Kenyan dairy farmers face financial challenges amid milk price cuts,  Kenya Dairy Farmer Federation

KENYA – Dairy farmers in Western Kenya are experiencing significant financial losses following processors’ reduced milk prices due to increased production, according to Kenya Dairy Farmer Federation.

The surge in milk output has led to a market glut and a lack of adequate storage facilities. Processors have cut prices by KES8, from KES38 to KES30 per litre, causing an outcry from farmers burdened by high production costs.

in an article published by The Star, the Kenya Dairy Farmer Federation (KDFF) reports that thousands of litres of milk are going to waste, private processors have warned of further price declines as they struggle with excess milk production.

KDFF chairperson Stanley Ng’ombe highlighted that milk cooperative societies are at risk of collapse due to low prices offered by private processors, which are as low as KES30 per litre at the farm gate.

This contradicts an agreement with the Kenya Dairy Board and the Ministry of Agriculture, which set a price of KES33 per litre.

“Most milk cooperative societies face collapse due to exploitation by private milk processors who are offering as low as KES30 per litre at farm gate level contrary to an agreement entered with the Kenya Dairy Board and Ministry of Agriculture of KES33 per litre,” he said.

The situation for dairy farmers is further exacerbated by the high cost of animal feed and the deteriorating quality of breeds due to the expensive costs of Artificial Insemination (AI) and Embryo Transplant.

A report by the Ministry of Agriculture indicates that the country produced an average of 4.2 billion litres of milk last year, well below the 11 billion litres projected by the Kenya Dairy Board this year.

Stanley, who also chairs the Lelchego milk cooling plant in Nandi County, mentioned that the facility receives an average of 12,000 litres daily against an operational capacity of 18,000 litres, forcing them to reduce intake to minimize losses.

He cited post-harvest losses, high operational costs for electricity and transport, and the fluctuating cost of animal feeds as critical challenges facing the sector.

Meanwhile, farmers are calling on the government to introduce measures to alleviate their plight, including increased funding for the New Kenya Cooperative Creameries (KCC) to ensure prompt and fair payments for milk deliveries.

Although the state-owned company offers KES55 per litre, delayed payments have discouraged farmers from delivering their milk.

Additionally, farmers urged the government to allocate funds to the Agricultural Finance Corporation (AFC) to provide credit to dairy and grain farmers, among other agricultural investments.

Mary Jeptoo from Sergoit in Uasin Gishu County emphasized the need for improved funding to the dairy sector through AFC to address the challenges hindering farmers’ efforts to increase milk production and profitability.

The North Rift region has an estimated 1.2 million dairy cows and between 400,000 and 500,000 heifers.

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