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Dairy farmers in Western Kenya are facing significant losses following price cuts by milk processors due to increased production. This surge in supply has led to market oversaturation and insufficient storage facilities.
Most processors have reduced milk prices from Sh38 to Sh30 per liter, prompting an outcry from farmers who are already grappling with high production costs, resulting in substantial financial losses. Private processors have warned of the potential for further price declines as they navigate the challenges posed by excess production.
The Kenya Dairy Farmer Federation (KDFF) reported that thousands of liters of milk are going to waste. “Many milk cooperative societies are on the brink of collapse due to exploitation by private processors, who are offering as little as Sh30 per liter at the farm gate, contrary to the agreed price of Sh33 per liter established with the Kenya Dairy Board and the Ministry of Agriculture,” stated KDFF chairperson Stanley Ng’ombe.
The challenges facing dairy farmers are exacerbated by rising animal feed costs and declining quality of livestock breeds, worsened by the high expenses associated with artificial insemination and embryo transfer. A report from the Ministry of Agriculture indicated that Kenya produced an average of 4.2 billion liters of milk last year, significantly below its potential of 12 billion liters, largely due to poor husbandry practices.
Ng’ombe, who also chairs the Lelchego milk cooling plant in Nandi County, noted that the facility currently processes an average of 12,000 liters daily, despite having an operational capacity of 18,000 liters. This discrepancy has forced a reduction in milk intake to minimize losses.
“Post-harvest losses stemming from decreased demand, high operational costs for electricity and transportation, and fluctuating feed prices are major challenges in the sector,” he explained.
Farmers are urging the government to implement measures to support the industry, including increased funding for the New Kenya Cooperative Creameries to ensure timely and affordable payments for milk deliveries. Although the state-owned company offers Sh55 per liter, delays in payment have dissuaded farmers from supplying their milk.
They are also advocating for funding from the Agricultural Finance Corporation to be extended as credit to dairy and grain farmers, among other agricultural initiatives. “The government needs to enhance support for the dairy sector through the AFC and address the challenges hindering farmers’ efforts to boost production and profitability,” emphasized Mary Jeptoo from Sergoit in Uasin Gishu County.
The North Rift region is home to approximately 1.2 million dairy cows, along with 400,000 to 500,000 heifers.