Animal feed millers have called for an extension of the duty waiver on raw materials to make feed.
The Association of Kenya Feed Manufacturers has urged the government to extend the duty waiver on raw materials to cushion dairy and poultry farmers against high prices of feed.
This would be the third time the government extends the waiver on raw materials, including yellow maize, soya bean meal and vitamin premixes.
On August 11, 2023, the government allowed for an extension of the duty waiver until February 2024 through a gazette notice.
Paul Kamau, CEO of the feed manufacturers association, expressed optimism the government will extend the window for duty waiver after next month.
He said to some extent, the duty waiver has helped stabilise the prices of animal feed.
“However, prices are still not affordable for many farmers as the cost is high due to fluctuation of the dollar,” Kamau told the Star during an interview.
Kamau said 90 per cent of the raw materials in the animal feed industry are imported so when there is a fluctuation in dollars, the cost goes up.
Dairy meal is going for between Sh2,800 and Sh3,000 depending on the location, while poultry feed is about Sh4,000 per bag.
“The waiver has helped to stabilise and maintain the price for a long time. Most of our millers have not increased prices for a couple of months. But some of the millers are now thinking of increasing because the dollar has gone up significantly,” he said.
In 2022, feed manufacturers under AKEFEMA urged the government to allow for duty waiver on raw materials to make animal feed after farmers complained of the skyrocketing prices of feed.
To protect farmers against the high cost, the government granted a window of seven months from February 2023 to August 2023.
The window was again extended from August 2023 to February 2024 due to scarcity of raw materials in the global market following drought and the Russia-Ukraine war.
The gazette notice issued on August 11, 2023, exempted from import duty the raw materials for manufacture of animal feed and notified the public. This is in pursuant to the powers conferred to the Cabinet Secretary for the National Treasury and Economic Planning under Section 114 (2) of the East African Community Customs Management Act, 2004.
"With provisions of Item 20 Part B of the Fifth Schedule to the Act and in the spirit of government policy to increase livestock productivity and market access in Kenya by the CS for Agriculture and Livestock Development, an exemption from import duty shall apply in respect of commodities imported into the country on or before the February 7, 2024, by millers and feed premix formulators,” the notice read.
The gazette notice allowed for importation of 500,000mts of yellow maize, 150,000mts soya beans, 30,000mts of feed additives, 10,000mts of assorted protein concentrates and 37,500mts of premix ingredients.
“We are hoping for another waiver once this one comes to an end in February this year. We still have a challenge in getting maize and we are yet to start benefiting from the rains. We are still competing for the white maize available in the market with millers who make maize meal for human consumption,” Kamau said.
Farmers have been struggling with the high cost of feed, and while many have abandoned or downsized their farming ventures, some have introduced supplementing feed such as fodder and other crops to make ends meet.
Elizabeth Messi from Mulot in Narok county, has been a dairy farmer for nearly a decade but the returns were meager.
She has been able to change this situation, however, and increase milk production from one litre per cow by four fold, due to fodder farming.
Messi said by growing fodder on her farm, she has been able to cut down on the cost of buying feed.
She has three dairy cows and has increased production from two litres per day per cow to eight litres per day.
“This is my testimony and that is why I am encouraging other farmers to grow fodder to help them increase milk production. Every member of our dairy cooperative has seen an increase in milk production, even those who were getting one litre have seen an increase to five litres,” she said.
She sells a litre of milk for Sh50 and her cost of production is minimal because she is growing her own fodder.
“I mix fodder and legumes to feed my dairy animals. It is like when you add onions, tomatoes and spices to make food tastier. Even animals need spices in their food,” she said.
Jamina Musyoka from Kwa-kathoka village in Makueni county, has been a poultry farmer since 2020 during Covid-19 pandemic.
She said despite the high cost of animal feed, she is making good money from indigenous (kienyeji) chicken farming.
Many poultry farmers in the last three years have abandoned the venture or closed shop due to the high cost of animal feeds.
She said the major challenges include diseases and the high cost of feed but this has not deterred her from venturing into the trade.
“To supplement the improved kienyeji feed, I mix maize, cowpeas, and green grams, which I feed my chickens. It is not as expensive as buying the feed so I am able to save on this,” Musyoka said she is staying put and will not give up on her improved chicken feed.
