Deputy President Rigathi Gachagua has attributed Kenya’s record dairy production of 5.2 billion litres to the recent surge in milk prices, which has incentivized farmers to increase output. The figure, reported by the National Dairy Board, marks a 12% year-on-year growth, reflecting improved productivity and market dynamics. Gachagua emphasized that the price hikes, which averaged 15% in 2023, have provided farmers with greater financial stability, enabling investments in better livestock management and infrastructure. 'This is a testament to the resilience of our agricultural sector,' he stated in a press briefing on Tuesday. 'We are seeing a direct correlation between market prices and production levels.'
The increase in milk prices has been driven by a combination of factors, including drought-induced feed shortages and rising transportation costs. According to the Kenya Agricultural and Livestock Research Organization (KALRO), the average price of a liter of milk rose to Sh28 in 2023, up from Sh24 in 2022. This has led to a 10% rise in the number of smallholder dairy farmers, many of whom have adopted improved breeding techniques and access to credit programs. However, the National Cattle Keepers Association has warned that the price volatility could undermine long-term sustainability, urging the government to implement price stabilization measures. 'While higher prices are beneficial in the short term, we need a structured approach to ensure farmers are not left vulnerable to market fluctuations,' said association chairman Joseph Njoroge.
The government has launched a multi-pronged strategy to sustain the growth, including the expansion of milk collection centers and the introduction of a digital tracking system to reduce post-harvest losses. These initiatives, part of the 2023-2027 National Dairy Development Plan, aim to boost exports and reduce reliance on informal markets. However, critics argue that the focus on production may overshadow challenges such as access to veterinary services and land tenure issues. 'We need to address the entire value chain, not just the output,' said Dr. Wambua Mwangi, an agricultural economist at the University of Nairobi. 'Without holistic support, the gains could be short-lived.'
The surge in dairy production has also sparked discussions about food security and economic impact. With milk contributing over 3% to Kenya’s GDP, the sector’s growth is seen as a key driver for rural employment and poverty reduction. However, environmental concerns have emerged, as increased livestock numbers raise questions about water usage and methane emissions. The Ministry of Environment has pledged to collaborate with stakeholders to develop sustainable practices, but the timeline for implementation remains unclear. As the sector continues to expand, the balance between economic growth and ecological responsibility will remain a critical challenge for policymakers and farmers alike.