In economic terms, whether it seems fair or not, what the government is asking is ..."is Ksh 1 bob sustainable?"

Lets take an example from another industry. Lets assume milk is 30ksh. Someone in the industry tells you production costs are Ksh 20 so there is a margin of Ksh 10 bob profit. The industry is thriving, all players 5 are paying taxes of Ksh 5 bob per packet. Then a competitor who is making a lot of money from milk in Dubai and Saudi comes and starts selling higher quality milk at 19 bob because he wants to increase market share and doesnt care whether he makes profits or not for 10 years becayse that is his "strategy". Do i need to explain further the ripple effect on the economy, taxes, jobs and other locally and foreign owned companies, especially the one owned 25% by the govt?

On Wed, Jan 19, 2011 at 1:02 AM, [Brainiac] <arebacollins@gmail.com> wrote:
More updates on the interview between larry and the new CEO on among others, the whole story being discussed here. 
http://www.youtube.com/watch?v=6ugRa7SILDo&playnext=1&playnext_from=QL

On Tue, Jan 18, 2011 at 10:43 PM, Mike M. <mmycool@gmail.com> wrote:
By virtue of Safcom being a kenyan company by shareholding,someone please write from a shareholder perspective....Much has been said from a consumer perspective.
The government that passed "dominance regulations" should also chip in to regulate this(nini?).
Do we pressurize the government to regulate the prices when we are the primary producers(Read farmers)?U'll hear the unscrupulous traders buying...Why not let market forces dictate prices?

Just trying to bring the other side of the argument. 

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