Getting Better Prices

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Dairy is the largest agricultural sub-sector in Kenya at 4% of GDP and 19% of Agricultral GDP. Approximately 5 billion litres of milk are produced each year with the vast majority (over 80%) produced by small-holder farmers.

That means small scale farmers are the backbone of production

What are my options to sell?

As a dairy farmer your concern will be how to get the best price. Anne asks the key question:

Anne’s Question

Hi farmers, lets talk about where our milk ends up. - Dairy Societies, milk bars, hotels, schools, industries etc.

What are the challenges and how can we help each other market our milk and maximize profits. Those with ideas of supply chains, how can we all benefit?

Posted by: Anne K
76

It’s important to note there are multiple avenues. For example, many consider Co-operatives…

Stephen supports Co-ops

I make an effort to supply my co-op with all my milk but they can only have 2 collections while we have 3 milking so I have a side buyer for the evening collection.

I have been working with co-ops and researching too. For a co-op to process ideally you need to have 20-25k kgs per day for it to make economic sense.

Another angle is that we have too many co-ops in central and rift competing unnecessarily. Nyandarua county has realised this and their co-ops are bulking individually but they will be processing together. This works well for Meru Dairy which is a collection of 26 dairies

Posted by: Stephen K
57

Milk vendors may allow farmers to get closer to the end consumer. Farmers like Peter put in the resarch to understand such options…

Peter’s Research on Milk Vendors

Spent my time today in Eastllands doing market research on Milk. I found out that there are milk vendors selling over 1000 litres of milk daily to completion between 55 and 70 bob.



Posted by: Peter N
30

Others look at cottage industry type value addition…

Elizabeth Suggests Value Addition

value addition is great but where to sell is the issue. think of making yoghurt to compete with the big established companies.

Posted by: Elizabeth K
16

Understanding the bigger picture

Our AFC expert analysts collected data on milk flows around Kenya to bring AFC dairy subscribers something exclusive. Shown below:

The size of the bands shows the volume of milk flow. So you can see that most production is consumed directy (for home consumtion or direct sales). Most of the collection and bulking is handled by Co-ops or Self-help groups.

What’s going on near me?

We aim to collect locations for every single co-op, cooler, dairy and processor in the country. Our database has 350 dairy organisations in it, almost 90% of the estimated total in the country.

Press on the map below to use the map for yourself and look at your local area…

But how do I know if I’m getting a good deal?

Once you understand more about your options and what is in your location, the key is to get up-to-date market price information.

AFC team have developed an important solution for farmers…

AFC Solutions

Each week AFC dairy farming members are asked the price they are selling milk, in what location, and to what buyer (e.g. processor, co-op, broker, or milk bar/atm). We are getting 1000s of reports each week.

These prices are put into a report that allows every member to understand average prices, and highest/lowest prices. As in the example below!



Posted by: AFC
210

AFC Dairy Premium

You may already be trying the AFC Dairy premium FREE trial using our chatbot service. If not, please sign up now!

For those signing up to a full subscription, you get:

  • weekly milk price updates every week
  • weekly cow sales info
  • all topics in this guide unlocked

For those wishing to stay on top of the market in Kenya, it’s a must!


Read more topics

There are number of other important topics in this guide:

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