David Mwiine, the chairman of the Rukaka Dairy Farmers Cooperative Society Limited in Rubindi, who were supplying the milk to the company, said for a week now, they have been unable to take milk to the processor.
His position comes at the height of a trade war between the two countries, following the confiscation of trucks of Lato Milk by the Kenya Bureau of Standards and the Kenya Revenue Authority. The authorities said that the products were substandard. Kenya had earlier said that it was going to impose a 16 per cent Value Added Tax on the product.
This is likely to escalate the dispute between Uganda and Kenya on milk exports. This week, Kenya anti-counterfeit unit raided distributors in Meru in eastern Kenya and confiscated up to 23 tonnes of milk.