Sigey said fair price for milk should be Sh60 per pouch- suggesting that retailers could be inflating the price – taking advantage of supply shortage. High pricesHis main rival Brookside Diaries also attributed the high prices to market forces of supply and demand. ALSO READ: Rising food prices heap pain on poor households“Supply of raw milk fell during the first quarter of the year on depressed rainfall following the drought that hit key raw milk sheds across the country,” said John Gethi, Brookside’s director of milk procurement. Brookside controls 44 per cent of the country’s raw milk market has 160,000 contracted farmers. High processing costs and expensive packaging material are among reasons companies claim are behind the eventual retail prices.

Source: Standard Digital May 03, 2017 19:30 UTC