You don’t have to be a math guru, but you must know how profitable is dairy farming in Kenya considering your investment expenses and return cost in the simple way possible. It’s all here.
Beginner farmers may want to know in what manner dairy farming might profit them. Since dairy farming involves milk production daily, farmers are able to make to increase their savings from sold milk daily. Dairy farming in Kenya has helped farmers accelerate in terms of financial strength.
How profitable is dairy farming in Kenya? Dairy farming in Kenya is very profitable. On average, a single well-fed dairy cow can give the farmer up to 30 liters of milk in a day. In the Kenyan market, a liter of milk goes at around Ksh. 60. In a single day, the farmer earns not less Ksh. 1,800. In one year a hybrid cow can result in an estimated net profit of Ksh. 407,000 assuming all factors are constant.
Depending on the dairy breed, there are improved breeds that give the farmer more liters of milk. The smart farm has also increased the amount of milk production with the use of modern technology.
In order to have a better picture of how profitable dairy farming is, you need to factor in the cost of production, and realizable returns. The difference shows the profit as shown in the following tables.
Dairy Farming In Kenya Investment Expenses
Below is a table showing the summary of profitable dairy farming and estimated cost of production/investment, returns, and estimated profits within a single year.
The tables analyze the total expenditure a farmer may incur in caring for a raising a mature dairy cow, from the day of purchase until the time they start earning from the milk. Lucrative profits can be realized especially with an improved dairy breed.
Table showing the cost of production for a single dairy cow.
| Requirements | Approximate Expenses |
| A dairy cow with average price | Ksh 80,000 |
| Calving | Ksh 20,000 |
| Feeds Immunization and other treatment | Ksh 20,000 |
| Feeds | Ksh 50,000 |
| Insemination | Ksh 1,000 |
| Labor | Ksh 60,000 |
| Miscellaneous | Ksh 100,000 |
| Total investment cost | Ksh 331,000 |
Dairy Farming In Kenya Expected Returns
Table showing returns from dairy farming is in Kenya.
| Dairy product | Production | Approximate Returns |
| Milk | An average of 30 liters per day, Each liter is charged at Ksh. 60 | Ksh. 648,000 |
| Calf | A single calf | Ksh. 30,000 |
| Manure | 2 Bags per month Each bag currently costs Ksh. 2,500 | Ksh. 60,000 |
| Gross Income | Ksh. 748,000 |
Dairy Farming Profits In Kenya
Table showing gross profit from dairy farming in a year
| Cost of production | Gross Returns in a years’ time | Net Profit |
| Ksh. 331,000 | Ksh. 748,000 | Ksh. 407, 0000 |
Practicing Dairy Farming In Kenya
Small Scale Dairy Farming
Small-scale dairy farming in Kenya has overtaken the business in large numbers. The farming system is practiced both in the urban and rural parts of the country. Small-scale farmers secure their markets to the surrounding communities and other shop vendors.
Apart from the milk, small-scale farmers can also benefit from selling other milk products such as cream and cheese. Although small-scale farmers charge the milk per, liter there are other smaller units allocated at an affordable price for people with low livelihoods.
Large Scale Dairy Farming
Large-scale farming in Kenya has contributed to the country’s economic status. Most farming in large-scale dairy production started as a small- small-scale system of production. Through proper planning and initiation of a good financial management system, they accelerated to a desirable height.
Since dairy farming in Kenya comes with daily income, progressive financial growth is assured to the farmer. Milk being an essential product used in almost all homes, the ready market is guaranteed to farmers across the country.
Most young beginner farmers may evade investing in dairy farming due to the high cost of starting and maintaining the project. Even so, more farmers are called on board to help increase the amounts of milk production.
8. Benefits Of Dairy Farming In Kenya
There are several benefits farmers encounter in the dairy farming business, such as;
1. Health Benefits
Milk is rich in proteins, calcium, vitamins B, among others. Milk consumption has contributed to the citizen’s good health.
2. Diverse Milk Products
Excess milk is used to process different food varieties such as yogurt, ice cream, butter, cream, and cakes.
3. Improved Socio-Economic Status
Milk production in Kenya has greatly enhanced the socio-economic balance of the country in the East African region.
4. Improved Infrastructure
Roads and communication networks have grown to fit the modern development system from production to distribution. Resultantly, access and safe delivery of milk has been assured at the shortest time possible.
5. Creation of Employment Opportunities
The dairy farming system has curd the question of unemployment among Kenyans.
6. Growth of Research Centers
Several research centers have emerged with modern researches on dairy farm production. The Kenyan system has also improved the education system in terms of animal handling and milk production management.
7. Better Breeds Discovery
Through lots of research, the ministry of agriculture has improved dairy bread that is highly resistant to diseases and other climatic conditions. Smart farm has also improved milk production.
8. Development of Production Industries
Increased milk production has led several companies to help reduce wastage by ensuring the milk is well preserved for future use. The companies also distribute the excess milk to other areas with milk insufficiency. The preservation includes turning the mink into powder form to last long in areas prone to extreme temperatures.
Dairy Companies In Kenya
In Kenya, companies that demand high supply of milk include:
- Brookside Dairy limited
- Kenya Creameries Cooperative,
- Mt. Kenya Dairies
- Kinangop Dairy Limited among others.
Conclusion
Dairy farming in Kenya is a profitable business that has been tried for decades. Dairy farming has ranked the country in better positions in the agricultural sector. Large-scale dairy farming and small-scale dairy farming have always been depended on as one of the best ways to generate income. Smart farm in Kenya has helped increase milk yield per cow per day.
Related
- Smart Dairy Farming In Kenya | Best Technology For Your Farm
- Cost Of Starting Dairy Farming In Kenya | Calculations
- Successful Dairy Farming In Kenya | What It Takes To Succeed
- Large Scale Dairy Farming In Kenya | Smart Farm To Success
- Small Scale Dairy Farming In Kenya | Startup Cost, Profits
- How To Start A Dairy Farm In Kenya Successfully And Prosper
