Kenyan dairy shifts to quality-based milk payments

KENYA – Agriculture CS Mutahi Kagwe has said farmers will be rewarded based on milk quality, including protein and butterfat content, to support value addition in the dairy sector.

The CS said the reforms are driven by rising demand for products such as cheese and yoghurt, which depend on milk quality rather than volume. Kagwe noted that the transition will be gradual because milk-testing equipment is not yet available at all collection centres.

He urged farmers to prepare for the changes and join cooperatives to improve bargaining power and access better markets.

Speaking during the annual general meeting of Mukurweini Wakulima Dairy Limited in Nyeri County, Kagwe said the reforms will see farmers rewarded not only for the volume of milk they deliver but also for its nutritional quality, including protein and butterfat content, as the country seeks to strengthen value addition in the dairy sector.

“For many years, the milk industry has essentially been a quantity-based system where pricing has depended only on the litres supplied. Moving forward, we are adding another dimension—quality. The quality of milk you bring will also determine how much you earn,” said Kagwe.

The CS said the reforms are driven by the growing demand for processed dairy products such as cheese, yoghurt and other high-value products whose production depends on the quality rather than the quantity of raw milk.

“The amount of protein and other components in milk is becoming increasingly important because we are moving into cheese, yoghurt and other by-products. These products depend on the quality of the milk, not just the volume,” he said.

Kagwe noted that while some dairy processors have already adopted quality-based pricing, the government will implement the transition gradually because milk-testing technology is not yet available across all milk collection centres.

Kenya is Africa’s leading milk producer, with annual production estimated at about 5.4 billion litres, making the dairy industry one of the country’s most important agricultural subsectors, according to Principal Secretary for Livestock Production Jonathan Mueke.

This represents a 3.5% increase over the previous year and marks the third consecutive year of rising milk production in the country. It also sets a new record for the sector.

The sector supports millions of smallholder farmers and contributes significantly to rural incomes, employment and food security.

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