Bumper crop headache: Maize farmers turn to hay as hope of better prices dims
A truck with bales of hay in Eldoret, Uasin Gishu County, on December 14, 2022.
Maize farmers in the North Rift are turning to hay production for animal feed after the government ruled out raising prices despite a bumper harvest.
Dairy farmers are set to spend less on animal feed as maize prices fall due to oversupply that has outstripped demand in the local market, with the government ruling out any plans to increase the offered price of Sh4,000 per 90kg bag.
An acre of maize for hay production sells for between Sh70,000 and Sh80,000, which farmers find more attractive than the unstable maize prices.
The government, through the National Cereals and Produce Board (NCPB), has maintained that the maize price will remain at Sh4,000 per 90kg bag as it was last season, despite an expected increase in production from 46 million to 60 million bags.
Dairy farmers in the North Rift region said they had access to cheap fodder after maize prices dropped from Sh6,200 to Sh2,400. Agriculture Principal Secretary (PS) Paul Rono said the government will maintain the Sh4,000 per 90kg bag it offered farmers last season.
“We can now mill our own animal feeds from the low-cost maize and blend it with other raw materials to cut down milk production costs,” said Joshua Kiptoo from Ziwa, Uasin Gishu County.
However, the government has increased the minimum prices that millers pay for top grade wheat by Sh100 to Sh5,300 from last season's Sh5,200.
According to the Agriculture and Food Authority (AFA) review schedule, millers are required to buy 90kg of Grade 1 wheat at Sh5,300 and Grade 2 at Sh5,200, up from Sh5,100. They can negotiate the price of Grade 3 wheat.
“The pricing shall apply as at traditional buying centres of Narok, Nakuru, Eldoret, Nyahururu, and Timau,” said AFA.
According to PS Rono, the Sh4,000 per 90kg of maize will enable farmers to make a profit as they expect to harvest 60 million bags of maize, up from 46 million bags last season.
NCPB purchased 700,000 bags of maize last season at an estimated cost of Sh1.5 million.
However, dairy farmers are relieved as the availability of cheap maize enables them to manufacture their own animal feeds, thereby cutting down on production costs.
“The availability of cheap maize coupled with plenty of hay as a result of the ongoing rains is pushing down the cost of milk production,” said Julius Lagat from Nandi County.
A bale of hay is selling for Sh300 down from Sh360 a few months ago, and the prices are expected to drop further due to plenty of pasture.
Some of the traders dealing in animal products have reduced the cost of fodder with 50kg dairy meal selling for Sh1,800 compared to Sh2,400 a few months ago due to an increase in raw materials.
Dairy farmers in the North Rift region have an estimated 1.2 million dairy cows and between 400,000 and 500,000 heifers.
However, dairy farmers are losing money as thousands of litres of milk worth millions of shillings are wasted due to a lack of market and storage facilities as a result of increased production.
The amount of milk wasted is expected to rise beyond last year's 290 million litres as dairy farmers continue to face market challenges.
Dairy farmers affiliated with the Kenya Dairy Farmer Federation (KDFF) said thousands of litres of milk were going to waste due to lack of storage facilities, while private processors have slashed farm gate prices to below Sh30 per litre as they grapple with the challenges of overproduction.
“Most milk cooperative societies face collapse due to delayed payments from the New KCC and exploitation by private milk processors who are offering as low as Sh20 per litre at farm gate level contrary to an agreement entered with the Kenya Dairy Board and Ministry of Agriculture of Sh33 per litre,” said Stanley Ngombe, KDFF chairperson.
The New KCC is purchasing a litre of milk at Sh50, compared to Sh42 offered by private processors.
