status of the kenyan dairy industry
DESCRIPTION
Dairy cattle population in 2012 – 4.2million heads (MOAL&F, 2012) Production estimated at 5billion litres Production has currently gone down due to; Cold weather Inadequate rains during the long rain season (Mar to Jul) Competition for land between livestock and crops (esp. in the Rift Valley) Delayed prices by some processors – has mainly affected intakes in the formal sectorTRANSCRIPT
STATUS OF
THE KENYAN DAIRY INDUSTRY
Presented during ESADA’s Breakfast Meeting,on 13th Aug 2014,
By,Machira Gichohi,
MD, KENYA DAIRY BOARD.
MILK PRODUCTION Dairy cattle population in 2012 – 4.2million heads
(MOAL&F, 2012) Production estimated at 5billion litresProduction has currently gone down due to;
a) Cold weatherb) Inadequate rains during the long rain season (Mar to Jul)c) Competition for land between livestock and crops (esp. in the Rift
Valley) d) Delayed prices by some processors – has mainly affected intakes in
the formal sector
MILK PROCESSINGIncreased investment in milk processing – current
capacity has increased from 2.9million to over 3.5 million litres par day
The number of milk processing companies are going down due to;a) Insolvency b) Mergers and acquisitions
Dropping milk intakes since beginning of the year
MILK PROCESSING CONT’
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000 Milk Intakes (Litres)
MILK PROCESSING CONT’
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000 Milk Intakes (Litres))
2011 2012 2013 2014
MILK PRICES
Producer prices continue to be volatile Average national prices per litre for the last 3
months (KDB, 2014)a) April – 31.75/= b) May – 32.2/= c) Jun – 32.9/=
Cost of production continue to be high (the Board is planning for a study to establish the costs of producing milk in Kenya)
MILK PRICES CONT’ Consumer prices continue to increase (KNBS, 2014)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
20.00 40.00 60.00 80.00
100.00 120.00 140.00
Prices of pasteurized milk (Shillings per litre)
2013 2014
DAIRY EXPORTS Major export products are UHT milk, milk powder, butter
and ice cream Major export destinations are Tanzania (leading),
Uganda, Southern Sudan, Rwanda, DRC, Malawi and Somalia among others
Fluctuations in dairy exports have been observed. This is caused by;a) Fluctuations in milk production b) Competition in the export marketsc) Increasing production in the neighboring countries – form
the largest of our export market d) Political instability (2008)
DAIRY EXPORTS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000 Dairy exports in KSh
MILK QUALITY Majority of the dairy standards harmonized in the
EAC GMP standard developed to facilitate compliance by
milk handling and processing enterprises Regular surveillance on quality and safety undertaken
by KDB, KEBS and other stakeholders
MILK QUALITY The major non compliances observed by KDB
include;
Stage in the value chain Major non compliancesRaw milk (sampled from transporters, collection centres and milk bars)
• High Total Viable Count (TVC)• High Coliform Counts(CC)
Finished milk products (samples from large, medium and small-scale processors)
• High Total Viable Counts (TVC) • High Coliform counts (CC)• Yeats and Molds (especially in
some fermented products)
KEY CHALLENGES Seasonality of productionLow productivity High cost of milk productionHigh cost of milk processingInformal milk marketing Competition in the local and export marketsPoor infrastructure – roads, utilities, network of
coolers etc.
NEXT STEPS TO DRIVE THE DAIRY INDUSTRY
Include the following among others; Promote organization of producers/bulking and cooling of milk Promote milk processing and value addition Improve productivity and manage costs Enhance milk quality, safety and traceability School Milk Program Strategic Food Reserve Guaranteed minimum producer prices Automation of dairy enterprises Improve infrastructure
Thank you