Consumers are having to dig deep into their pockets in order to pay for Inyange milk whose prices have risen by half in some shops amidst a severe countrywide shortage.

While the producers, Inyange Industries Ltd, has attributed the shortage to the dry season, which has caused a reduction of production at farm level, especially in the Eastern Province – it said factory prices were not changed.  

James Biseruka, the Managing Director of Inyange Industries, said that the prices are regulated by the Ministry of Trade and Industry.

"We maintained the same price at which we used to sell milk to distributors,” he told The New Times.

A box of a dozen half-litre milk packs goes for Rwf4,500 at factory price. The wholesaler is supposed to sell it at Rwf4,800 to retailers, while the final consumer should buy it at Rwf5,000, Biseruka said.

However, instead of pricing it at Rwf5,000, some traders in Kigali are selling it at different prices, some at Rwf7,500, others at Rwf9,000.

Biseruka said that the high prices are being driven by speculative traders along the supply chain.

Inyange’s processed milk production reduced by a half owing to the shortage of supply from farmers.

In Nyagatare District, for instance — one of the highest milk producing districts in the country— where they used to collect 100,000 litres from milk collection centres, the supply was reduced by over 80 per cent to some 13,000 litres, Biseruka said.

In some areas the supply shortage is so severe that traders have gone for months without receiving supplies from the factory.

Meanwhile, Biseruka dismissed allegations that Inyange Industries secured a lucrative market in the Central African Republic, and hence shipped the produce there.  

"We are targeting the export market...but the top priority is the local market. When we have satisfied the local market, then we move to export,” he said.

The warning

Cassien Karangwa, the Director of Domestic Trade at the Ministry of Trade and Industry, said that the long dry season caused a shortage of fodder and water for cows resulting in a reduction in milk production, and some traders have been exploiting the situation by hiking the prices.

Rwanda’s long dry season runs from June to August, but, Karangwa said that it was prolonged until September this year.

Karangwa warned traders against illegal price hikes.

"We will intensify inspection,” he said, warning about potential penalties that can be imposed to enforce compliance to competition and consumer protection laws.

Milk supply drop to major factories

According to data from the Rwanda Agriculture Board (RAB), on the comparison of milk supply to major dairy plants in the current dry season versus the rainy season, there has been a significant drop occasioned by the former.

It indicated that the Inyange factory in Masaka, Kigali is receiving between 40,000 and 50,000 litres compared to 100,000-120,000 litres per day in the rainy season.

Savannah Dairy in Nyagatare District, a subsidiary of Inyange industries is getting between 10,000-11,000 litres compared to 70,000 to 80,000 litres while Mukamira Dairy in Nyabihu District (owned by Inyange) receives between 10,000-13,000 litres during the dry season compared to 18,000 and 20,000 litres.

Nyanza Dairy (in Nyanza District) is receiving between 5,000 and 6,000 litres of milk per day compared to 16,000-18,000 litres during the rainy season; while Giheke Dairy in Rusizi District is collecting between 3,000 and 4,000 litres versus 6,000-7,000 litres.

Meanwhile, Samuel Nkuranga, a dealer of unprocessed milk in Kigali, told The New Times that its price slightly increased because of dry season.

"Towards June, I was buying milk from farmers at Rwf200 a litre, but I have been paying Rwf230 a litre during the dry season,” he said.

"While I was selling the milk at between Rwf300 to my clients, now they have to pay Rwf370 a litre,” he said.

Among actions to ensure sustainability of milk supply even during dry season, RAB cited the expansion of area for fodder growing, increased grass storage, as well as ensuring availability of water for cow consumption including through rainwater harvesting.