The price of manufacturing of milk has dropped by 20 per cent within the final 5 years however stays excessive at Sh23 per litre. Agriculture Cupboard Secretary Peter Munya stated feeds and labour are the important thing drivers of prices.
He stated the federal government is working with stakeholders to create methods of additional lowering manufacturing prices in order that farmers can earn extra from their produce and have costs stabilised.
Talking whereas launching a report by the Kenya Dairy Board (KDB) on the price of manufacturing of milk in Nairobi, Mr Munya stated the dairy business is “very worthwhile”. He urged traders to make the most of native in addition to new and rising markets like Tanzania and the Democratic Republic of Congo (DRC).
A big market
He famous that DRC is quickly becoming a member of the East Africa Neighborhood and has a big marketplace for milk because the nation at present will get the commodity from Europe, which is much away in comparison with Kenya.
The CS stated the nation’s milk output has recorded spectacular development with annual yields rising by 12 per cent.
The nation’s milk output in 2019 was about 11 per cent of the 49.9 billion litres of milk produced in Africa, he famous. The business employs 750,000 folks straight, and creates 500,000 jobs not directly in service provision.
Mr Munya stated that following the current go to by Tanzanian President Samia Hassan, Kenya has requested Tanzania to take away the veterinary charges of TSh2,000 per kilo (about Sh95) imposed on Kenyan milk exported to Dar es Salaam to ramp up exports .
He stated when carried out, this can facilitate exports of our milk merchandise, particularly UHT milk, which was critically affected by the introduction of the charges.
On the price of milk manufacturing in Kenya, Mr Munya stated the report has articulately captured present information on dairy farm dynamics, the price of producing milk below totally different manufacturing techniques and scales, the price elements, the tendencies between 2015 and 2020, and proposed a number of suggestions to handle the price of milk manufacturing and enhance productiveness of milk per cow.
He stated, from the findings of the research, dairy farming is worthwhile and on common, a dairy farmer in 2019 earned Sh12.20 per litre in comparison with Sh4.20 in 2014.
The profitability different with the manufacturing system, highest for semi-zero grazers at Sh14.27 per litre, and lowest for zero grazers at Sh8.57 per litre.
The CS stated common profitability per litre of milk produced rose to a median of Sh16.20 in 2019, when different farm revenues corresponding to sale of livestock and manure have been thought of.
“This could excite and inspire farmers and potential traders to extend funding in milk manufacturing,” he famous.
The CS famous that whereas the price of milk manufacturing stays excessive at a median whole value of Sh23.30 per litre for zero grazers, Sh23.00 for semi-zero grazers, and KSh 17.24 for open grazers, the common value of manufacturing milk declined by 20 per cent during the last 5 years.
“This reveals that we’re making headway in managing the price of producing milk, though much more remains to be required to make our business extra aggressive regionally and globally,” he stated.
Nationwide productiveness of milk per cow, which elevated by 19% from 6.four litres in 2014 to 7.9 litres in 2019 remains to be comparatively low compared with common productiveness per cow per day in superior dairy nations corresponding to 34 litres in Denmark and 39 litres in Israel.
The report reveals that the biggest value elements of manufacturing milk are feeding and labour.
He stated gross income from milk improved by 3% during the last 5 years, suggesting an enchancment in producer costs for milk. That is anticipated to be increased because it was completed earlier than interventions have been undertaken by the Ministry in Jan 2020 to enhance and stabilize milk producer costs within the nation.
Nevertheless, it was famous that there’s a declining herd sizes per farm during the last 5 years with the common herd dimension per farm declined from 9 animals in 2014 to six animals in 2019 undermining the nation’s capability to be self- adequate in milk and milk merchandise.
He urged farmers to undertake labour saving applied sciences corresponding to chaff cutters and milking machines required by dairy farmers to handle operational prices.