The Kenya government is making a big move to help dairy farmers get better returns for their milk. Cabinet Secretary for Agriculture Mutahi Kagwe has announced that the government has invested Sh1.428 billion in new dairy infrastructure as part of plans to reduce production costs and cut the losses that farmers currently face.
Speaking before Parliament, Kagwe explained that this money will be used to buy 230 bulk milk coolers, with 200 of them being powered by solar energy. The government believes this is important because it will help farmers store their milk properly and reduce the amount of milk that gets wasted after production. The coolers will be spread across the country to help dairy farmers in different regions.
Solar Coolers to Save Farmers Money
The solar-powered coolers are expected to make a real difference for dairy farming groups. According to the Ministry, these coolers will help dairy cooperatives save around Sh73 million each year on electricity costs. That is money that can go back into farmers' pockets instead of being spent on power bills. The coolers will also make it possible for farmers to collect and store more milk — the facilities are expected to help farmers gather around 475,000 litres of milk every day.
Better Animals, Lower Costs
Beyond the coolers, the government is also working to help farmers improve their dairy animals. The Cabinet Secretary revealed that the government is subsidizing improved dairy genetics to increase productivity. They have reduced the price of quality semen from Sh2,900 to just Sh1,000 per dose. This 65 percent reduction means that more farmers can now afford to use better-quality bulls to improve their herds, which should lead to better milk production.
Feeding Animals is Also Getting Support
The government has also noticed that animal feed is expensive, and this pushes up the cost of keeping dairy cows. To tackle this, they have launched the National Animal Feeds Development Strategy and are setting up a National Strategic Feeds Reserve. They are also making deals with private companies to produce more animal feed locally. One example is a Sh300 million feed mill that De Heus company is building in Athi River.
There is also an agreement with a company called Al-Dahra, which is based in the United Arab Emirates. This company will use up to 200,000 acres at Galana-Kulalu to grow animal feed. These moves should help bring down the cost of feeding dairy cows across the country.
Tax Breaks to Help Production
The government has given some tax breaks to help farmers and companies involved in dairy production. These include removing import duties and Value Added Tax exemptions on certain raw materials used to make animal feed. These measures are meant to make it cheaper to produce feed and other dairy products.
Looking at the Numbers
According to studies done by the Ministry, it costs an average of Sh36.2 to produce one litre of milk across different farming systems. The government says these cost studies will help them decide on the right policies to support farmers and make sure they can earn a fair price for their milk as more people buy milk.
The government says all these measures are meant to bring down the cost of producing milk, build better farm infrastructure, help farmers produce more milk, and make the dairy industry stronger overall. For Kenyan dairy farmers who have struggled with low milk prices and high production costs, this new push from the government offers some hope that things could improve.
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