Blogs

Home | Blogs
Processed Milk Production Increases in Kenya
Jun 18, 2007

Processed milk output in Kenya rose by 140 % in 2005 but is still very low as consumer continues to prefer raw milk owing its good taste, low cost & high nutritional value.

KDB (Kenya Dairy Board) has announced a 140% increase in total production of processed milk to around 340 million liters in 2005, which is expected to rise further in 2006 to around 380 million liters.

Reasons for the growth can be attributed to higher & timely milk delivery payments and improved milk consumption from Kenyans. Moreover, ban on imported milk & powdered milk has helped in development of domestic dairy sectors as processors are receiving more milk & are able to increase their production capacity to tackle rising milk demands.

However, processed milk production is still very low in the country, 340 million liters of processed milk only accounts to 10 % of total milk produced (3.5 billion liters) in 2005.

This is because more than 75% of milk sales come from informal sales of raw milk from local farmers or hawkers, as raw milk is valued for low price & the butterfat content in the raw milk is known for taste & high nutrition.

A food industry analyst at
RNCOS said, "The 140% growth in Kenyan processed milk sector is seen as a big success but further growth in the dairy sector is facing some major challenges. Low quality animal feed, poor cattle health & breeding services, poor market access & weak regulation & legislations are the major barriers to the growth of Kenyan dairy sector."

As per recent research, there's not much difference in quality of milk from licensed & unlicensed traders. Also, the road infrastructure in Kenya is very poor which affects transportation of milk to the market.

Despite the setbacks, smallholder sector remains competitive in Kenyan dairy sector. Smallholders have been a major component in Kenyan dairy sector & it is important that smallholder dairy sector remains incorporated in Kenya's path to economic recovery.

Related Market Research Reports:
Indian Food and Drinks Market: Emerging Opportunities
South Korean Food and Drinks Market: Emerging Opportunities
US Wine Market Forecast to 2012