Milk prices will retail at the current levels of 55 shillings per half a liter over the next three months.[Photo/courtesy]Kenya Dairy Board Managing Director Margaret Kibogy says initiatives such as duty free importation of 9,000 metric tons of powdered milk and onset of rains has boosted fodder production hence deliveries from farmers to help stabilize milk supply in the country.The government has allocated half a billion shillings for conversion of raw milk into powder to capitalize on the 20 percent increase in supply following the onset of the rainy season.To enhance efficiency in the local milk industry, the government last year set aside 500 million shillings that was used in the conversion of excess milk supplied by farmers into powder.This initiative has helped keep milk prices in check since January to May this year, though continued dry conditions ultimately saw the prices of milk skyrocket.And in April, the government allowed duty free importation of 9,000 metric tons of powdered milk that has helped reduce the retail price of milk.She says milk processors are currently operating at below 50 percent processing capacity.Informal milk marketing has dropped with at least 60 percent of milk in the country now complying with quality standards.The government expects milk prices to remain at current levels over the next three months.

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