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Milk prices still up Sh5 despite enough forage

Says prices should stabilise, producing counties have enough rainfall.

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by agatha ngotho

News04 June 2019 - 14:20
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In Summary


• Kenya has the highest milk demand in Africa. 

• Annual production is 5.2 billion litres that are all consumed and a 100 million litres deficit every year.

Milk shelve in a supermarket yesterday.

Milk prices are still high despite good rains being experienced in parts of the country.

Prices range between Sh55 and Sh60 for a 500ml packet, despite there being adequate forage in dairy-producing counties.

Livestock Principal Secretary Harry Kimtai said that in January, there was high milk production and prices went down.

“But due to changes in weather, the country experienced drought within a short period. There was a reduction in milk supply, and we had a challenge of low milk supply,” Kimtai said.

He said the situation has changed due to the good rains in many areas.

Dairy-producing counties in Central and Rift Valley have experienced enough rainfall for the last few weeks, hence, high milk production.

“I believe with increased production, prices will stabilise. According to the National Drought Management Authority, there is enough forage in the country, more so in the dairy producing-counties so we expect milk prices to stabilise,” the PS said.

He was speaking during the launch of the Kenya Dairy Annual Awards to reward the best value chain actors within the dairy industry.

The awards, he said, will help improve the sector and motivate the actors within the value chain.

Data from the Kenya Dairy Board shows that the dairy industry contributes more than four per cent of GDP.

This is due to the increasing domestic milk production, which averages 5.3 per cent per year and dairy processing capacity growing at seven per cent annually.

“This growth is driven by the growing urban demand resulting in a national per capita milk consumption of 110 litres, one of the highest in Africa,” KDB managing director Margaret Kibugoy said.

She said Kenya's consumption rate is higher than what is being produced annually.

The annual production is 5.2 billion litres, all of which is consumed. Every year there's a deficit of 100 million litres.

“Low production can be attributed to climate change, diminishing available land, population increase, low productivity and competition from other beverages,” Kibugoy said.

Keny has the highest demand for milk in Africa, she said.

In Uganda, consumption is 60L per person per year, Tanzania it is at less than 100L per person per year, while South Africa is 90L.

(Edited by R.Wamochie)

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