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Economy

Kenya resists bid to curb farm gate milk prices

The State has opposed a bid to regulate farm gate milk prices saying it will make the local industry uncompetitive.

The National Assembly passed a resolution in September 2013 to review farm gate prices to Sh45 a litre while the Kenya dairy Board (KDB) is mulling over controlling milk costs and offer farmers a minimum price for their produce.

But the Ministry of Agriculture reckons that price control is not the best route and is instead working on reducing production costs to bridge the gap between producer and consumer milk prices.

Acting Agriculture secretary Adan Mohamed said setting a price might not be a sustainable way of ensuring farmers reap descent returns for their produce.