The dairy industry in Kenya is one of the largest and advanced in Africa, with an estimated 5 billion litres produced in the country.
A recent study showed that Kenya leads Sub-Saharan Africa on per-capita milk consumption and leads globally among developing countries. With the continuous population growth and the expansion of the middle class, it’s estimated that by 2030 each Kenyan will consume double their current consumption of milk and milk products, currently estimated to be 111 litres per year.
The dairy industry in Kenya leads in East Africa and is the fastest-growing single sub-sector in agriculture in the country.
It accounts for approximately 14% of agricultural GDP and an estimated 1 million jobs at farm level.The sector has great potential for growth, but despite the high investment into it, the sector is yet to achieve its full potential.
Four key challenges that affect entrepreneurs within this sector include:
- Seasonal fluctuation of production which affects the processors’ ability to absorb all the milk, leading to periods of surplus followed shortly by that of low volumes
- Low milk production
- Operating below optimal capacity, leading to lower incomes
- Poor farm management: Many farms rely on farm managers, yet the managers lack the strategic level of knowledge to drive the vision of the owners