Milk production on rise but still below global benchmarks

KENYA – Kenya’s milk production has shown promising growth but remains far from global standards, according to Agriculture Cabinet Secretary Andrew Karanja.

Speaking at the launch of the 2024 Study Report on the Cost and Profitability of Milk Production, released by the Tegemeo Institute, Karanja highlighted that the average productivity per cow has increased from 7.9 litres in 2020 to 9.3 litres in 2023.

Despite this improvement, the country still lags behind global benchmarks such as Israel, where cows produce up to 40 litres per day.

The CS expressed optimism that with sustained efforts and strategic interventions, Kenya could achieve substantial progress in dairy productivity.

He emphasized the need for milk processors to adopt quality-based payment systems, which would benefit all stakeholders, including farmers, processors, and consumers.

Karanja noted that while the industry has maintained an average producer price of Sh46 per litre over the past year, it still falls short of the government’s recommended Sh50. He assured that the ministry would review and gazette updated minimum producer prices soon.

The recent report by Tegemeo Institute confirmed an increase in the profitability of dairy farming, with earnings ranging from Sh9.8 to Sh13.9 per litre, depending on the production system.

This profitability is noteworthy given the challenges posed by high costs of feed, fodder, and labour. The report also revealed that milk supplied to the formal market grew by 7.4 percent in 2023, rising from 755 million kilogrammes in 2022 to 811 million kilogrammes.

Correspondingly, the value of milk increased by 13 percent, reaching Sh40.5 billion, up from Sh35.7 billion the previous year.

According to the Economic Survey 2024, milk has become Kenya’s fourth most valuable agricultural commodity, after tea, horticulture, and cattle sales.

This sector supports the livelihoods of over two million small-scale rural dairy farmers. Margaret Kibogy, Managing Director of the Kenya Dairy Board (KDB), noted that milk production per cow had reached about 10 litres per day, up from six to seven litres in 2021.

She emphasized the importance of improving dairy genetics to further boost profitability.

Kibogy also highlighted a positive trend of more farmers selling milk through cooperatives, reflecting better organization and understanding of cooperative benefits.

The number of cooperatives has increased from 600 to 700, enhancing the quality of milk sold to processors. KDB is working to ensure that cooperatives take fewer deductions, enabling farmers to receive more for their milk.

Efforts to implement quality-based payment systems are underway. Kibogy explained that organizing farmers and aggregating milk will facilitate better quality monitoring.

With more testing laboratories in place, the board ensures that milk products meet safety and quality standards. The government has also invested in milk coolers, which help reduce bacterial levels and support the production of higher-value dairy products.

Currently, 85 percent of the 800 million litres of milk processed annually goes into UHT (Ultra-High Temperature) and pasteurised milk, with minimal processing of high-value products like cheese, ghee, and butter.

Kibogy emphasized the need to shift from volume-based to quality-based processing to meet domestic demand and boost exports.

She pointed out that while the sector’s processing capacity has increased from 3.5 million to 5.2 million litres per day, only 45 percent of this capacity is currently utilized.

“This means even if production doubles, the infrastructure is ready to handle it,” Kibogy concluded, underscoring the potential for further growth and modernization in Kenya’s dairy industry.