This archive report was first published on 22 September 2019.
Kenya's dairy farmers are facing a tough time due to cheap imports and high production costs, but a government task force is working to stem the tide.
According to Agriculture Cabinet Secretary Mwangi Kiunjuri, the task force will formulate new policies on animal feeds and supplements, marketing issues, and financial challenges as a result of delayed payments by major milk processors.
The government has already pumped Sh140 million to construct additional milk coolers, and a Sh900 million bull station has been built to boost the quality of animal breeds.
However, dairy farmers are still counting losses after processors cut producer prices due to an increase in supply. The glut has been caused largely by imports, and better weather has seen processors quickly adjust their prices downwards in the past one month.
Major dairy firms such as New KCC and Brookside Dairies are selling their processed milk products for between Sh34 and Sh38 per half litre, while a litre of Kenyan brands is retailing at between Sh100 and Sh110, or Sh50 and Sh55 for half a litre.
Uganda's Lato is one of the cheapest brands, selling for between Sh45 and Sh47 for a half-litre packet due to relatively low cost of production compared with Kenya.
The Kenya Dairy Farmers Federation wants the government to regulate importation, especially from Uganda, saying it is hurting the local sector.
“The Kenya Dairy Board should regulate the quantity of imports to cushion local farmers from cheap products,” said Mr Gideon Birgen, KDFF chief executive.
Mr Kiunjuri said the task force will table its findings in the next three weeks, and the government will continue to monitor the importation of milk powder but has no plans of halting the influx of processed brands from the East African Community.
