KENYA – Kenya is positioning itself as a future net exporter of dairy products by putting in the right structures to increase milk production and attract new investments in milk processing.
According to the latest data from the Kenya Dairy Board (KDB), the country recorded an annual production of 4.6 billion litres of milk last year, and with favorable weather conditions, volumes are expected to rise even further in 2024.
The dairy sector’s growth is underscored by a significant 49% increase in the value of dairy exports, which soared to a record Sh7.3 billion last year, up from Sh4.9 billion the previous year and a mere Sh568.9 million in 2021.
This surge in export value is driven by increased value addition, with products such as butter, ghee, and cheese seeing a rise in production to 1,072 tonnes from 835.2 tonnes in the previous year.
In an exclusive interview with The Star, KDB Managing Director and CEO Margaret Kibogy revealed that Kenya is targeting the Middle East for its dairy exports, with Dubai serving as a strategic hub.
The country also aims to strengthen existing markets in Tanzania, Uganda, South Sudan, China, and Somalia.
“We are putting in the right structures to increase production and product diversification as we target growth in exports,” Kibogy stated.
The dairy subsector, which contributes about 4% to Kenya’s Gross Domestic Product (GDP), supports more than 1.8 million smallholder farmers and remains a crucial part of the country’s food security and nutrition framework.
Kenya boasts a high per capita milk consumption rate, making it a leading player in the regional dairy industry.
To sustain and increase milk production, the Kenyan government, through the KDB, has implemented the Kenya Dairy Industry Sustainability Roadmap 2023-2032.
This strategic plan aims to accelerate commercialization, boost milk production, and increase the supply of milk to processors.
If successfully implemented, the roadmap projects that Kenya could achieve self-sufficiency by 2026, and become a net exporter of milk, with exports potentially reaching 586 million litres by 2033.
The country currently has a daily processing capacity of five million litres of milk, and the government has set ambitious targets to increase annual production to about 11 billion litres by 2027.
To achieve this, KDB is collaborating with industry players and farmers to improve output from small-scale farmers to major ranchers.
The government is also focusing on enhancing breed quality through a nationwide breed improvement programme, which includes reducing the cost of sexed semen to make it more accessible to dairy farmers.
In June, President William Ruto directed the reduction of sexed semen prices from Sh8,000 to under Sh3,000, aiming to boost milk production and productivity.
As part of the government’s efforts to ensure the safety and quality of milk, the Safe Milk Kenya campaign is being implemented in collaboration with USAID, Feed the Future, and Bio Foods, seeking to raise public awareness on milk quality, safety, and compliance.
Kenya’s current national milk consumption stands at 120 litres per person per year, making it the leader in Africa.
However, there is room for growth, with Kibogy noting that increasing milk consumption will further benefit the sector by allowing for more value-added products.
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