Dairibord Zimbabwe Limited (DZL) has increased the producer price of milk by 27 percent from $5.50 to $7 a litre but it says since the purchase of raw milk from farmers constitutes over 47 percent of its overall costs, it will have to pass on the cost to the consumers.
DZL said it was increasing the producer price of milk to ensure the of dairy farmers viability in view of the rising costs of farm inputs over which farmers have no control.
It said the prolonged wet conditions over the past few months had also had a negative effect on milk yields.
It was therefore essential that the viability of dairy farmers was not only maintained but was also kept sufficiently attractive to ensure adequate supplies of milk for both local needs and export opportunities, DZL said.
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