News and knowhow for farmers

Kenya Dairy Board 2021 study shows dairy farming remains profitable

cost of milk production in Kenya
Share on social media

By George Munene

According to a 2021 study on the cost of milk production in Kenya commissioned by Kenya Dairy Board (KDB) dairy farming remains one of the country’s more profitable agricultural ventures.

According to data collated by the study’s rapporteur The Tegemeo Institute of Agricultural Policy and Development (TIAPD), on average, major milk processors bought milk for Sh35 in 2019, while the cost of production ranged from Sh17-27. Gross revenue earned from milk production also improved by three per cent over the last five years.

Related News: Kericho farmer builds model dairy unit milking 520 litres daily

Related News: Livestock consultant introduces milk booster increasing output by 7L

Intensive dairy production systems such as zero grazing had the highest gross revenue, Sh35.87, marginally better than semi-zero grazing, Sh37.27. Extensive farming, i.e, open field grazing, earned a  total income of Sh31. However factoring in the costs of production intensive dairy enterprise had a lower whole profit, Sh10.3 a liter to Sh18.43 accrued from semi-zero grazing and Sh19.74 gotten from open field rearing.

Feeds and labour accounted for most of the cost of production at 85 per cent. Feeding zero grazed cattle accounted for 55 per cent of farmer’s cost, this was 45 per cent for open grazed cattle cattle and 37 per cent for those that were semi zero grazed.

Conversely, semi zero grazed cattle consumed the most in labour costs, 48 per cent, while zero grazed cattle consumed the least at just 33 per cent.

Related News: Vet soars in goat milk sales by cracking marketing and logistics

The report also showed that a majority of farmers have embraced intensive systems of production. Intensive dairy farming was most practiced by farmers in Meru, Nyeri, Muranga, Taita Taveta, Embu, Kiambu, Nakuru and Machakos. Open field grazing was common in Narok and Uasin Gishu counties.

Share on social media

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top