The Ministry of Livestock PS Jacob Ole Miaron said milk processors had reported reduced supply of the commodity as the country enters the dry season.
He said that the country is expected to record a milk deficit of about 30 per cent from between February and April, when long rains are likely to commence.
The PS said the situation was further complicated by very low national stocks of long life milk products such as milk powder and UHT milk which normally fills the gap.
“The milk processing plants are receiving less milk than the market requirements which has now pushed up consumer prices by almost 30 per cent,” he said.
The worst hit area according to the ministry is the Rift Valley region. Miaron told reporters in his office that the ministry was concerned by the low production but can only appeal to processors to consider reviewing the retail prices.
“Currently, the milk prices are not sustainable in the long run and the processors are advise to review current high prices,” he added.
Currently milk is retailing between 52 to 55 shillings per half a litre in major supermarkets but this price could even rise after the government admitted it has no power to control the cost.
The Kenya Dairy Board, which regulates the dairy industry, said the government cannot control prices, saying the industry is liberalised.
“It’s a free market where the forces of supply and demand determine the price,” KDB managing director Machira Gichohi said.
PS Miaron was speaking after inaugurating a task force established by his ministry to advise on ways of ensuring stability in the dairy industry during both the dry and rain seasons, to address both shortages and surplus during the two seasons.
The Task Force is made up of players from the sector who include famers associations, processors, and other livestock players and will be chaired and coordinated by the KDB. It will make its report to the PS within a month.
During the briefing, the PS said the government was moving with speed to ban the hawking of raw milk to protect consumers.
He said the ministry will invoke various laws such as the Dairy Industry Act, Public health Act, Drug and Chemical substances Act and Standard Act, to reign in on small scale traders who are engaged in hawking of milk. -The Standard
