Dairy farming in Western Kenya is currently experiencing a significant downturn, with milk prices slashed due to a surge in production that has outpaced market demand and storage capacity. This unfortunate turn of events has left many farmers grappling with substantial financial losses, exacerbating the already challenging economic landscape in the region.
Recent reports indicate that several milk processors have reduced prices by Sh8 per litre, dropping from Sh38 to Sh30, in response to a surplus of milk flooding the market. This surplus has not only driven down prices but has also led to a critical shortage of storage facilities, forcing thousands of litres of milk to go to waste.
Stanley Ng’ombe, chairperson of the Kenya Dairy Farmer Federation, lamented the situation, highlighting the disparity between agreed-upon prices with regulatory bodies like the Kenya Dairy Board and the Ministry of Agriculture, and the actual prices being offered by private processors. This discrepancy, where processors are offering below-agreed rates, has further strained the financial viability of local dairy cooperatives.
The challenges faced by dairy farmers are multifaceted. In addition to plummeting prices, farmers are contending with soaring costs of animal feeds and poor-quality breeds, exacerbated by the high expenses associated with artificial insemination and embryo transplant procedures. These factors collectively contribute to diminishing profits and threaten the sustainability of many dairy operations across the region.
According to a Ministry of Agriculture report, despite Kenya’s potential to produce up to 12 billion litres of milk annually, current production stands at only 4.2 billion litres. This disparity underscores the inefficiencies in animal husbandry techniques and the pressing need for improved farming practices to optimize production and mitigate economic losses.
Ng’ombe further highlighted operational challenges faced by local milk cooling plants, such as Lelchego in Nandi County, which are operating below capacity due to reduced intake necessitated by the decline in demand. High operational costs, including electricity and transport charges, coupled with volatile feed prices, further compound the financial strain on dairy processors and farmers alike.
In response to these dire circumstances, dairy farmers are urging the government to intervene by bolstering support for institutions like New Kenya Cooperative Creameries (KCC). The hope is that increased funding will enable KCC to offer competitive prices and expedite payment processes, thereby incentivizing farmers to continue supplying milk to the state-owned firm.
Additionally, farmers are advocating for enhanced financial assistance through the Agricultural Finance Corporation (AFC), aimed at providing affordable credit to dairy farmers. Such measures, they argue, are crucial for revitalizing the dairy sector, empowering farmers to increase production sustainably, and ultimately, securing better livelihoods for rural communities dependent on dairy farming.
As dairy farmers await decisive government action, the sector remains at a critical juncture, with the future viability of thousands of farming families hanging in the balance. The urgency of addressing these systemic challenges cannot be overstated, as the resilience of Kenya’s dairy industry hinges on collaborative efforts to stabilize prices, enhance productivity, and safeguard the livelihoods of those at the heart of this vital agricultural sector.
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