New milk rules to raise cost of production, warn processors

Milk processors have opposed the draft regulations that they say will introduce additional levies to farmers and processors.

The processors, who will be holding a meeting this week to discuss the way forward, said most of the regulations formulated by the Kenya Dairy Board (KDB) are aimed at increasing the cost of production.

The chairperson of the Kenya Dairy Processors Association (KDPA) Nixon Sigey says that the regulations will make Kenya’s products uncompetitive in the region.

“We want our products and the dairy industry to remain competitive but these regulations with numerous levies will make the sector uncompetitive,” said Mr Sigey.

Mr Sigey, who is also the managing director of the State-owned New KCC, said they are working on expanding their market to other countries in the region and that high cost of production, which might result from the draft regulations, will hamper the move.

“We want to protect Kenyans from high cost of milk as well as ensure that our products can access international market at competitive rates,” he said.

Better future

KDB managing director Margaret Kibogy, however, says there is no need for alarm given that most of the issues will be addressed, pointing out that the regulations target better future for the dairy sector.

“We are still consulting on the regulations and we shall make necessary amendments in regard to stakeholders’ views,” said Ms Kibogy.

She said the dairy board is receiving reviews.

The regulations is a product of consultation of experts drawn from government, the private sector, development partners, milk producers, traders and processors.

“During its development, the experts made reference to the manner in which the dairy industries across the world were regulated,” she said.