A 500ml packet of milk is currently retailing at between Sh50 to Sh58 depending on the brand. This is an increase from an average of Sh48 for a 500ml packet last year.
Livestock Principal Secretary Harry Kimtai attributed the increase to the severe drought in the country and the high cost of animal feeds.
“When fuel prices go up, the cost of production increases too and the farmer cannot bear that burden alone so it is passed on to the consumer,” he said.
Kimtai however said the farmer is still incurring losses despite an increase of Sh2 in milk.
This is because he is selling a litre of milk at the farm gate at an average of Sh40. The PS pointed out that for the farmer to break even, the actual price should be somewhere about Sh55 per litre.
“The cost of production keeps going high due to the cost of feeds and drought. Despite the consumer price increase, dairy farmers are still footing a big bill because they are not able to break even,” Kimtai said.
“Consumers need to understand the reality that the cost of living has gone up and with drought and high cost of animal feed, the farmer is struggling to produce milk,” he said.
Currently, a 70kg bag of dairy meal is priced at Sh2,500, layers mash at Sh3,500, and broiler starter mash at Sh4,750 while pig feed is averaging at Sh2,550 per 70kg bag.
According to Tegemeo Institute, competitiveness of the livestock value chain is directly impacted by the cost of feed.
Feeds account for over 70 per cent of the cost of production and 36 to 50 per cent of the cost of production of milk depends on the production system.
The PS encouraged farmers to engage in fodder production, especially growing protein fodder like Lucerne, desmodium grass and others found to have high protein content which they (dairy farmers) can supplement with the dairy meals they are buying.
“We are also encouraging farmers on the use of semen so that they are able to access good breeds of animals. This is now available because the Kenya Animal Genetic Resource Centre is being supported with the infrastructure to ensure farmers access quality semen both locally and also from out of the country,” Kimtai said.
He said the government is targeting to increase productivity of dairy animals from seven litres per day to 14 litres per day by the year 2027.
“This is our target for now and it is achievable if farmers use the right improved breeds of animals and change their production system by using fodder,” he said.
According to the East Africa Food Security update by the Alliance for a Green Revolution (AGRA), the majority of the region continues to experience atypically high food prices due to worsening macroeconomic conditions, and persistent low domestic cereal supplies.
In Kenya, high levels of food insecurity persist after the country experienced its fifth below-average rainy season. High inflation continues to erode household purchasing power leading to widespread IPC Phase 3 outcomes.
The January drought early warning bulletin by the National Drought Management Authority shows that milk production during the month of December remained stable in most counties compared to November.
Garissa, Isiolo, Kajiado, Kilifi, Kitui, Kwale, Laikipia, Lamu, Nyeri, Samburu, Tana River and Tharaka Nithi showed an improving milk production trend.
“The current milk production status in 21 of the 23 counties is below average compared to normal years,” says NDMA.
-Edited by SKanyara