New dairy rules to set minimum farmers price

Agriculture Cabinet Secretary Peter Munya. FILE PHOTO | NMG

What you need to know:

  • Agriculture Cabinet Secretary Peter Munya said the draft regulations have been completed and are now in the office of the Attorney-General waiting to be gazetted.
  • Mr Munya said this will curb arbitrary price cuts, where some processors slash the producer price without justification.
  • The regulations are good news for farmers, especially after last year processors paid as low as Sh19 per litre, citing an increase in volumes in the market.

Dairy farmers are set to enjoy better returns from their produce following the adoption of the regulations that will set a minimum price for their produce, denying processors the liberty of lowering prices at will.

Agriculture Cabinet Secretary Peter Munya said the draft regulations have been completed and are now in the office of the Attorney-General waiting to be gazetted.

Mr Munya said this will curb arbitrary price cuts, where some processors slash the producer price without justification.

The regulations are good news for farmers, especially after last year processors paid as low as Sh19 per litre, citing an increase in volumes in the market.

“They (regulations) have undergone the public participation process and currently awaiting gazettement,” said Mr Munya.

Processors are currently paying on average Sh40 per litre, with Mr Munya saying the prices are good and were arrived at in a bid to control the influx of the commodity from neighbouring countries.

The CS added that under the new regulations, the minimum price of milk will be reviewed every six months to ensure farmers get the most from their enterprise.

Other reforms introduced by the dairy regulator include capping the amount that cooperative societies can deduct from farmers to Sh2 per litre to protect producers’ earnings.

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