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Monday, 06 June 2016

Cheap milk from South Africa, Europe hurts Kenyan exports

Kenya Dairy Processors Association chairman Nixon Sigey said the high cost of production in Kenya is making the country's milk uncompetitive in the export market. A recent study by Egerton-based Tegemeo Institute placed the cost of production at Sh16 on average in Kenya while another study by International Livestock Research Institute put the cost at Sh18 per litre of milk. In Uganda, a farmer will incur only Sh10 to produce a litre. Sigey also noted that the falling international prices of the commodity in the world market has also hurt the local products as countries from Europe export their milk products to Africa. "Our products are unable to compete with the countries such as Tanzania and Uganda because these commodities are very cheap there," said Sigey.

Source: bizcommunity.co.ke

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