The Rwandan government has announced plans to end administrative control over raw milk prices, allowing dairy farmers, milk buyers, and processors to negotiate farm-gate prices directly, while the government assumes the role of facilitator to ensure transparent and fair discussions. The announcement was made on July 31, 2026, by State Minister for Agriculture and Animal Resources Dr. Solange Uwituze during the launch of a dairy farmer training manual focused on improving milk quality and production.
The policy shift follows concerns from dairy farmers that the current Rwf400 per litre farm-gate price no longer reflects production costs. Farmers cited rising expenses for animal feed, veterinary medicines, water, electricity, fuel, and labour, arguing that the existing pricing structure has made dairy farming increasingly unprofitable. Officials stated that, similar to pricing reforms introduced for maize and potatoes, future milk prices will be based on actual production cost data and mutually agreed upon by producers and buyers.
According to the Ministry of Trade and Industry, the stakeholder-led pricing framework was introduced in 2025, and negotiations are expected to conclude before the end of August 2026, enabling the revised milk price to be implemented without delay. The discussions also highlighted seasonal production challenges, with Nyagatare District’s daily milk output falling from around 120,000 litres during the rainy season to about 35,000 litres in the dry season. Authorities urged farmers to strengthen fodder conservation and improve livestock feeding practices to stabilise milk production throughout the year.
The move marks a significant policy shift in Rwanda’s dairy sector, replacing government-set prices with a market-based negotiation model aimed at improving farmer profitability, enhancing value chain collaboration, and supporting long-term growth in the country’s dairy industry. (Dairy Business Middle East & Africa)
Source: Dairynews7x7 5 Aug, 2026 Read full story here
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