Let’s Cut Milk Losses and Boost Farmer Incomes
Kenya’s dairy sector can thrive if we invest in farmers. From cutting milk losses to better prices, here’s what it takes to make dairy profitable.
Agriculture is the cornerstone of Kenya’s economy, supporting millions of livelihoods. As one of the leading milk producers in Africa, the dairy sub-sector contributes approximately four per cent to the GDP and more than 12 per cent to the agricultural GDP. Yet opportunities in the sector remain untapped, disempowering millions of farmers.
The sector has 1.8 million small-scale farmers, who produce 5.3 billion litres of milk annually, according to the Economic Survey, 2025. However, this falls short of the local demand. The International Livestock Research Institute says Kenyans are the highest milk consumers in Sub-Sahara, requiring 110 litres per capita. Demand stands at eight billion litres, and this could rise with population growth.
Despite this, Kenya remains a huge importer of milk, yet it has opportunities to produce enough for the local market and expand exports. In 2023, for example, dairy exports earned Kenya Sh7.3 billion. The Ministry of Agriculture projects raising this to Sh9 billion in the next one year. The success of this projection lies in ensuring that we develop policies and apply strategies that must begin with safeguarding farmers’ welfare.
This means we have to make dairy farming profitable. A farmer-centric approach is a leap in the right direction. The sector suffers from one major hurdle – milk spoilage. More than 175 million litres are spoilt every year, costing the industry about 7.9 billion. Small-scale farmers sell their produce through co-ops and are often burdened with the losses when milk spoils.
Sustainable farming
Historically, agricultural systems and markets have been designed to disadvantage farmers. We must discontinue the traditional brick and mortar way dairy business by improving infrastructure, improving animal breeds through affordable and quality artificial insemination, lowering the cost of production by providing affordable fodder, effective vaccination against diseases and modernising processing and handling.
By preserving quality, farmers can access better markets, negotiate fair prices and minimise wastage.
The recent launch of a Sh1.45 billion cooler project for 230 cooperatives is a step in the right direction. The coolers will save the dairy sub-sector Sh173 million annually. This initiative encourages sustainable farming and lays the foundation for a successful dairy sector.
Through collaborations and partnerships, feed makers, processors, central and county governments and other players need to adopt a role to play in scaling the sector by addressing productivity at farm level. These efforts will ensure farmers reap maximum benefits from their efforts.
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