Cost Of Starting Dairy Farming In Kenya | Calculations

Know the cost of starting dairy farming in Kenya from scratch including expenses and running cost with expected profits in the end. Also, get to know factors that affect your dairy farming cost.

The cost of starting dairy farming in Kenya is a bit costly, with not less than 150 for raising a single cow to the first harvest. Most beginner farmers in dairy farming in Kenya prefer starting from a small-scale level to rising to medium and large-scale productions due to high costs.

A close comparison on the cost to start a dairy farm on a large-scale basis and manage a small-scale expansion is almost the same. However, a small-scale production system gives the farmer time to adjust in case of financial insufficiency.

Cost Of Starting Dairy Farming In Kenya First Time

With the assumption you are just starting you may wonder, how much is a dairy cow in Kenya? A mature dairy cow can cost a farmer not less than Ksh. 80,000 for a big adult cow of high quality breed.

Besides, a slight variation may occur due to differences in the cow’s size, age, and type of breed. Cow increases with an increase in quality production of the species.

Then the table below shows the expenses you can incur as a first-time farmer

Requirements	Charges
1 Dairy cow	Approximately Ksh. 80,000
Calving	Approximately Ksh. 20,000
Insemination	Approximately Ksh. 1,000
Labor	Approximately Ksh. 60,000
Animal health and immunization	Approximately Ksh. 20,000
Feeds	Approximately Ksh. 50,000
Miscellaneous	Approximately Ksh. 100,000
Total cost	Ksh. 331,000

Cost to start a dairy farm

Expected Earnings From Your Dairy Farm

The following table analyzes the income earned from the cow’s products without the cost of the land. Thus, a clear picture of possible income received from starting a dairy farm with one cow.

Dairy product	Quantity	Charges
Milk	An average of 30 liters per day, Each liter is charged at Ksh. 60	Approximately Ksh. 648,000
Manure	2 Bags per month Each bag currently costs Ksh. 2,500	Approximately Ksh. 60,000
Calf	A single calf	Approximately Ksh. 30,000
Total		Ksh. 748,000

Earnings From Dairy Cow

Expected Gross Profit From Your Dairy Farm

Table showing an approximate gross profit from dairy farming

Cost of production	Returns in a years’ time	Gross profit
Ksh. 331,000	Ksh. 748,000	Ksh. 407, 0000

Gross Profit From Dairy Farming

Calculate The Cost Of Starting A Dairy Farm

There are several ways a farmer with intentions of establishing a dairy farm can estimate the cost of creating the entire farm. One of the easiest ways is finding the total cost of rearing a single dairy cow from construction to shade to the first harvest.

The farmer can then weigh the number of cattle that can be raised according to the farmland capacity. Therefore, the cost of raising one cattle can be multiplied by the number of dairy cattle to be reared.

Farmers may need to calculate the cost of starting a dairy farm and gauge their financial capacity. There are several aspects a farmer may need to consider before putting up the firm.

Some of the most basic requirements that require financial monitoring by a farmer include;

Farming Area

The farming area should be well analyzed depending on the type of farming system the farmer intends to use, whether confined non confined. If the farm area is bought or to be rented, the cost should be included.

Number Of Cattle

The farmer should estimate the total number of dairy cattle that can be accommodated in the farm area. The estimated number be lower or overestimated to avoid miscalculation. Find out the government’s regulations on the number of cattle that should be allowed per acre.

Maintenance Cost

The farmer may need to estimate the total maintenance cost per animal. Some breeds require high maintenance cost while other have it lesser.

Equipment

Some farmers can choose to lease while others purchase the kind of selected equipment in use. Some farm equipment is highly charged than others depending on the service. The kit may be;

Labor

The farmer should accurately determine the number of employees to attend to the cattle. Some farmers prefer a few human laborers who are trained to operate the dairy types of machinery. Beginner farmers should understand that dairy labor is equally expensive due to cleaning, feeding, milking, among other duties.

Licensing

The farmer must determine if the business needs to be licensed to avoid conflicts with the local government. The business should be allowed to operate without any forms of illegality.

Feeds

The farmer should select and verify a trusted dairy feeds supplier who can guarantee quality and reliable feeds whenever required. To avoid common mistakes on the meals, the farmer can consult a recommended supplier from other dairy farmers.

Cattle Insurance

The farmer should weigh the essence of finding a liable insurance company to ensure the cattle against uncertainties. The business should be covered to avoid losses to the farmer in case.

Miscellaneous

The farmer should consider inevitable costs such as; marketing strategies, transport, distributing of the milk, Preservation, and value addition of the milk.

Conclusion

It is evident that the cost of starting a dairy farm may be overwhelming to some farmers. However, a successful dairy farmers in Kenya has proved that the business is lucrative and rewarding. The key to the stable progress of dairy farm returns is proper management of your farm, and expenditures.

Check Farm Tips