Farmers boost milk output by 13% as prices remain stable

KENYA – The quantity of milk purchased by processors from Kenyan dairy farmers rose by 13.1 per cent in the nine months leading up to September 2024, indicating increased production and consumer demand.

According to data from the Kenya Dairy Board (KDB), processors acquired 661.87 million litres of milk during this period, up from 585.08 million litres in the corresponding months of 2023.

This surge marks the highest recorded volume of milk purchased, highlighting both improved production by local farmers and expanding market demand.

Kenya Dairy Board Managing Director Margaret Nyakang’o attributed this growth to favourable weather conditions and enhanced farming practices across the country.

“Favourable weather and modern techniques have significantly boosted output,” Nyakang’o noted.

Despite this increase, retail milk prices have shown minimal decline.

According to the Kenya National Bureau of Statistics (KNBS), the average price of fresh packaged cow milk stood at Sh57.04 per litre in September 2024, reflecting a modest 0.8 per cent drop from Sh57.47 in the same month last year.

While processor purchases are poised to surpass last year’s record of 810.76 million litres, it is estimated that around 80 per cent of Kenya’s milk is marketed informally, escaping formal data capture.

Approximately 1.8 million smallholder farmers, who produce 80 per cent of the country’s milk, remain pivotal to the dairy sector.

However, local milk production still falls short of national demand, necessitating continued reliance on imports from neighbouring countries, particularly Uganda.

In response to these challenges, the government aims to implement sectoral reforms to enhance both the quantity and quality of domestically produced milk.

A proposed Bill seeks to incentivize dairy farmers by ensuring timely payments within 30 days of milk deliveries—a measure expected to further stimulate sector growth.

Meanwhile, scrutiny surrounds the management of dairy-related county programs. Trans-Nzoia County Governor George Natembeya faced intense questioning from the Senate over the use of county resources.

Concerns included uninsured county employees and a Ksh70 million milk program aimed at Early Childhood Development Education (ECDE).

Trans-Nzoia Senator Allan Chesang demanded explanations for the lack of medical insurance for teachers and healthcare workers.

“We need to see the policy documents from the insurance company,” Chesang insisted. The committee also queried the cancellation of a milk supply tender, which initially resulted in a Ksh7 million payout to a supplier who delivered only part of the order.

Governor Natembeya explained that the supplier insisted on upfront payment, which the county declined.

“He was paid Ksh7 million for the milk he supplied before the contract was cancelled,” Natembeya clarified, adding that the county has now engaged the New Kenya Co-operative Creameries (KCC) to supply the remaining balance worth Ksh63 million.