1. : Deneside Farm, Njoro Presentation by Geoffrey Gicharu
Dairy Farming in Kenya :
Deneside Farm, Njoro
Presentation by Geoffrey Gicharu
17 April 2017

2. Key questions to ask ourselves:
Does Dairy Farming in Kenya have a bright future?
Will Kenyan dairy farmers ever make money.?
Despite all the donors and NGOs funding, (12 to 13 million US Dollars annually). Why are our farmers still poor?
Is dairy farming sustainable?

3. Challenges Facing Dairy Farming In Kenya
Increased cost of energy.
Increased cost of Feeds.
Uncertain weather patterns.
Farms are yet to fully recovered from the 2007 post election violence

4. Cost of Energy. Year Price of Milk Per Liter (Ksh)
Price of Fuel Per Liter (Ksh)
1990
2.80
0.92
1994 14
10.83
1997
25.90
1998
28.80
1999 16
39.20
2000 18
48.50
2001
2002
39.50
2003
39.00
2004
54.90
2005
58.00
2006 20
60.00
2007
63.75
2008 24
88.49
2009 27
69.45
2010 26
86.93
2011 28
117.70
2012 29
106.00

5. Price changes in Milk vs. Fuel for the past 2 decades

6. High cost of Plant protein feed. Less Cereals By-Products in Kenya.
2. Increased cost of animal feeds
High cost of Plant protein feed.
Less Cereals By-Products in Kenya.
High dependence of animal feeds (by-products) from the East African Region.
Future of animal feeds By-Products is not promising.

7. Price changes in Milk vs. Cotton Seed Cake for the past 2 decades

8. 3. Uncertain weather patterns
High temperature due to global warming
Unpredictable weather patterns
Frequent drought and crop failure
Heavy Flash Floods

9. Labour and labour costs has now become a major challenge
Farms have not recovered from the effects of post election violence in 2007
After the post election violence in 2007 transport costs, feed costs and other inputs have been going higher and higher.
Labour and labour costs has now become a major challenge

10. Current Situation of the Dairy Sector in Kenya
80% of milk production is done by the small scale holders.
Only 20% is by the medium and large scale farmers.

11. Current Situation of the Dairy Sector in USA
In 1940 – 20Million Milking cows averaging 2500kg per lactation in small holding farms averaging less than 50 cows/family.
Today- 9.7 Million milking cows averaging 10000kg per lactation in large farms averaging 5000 cows per family/holding

12. 4. Kenya’s dairy situation is not sustainable
80% - Small scale farmers /small holding.(less than 10cows)
20%- Medium and large scale farmers.
NB. The 80% small holding have no major investments and can therefore quit very fast.
The 20% large scale can not come out dairying overnight because of high cost of investment over the years . E.g. machinery and infrastructure.

13. How are Farmers dealing with these challenges ?
These challenges are now forcing/should be forcing farmers to;
Shutdown
Keep more cows per unit area
Improve milk production per cow

14. The Gross effects of challenges facing farmers
Our national herd size is shrinking very fast.
Dairy business has realized slow growth compared to other businesses
We have serious subdivisions of farms throughout the country.
These challenges are also affecting processors -serious shortage of milk and jobs are being lost.

15. What the processors must do to remain in Business
It is time to consolidate their business
Prepare for milk production glut
Improve management
Review raw milk price upward/ match the hawker price

16. The future success of Dairy
For the sustainable success of dairy farming in Kenya, a team effort is required from the following parties:
Farmers
Government

17. The farmers must do the following;
Re-evaluate their production goals.
Need to reduce calve mortality and grow calves faster.
Need to introduce other activities on our farms.
Need for farmers to own and manage their own milk processing plants.
Need to form co-operatives or partnerships

18. 2) The Government must address the following;
Formulate guidelines for the producer prices based on consumer prices percentage.
Set the minimum produce prices of raw milk through KCC. E.g. its been done in cereal farming (Maize)
The government must intervene though sub to save dairy farming from total collapse.
Interventions have been carried out to (Pastoralists) in Northern Kenya.
Funded purchase of livestock from drought affected areas.
Free vaccination programs.
Free supply of hay and water.
Free Dam constructions.
Tractors imported to assist land preparation .
Importation of cheap fertilizer.
The Government must urgently address underperforming institutions setup to support dairy farming in Kenya.

19. The 3 Key Government interventions to salvage the sector
Set up Raw Milk producer minimum Price/ Future milk producer prices to be based on % of the end user price
Intervention to support medium and large dairy breeders in getting affordable sexed semen/ machinery/equipments, affordable Plant and Blood protein e.g. Soya and cottonseed cake.
More farmers involvement in the management of farmers support institutions.

20. Conclusion Do dairy farmers have a future?
To all the stakeholders, I say YES. If we can work together as partners.
Each person in authority must work and do what he or she can do ,for tomorrow you may not have the opportunity effect good changes in the sector .
The future success of farming in Kenya is in your hands.

21. THE END
Questions & Comments ?