The review, which is being carried out by the Kenya Agricultural Research Institute, KARI, at the Naivasha station and will determine costings in zero grazing, semi -zero grazing, and open grazing.

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Source: Business Daily Africa



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