Kenya has imposed a 10% import levy on dairy products, a move that seeks to cushion the local dairy farmers from unfair competition brought about by unregulated imports.
Earlier this year, a mini trade war erupted between Kenya and Uganda, after milk imports from the latter were impounded at the border, leading to a temporary ban on the importation.
The obstruction in Kenya of delivery trucks carrying Pearl Dairy products, as the company reported, cost them $0.6 million.
According to dairy industry regulations published by the Ministry of Agriculture, milk processors in the country will no longer set and adjust farm gate prices at will, which they apply when there is either a shortage or a glut.
The East African reports that last week, Brookside Dairy increased milk prices by one shilling per liter to Ksh36 ($0.34) from Ksh35 ($0.33) so as to cushion farmers from the effects of the COVID-19 pandemic.
Data from the Agriculture ministry reveal that the country imported 70 million liters and 10 million kilograms of powdered milk in 2018 and an additional 15 million liters of liquid milk and 1.5 million kilograms of powdered milk in January 2019.
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