The Ministry of Trade and Industry has set new prices for unprocessed fresh milk as the market faces milk shortages and price speculations from different retailers.

The new directives take effect on Thursday, August 24.

According to the statement from the ministry, a farmer will get Rwf300 for a litre of milk as the minimum price at a milk collection centre which will then be sold at Rwf322.

This is while a farmer or a collection centre that will directly supply milk to Inyange Industries in Masaka, Kigali, will get Rwf342 per litre.

The prices, according to the ministry, were agreed upon after consultations with various public and private institutions involved in the milk value and supply chain.

For other industries that work with farmers and collection centres, they will continue trading based on their agreements while considering new prices, whereas, for farmers who have existing markets at prices higher than the indicated ones, the new directives will not apply to them, it stated.

Over the past two months, milk consumers have seen limited supply along with price hikes going up by about 60 per cent.

Prices of unprocessed fresh milk for end consumers went up from Rwf400 a litre about two months ago to Rwf600 currently in some parts of Kigali.

For processed fresh milk by Inyange Industries Ltd, the price of a half-litre (or 500ml) pack increased by 60 per cent, from Rwf500 to Rwf900 at present, in some parts of Kigali. However, the firm says it has not increased its milk prices.

Last year, nine business firms were fined for hiking milk prices during an inspection conducted among businesses to curb the speculative prices of milk in a bid to ensure the consumer’s rights are protected.

Solange Uwituze, Deputy Director General in charge of Animal Resources Development at Rwanda Agriculture and Animal Resources Board (RAB) recently told The New Times that the observed shortage of milk supply is mainly attributable to the drought.

This is characterised by the scarcity of forage and water for dairy cattle which significantly affects milk production, particularly in Eastern Province.

She said that the current data on milk aggregation indicate that the average quantity of milk collected from 15 milk collection centres (MCCs) in Nyagatare (a major milk shed in the country), has decreased from 80,000-100,000 litres a day during the rainy season (March-April) to reach 39,900 litres a day (July).