Concern has been raised over dangerous imported milk powder
Pearl Dairy Ltd has raised concerns on dangerous imported milk powder which contain adulterants and contaminants such as heavy metals and radioactive material. The dangerous imported milk powder could be widespread in wholesale and retail outlets across the country according to a recent survey by Kenya Dairy Board. Pearl Dairy Ltd appealed to the Kenya Dairy Board, the Department of Veterinary Services and all Quality Control organizations to step up efforts to rout out these illegal imports
About two weeks ago Kenya Dairy Board put on notice retailers and wholesalers over the sale of illegally imported milk products. In a survey contacted on several milk outlets including supermarkets, the board found out that a number of the outlets were selling imported milk and milk products that had not been approved. It was also found out that some of the smuggled milk powder contained adulterants including melamine, heavy metals such as lead and radioactive material, which spelt serious health consequences to unsuspecting consumers.
Pearl Dairy Ltd CEO Mr. Atul Chaturvedi estimates that between 8-10 containers packed with tonnes of powder milk are smuggled into the country each month through Mombasa or Kenya’s porous border with Somalia. The milk is then packaged into smaller packs, branded and sold cheaply through retail outlets. “Besides the health risks cited by the KDB, the government was losing millions in revenue as the smugglers evaded paying the relevant duties and taxes applicable” Mr. Chaturvedi said.
Mr. Chaturvedi also said that the illegal trade is posing unfair competition to companies doing genuine business. This is because legally imported powder milk from outside the East African Community or COMESA attracts duties of almost 89%, making the smuggled milk products too cheap to compete against. Kenya Dairy Board agreed with Mr. Chaturvedi sentiments when the acting board Managing Director Humphrey Maina said that “such practices should not be allowed since they disrupt the local dairy enterprises through dumping of cheap and subsidised or contraband dairy produce. This makes it hard for local producers to sell their products”.
Mr. Chaturvedi says plans by his company to construct a Ksh. 80 million milk powder packaging plant in Kenya next year will largely depend on whether the market will have been stabilized from the illegal imports.
Pearl Dairy, a subsidiary of the Midcom Group, has its main production line in Uganda with a capacity for 500,000 litres per day and has established a presence in several countries in the region starting with Kenya.