Dairy farmers in Western Kenya are counting losses after milk processors cut prices as a result of increased production.
The increase has resulted in a lack of market and storage facilities.
Most processors reduced prices by Sh8 from Sh38 to Sh30 per litre, sparking outcry from farmers who complained of high production costs.
This has subjected them to heavy losses.
Private processors warned of further decline in prices as they grapple with the challenges of excess production.
The Kenya Dairy Farmer Federation on Monday said thousands of litres of milk was going to waste.
“Most milk cooperative societies face collapse due to exploitation by private milk processors who are offering as low as Sh30 per litre at farm gate level contrary to agreement entered with the Kenya Dairy Board and Ministry of Agriculture of Sh33 per litre,”KDFF chairperson Stanley Ng'ombe said.
The woes facing dairy farmers have been complicated by skyrocketing cost of animal feeds and poor quality breeds, which keep deteriorating due to the exorbitant cost of Artificial Insemination or Embryo Transplant.
A report by the Ministry of Agriculture shows the country produced an average of 4.2 billion litres of milk last year, against a potential of 12 billion litres due to poor animal husbandry techniques by most farmers.
Ng’ombe, who is also the chairman of Lelchego milk cooling plant in Nandi county, said the firm receives an average of 12,000 litres daily against an operational capacity of 18,000 litres, which has forced them to cut down the intake to minimise losses.
“Post-harvest losses as a result of decline in demand for milk caused by increased production, high operational costs in terms of electricity and transport charges and unsteady cost of animal feeds are some of the challenges facing the sector,” he said.
The farmers petitioned the government to introduce measures, including pumping more funds to the New Kenya Cooperative Creameries.
This will enable the firm to make prompt payments for milk deliveries at affordable rates.
The state-owned company offers Sh55 per litre but delayed payments have discouraged dairy farmers from delivering their milk to the firm.
They urged the government to allocate funds to Agricultural Finance Corporation to be advanced as credit to dairy and grain farmers among other agricultural investments.
“The government needs to improve funding to the dairy sector through AFC and address challenges facing the body that are weighing down farmers’ efforts to increase their milk production and earn better profit,” Mary Jeptoo from Sergoit in Uasin Gishu county said.
The North Rift region has an estimated 1.2 million dairy cows and between 400,000 and 500,000 heifers.