August 2, 2024

 

Milk purchases by Kenyan processors surge by 19.2% amid improved output

The volume of milk purchased by processing firms from dairy farmers in Kenya increased by 19.2% in the first half of this year, according to recent data, due to a significant improvement in milk output, Business Daily reported.

 

The growth in milk production was primarily fuelled by abundant grazing pasture and fodder, thanks to above-normal rainfall during the period, along with a reduction in the cost of dairy inputs.

 

Data from the Kenya Dairy Board indicates that milk purchases by processors reached a record high of 437.7 million litres in the six months leading up to June. This is an increase from 367.1 million litres during the same period in 2023.

 

The average price for 100 litres of milk rose to KES 5,083 (US$39.10) in 2023, reflecting a 7.6% increase from KES 4,720 (US$36.31) in the previous year, as reported by the Kenya National Bureau of Statistics (KNBS).

 

This marked the fifth consecutive year of year-on-year growth in milk prices. The last time milk prices declined was in 2019, when the price fell to KES 3,000 (US$23.08) for 100 litres, down from KES 3,530 (US$27.15) in 2018.

 

As of last year, the Kenya Dairy Board had licensed approximately 334 milk producers and coolers nationwide.

 

A market analysis conducted by the Competition Authority of Kenya previously revealed that Brookside Dairy Limited, a privately-owned company, is the largest milk processor in Kenya, commanding a 40% market share.

 

The State-owned New Kenya Cooperative Creameries holds an estimated 25% market share, while Sameer Agriculture and Livestock controls 14% of the market.

 

Other leading processors in the country include Githunguri Dairy Cooperative (12%), Pascha-Uplands Premium Dairies and Food (1.7%), Musty Distribution (3%), Doodla Dairy Kenya (0.9%), and others collectively holding a 3.4% market share.

 

Despite the increased production, demand for milk continues to exceed supply. As a result, Kenya is increasingly relying on imports, particularly from Uganda, to meet the demand for processed milk and milk products such as ghee, cheese, butter, and yoghurt.

 

-      Business Daily