Milk and egg prices rise high

Increased cost of production pushes Milk and egg prices high


Majority of Kenyan small-scale farmers do dairy and poultry farming as it does not require large land size. Demand for milk and eggs has been on the rise in the Kenyan market.

This has attracted imports from Tanzania and Uganda. Over eighty per cent of the animal feeds raw materials used in Kenya come from either Uganda or Tanzania

The fast-growing Kenyan animal feeds industry cannot produce sustainably using raw materials produced locally. The cost of production of maize, sunflower, canola and soya is high in Kenya compared to neighbouring countries.

Most of the consumers hoped that with rain and available fodder milk production will increase and hence decline in prices. This unfortunately is not the case as poor quality of fodder and cost of fuel plus availability of concentrates also matters.

Available Water for irrigation has been a huge challenge in the past years when rain has been unreliable.

Government subsidies on inputs such as seeds and fertilizers, continuous seasonal rainfall and cheap labour have forced the majority of farmers and millers to shift to Uganda, Tanzania and DRC Congo to produce key inputs.

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Factoring in the cost of production and transport, this form of production remains the most effective according to formulators. However, there are costs margins if exceeded will make these mega farming methods hard.

An increase in value-added tax on fuel as proposed in the proposed budget bill 2023 will increase the cost of milling and transport.

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In a span of one month, Maize germ prices; (a key component in feed formulations) has been rising from kes 1600 to kes 1900. As a result feed formulators have started increasing feed prices by kes 100 per bag.

Farmers on the other hand are left with nothing else other than increase their selling prices or quit farming. The egg prices have increased from kes 400-450 to 500 per tray.

Controlled imports of eggs and milk and a few numbers of dairy and layers of farmers have stabilized supply and hence market prices in the last five months.

Way Forward

Farmers are therefore advised to take advantage of the current long rains and plant these supplements as they are fast growing, require little rainfall,

Adulteration of wheat pollard and maize gern is on the rise and therefore should confirm the quality before payments.

Did you know you can also formulate your own food at home?

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