By last week, no processor had imported powdered milk. [Photo/businessdailyafrica.com]
The increasing cost of powdered milk in the international market has compelled processors to shy away from importation even after a duty waiver, forcing government to extend the period by two months.
Agriculture cabinet secretary Willy Bett said the extension will allow processors seek competitive prices in different markets and import at least 9,000 tonnes of powdered milk.
“By last week none of the processors had imported powdered milk as they cited high cost of the commodity in the markets they were targeting; for this reason we have had to extend the window,” the CS said.
A special gazette notice extended the importation window from July 31 to September 30.
Processors had raised concern with the government that the window period given was too short for the shipping process.
Treasury cabinet secretary Henry Rotich in May removed duty on milk importation to ease domestic shortage that had accrued from a sharp rise in consumer prices.
Milk production has since April shot up by 10 per cent following the onset of rains, although the dairy regulator said production will normalise in September after the current cold season saw volumes decline.
Milk prices had increased to an all time high of Sh65 for half a litre packet following prolonged drought that hit the country last year.