The government has moved to protect farmers from low milk prices
By Our Report
Co-operative societies income is expected to dip as the Kenya Dairy Board (KDB) has capped the amount they can deduct from farmers at Sh2 per litre.
Some co-operatives are currently charging up to Sh3 a litre as administrative cost to the dairy farmers.
The agency said the move is aimed at protecting producers’ earnings.
KDB managing director Margret Kibogy said farmers will earn at least Sh30 for a litre after deductions are made.
The change is a joint initiative between the board and the Commissioner of Co-operatives under the ministry of Agriculture.
A section of cooperatives have already opposed the move, arguing that they were not consulted, but the regulator and the commission of co-operatives said they are empowered by the law to make adjustments on pricing.
The government released Sh 500 million to boost milk prices from producers. Some processors have recently increased the price at which they buy milk from farmers with most now paying at least Sh35 a litre.
