Animal feed prices hit record high due to lack of raw materials

mkurugenzi

Elder Lister
Why can't our farmers grow soyabean, sunflower that are in high demand in the feed industry? Do we have to import raw materials, mpaka omena, from uganda, zambia, TZ, malawi, Europe, Brazil and US? Feed manufacturers are saying the only soyabean and maize they can find is in Europe/USA and is GMO which is banned in Kenya. How sustainable is our poultry, pig, dairy industry if we have to import feed and raw materials all the way from zambia, malawi, europe, US and brazil? Cant the maize farmers who always complain about low prices switch to soyabean and sunflower?


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The high cost has impacted not only pig keepers but also poultry and dairy farmers, who are grappling with one of the highest costs of production to be witnessed in the country.

The costs of animal feeds have been on a steady rise since last year, driven by expensive raw materials that have even made it difficult for those who used to make their own feeds to continue.

Just last week, the cost of feeds went up by Sh100 across all the animal meals following a steep rise in maize prices.

The price of a 70 kilogramme bag of dairy meal has gone up from Sh3,400 in December last year to Sh3,500 currently, chick marsh is retailing at Sh4,300 from Sh4,200 while layers is now selling at Sh3,900 from Sh3,800.

The recent jump marks the highest price to have ever been recorded in the country with millers warning that the cost will continue to go up if the current standoff on the importation of yellow maize is not resolved.

The Association of Kenya Feed Manufacturers (AKefema) says the rising cost is in response to an increase in price of maize that has now hit Sh3,500 for 90 kilogramme bag from Sh2,800 amid a scarcity of supply in the market.

Martin Gatheca, a dairy farmer in Naivasha, has downsized his herd from 300 cows to 150 currently.

Mr Gatheca, who owns Naiposha Farm, said dairy farming has become unviable because of the high cost of feeds, which has seen him cut the amount of feeds he gives his cows.

Mr Gatheca said few animals remain on his farm because of the love that he has for cows and to sustain jobs for a handful of workers.

The farmer is at the moment milking a paltry 56 cows from 140 last year. He sold the cows as he was unable to feed them.

“I have had to cut down on commercial feeds because it is no longer economical. Today I buy a 50 kilogramme bag of feeds at Sh3,000 from Sh1,800 previously,” said Mr Gatheca.

The farmer says he has significantly reduced commercial feeds and he has substituted the protein requirement with Lucerne grass, which is rich in protein.

He said they used to manufacture their own feeds but the costly raw material made them stop.

Caroline Njeri, a manager at the farm, said they have cut the amount of feeds they give to their animals from seven kilos to three, a move that has caused milk yield to drop to about 14 litres from 25 litres previously.

“We really need a quick intervention from the government for us to remain afloat. Times have changed and we need to change,” says Ms Njeri.

“There is a shortage of raw material regionally and the government should allow cheap imports of GMO soya and yellow maize to ease the situation.”

Zachary Munyambu, who has been keeping poultry for the last 18 years has reduced the number of his birds from 3,000 to about 1,000 due to high cost of production, and so is Chris Mwangi who now has 200 birds from 3,000 previously.

“ I reduced the amount of feeds that I used to feed them. This means they took long to mature, hence subjecting us to losses,” said Mr Mwangi.

Kenya relies on imports of sunflower, soya and cottonseed cake to meet the needs of seed manufacturing.

However, the shortage of these ingredients and restriction by some of the source countries has created a serious shortage of these major supplements locally.

The Government of Zambia dealt the feeds industry a blow with suspension in exports of soya bean meal and sunflower seed cake last year.

As a result, 50 animal feed manufacturers have closed shops because of the high cost of production and lack of raw materials.



John Gathogo, Akefema publicity secretary, says at least 20 processors have closed shop this year alone with many more lining up if the situation does not change.

“It has been a difficult time for processors because of the high cost of raw material that has forced them to close,” said Mr Gathogo.

The shortage of the raw material within the East African Community means that Kenya has to import these ingredients from outside the region, Mr Gathogo said.

Therefore, he added, the country should allow the importation of Genetically Modified soya and yellow maize, which is the only one that can be found in the market right now.

“There is a serious shortage of important raw material and we need to import them from European countries where they are in plenty. The problem is that they are GMO and the government has restricted shipping in of this variety,” he said.

The government last year allowed the importation of duty-free yellow maize, but the stringent measures put in place has made it impossible for traders to bring in the produce.

The importers are unable to commence the process as they cannot find produce that is 100 percent non-GMO as a requirement.
 

Aviator

Elder Lister
They are high compared to what we get regionally. Because cost of manufacturing is high here, plus the market is flooded with cheap imports from elsewhere making our products uncompetitive.

If imports of products are restricted, then an egg can comfortably cost 15 bob which would make sense with the current high prices of feeds
 

Budspencer

Elder Lister
They said animal feed imports would be exempted from import duty. What happened? Fertilizer (NPK, DAP now at 6k per 50kg bag na bado. I pity the guy taking over in September.
 

mkurugenzi

Elder Lister
They said animal feed imports would be exempted from import duty. What happened? Fertilizer (NPK, DAP now at 6k per 50kg bag na bado. I pity the guy taking over in September.
What happened to the fertiliser factory hapo ngeria eldoret coz it was supposed to reduce the price of fertiliser drastically?

Animal feeds raw material were exempted from duty but the only soya bean and yellow maize available in the international market is GMO and kenya doesn't allow GMO feed or food.
 
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