Upload
african-livestock-conference-and-exhibition-alice-2014
View
180
Download
0
Embed Size (px)
Citation preview
04/12/2023 1
REPUBLIC OF KENYA
04/12/2023 2
Dairy Processing and Marketing in East African Dairy Value Chains: Opportunities and Challenges
Michael N.I. Lokuruka, Ph.D.Associate Professor of Food Science, Karatina University, and Commissioner, Public Service Commission of Kenya
04/12/2023 3
Global Dairy Status and Outlook
Current Global Production about 800 mill MTFastest growing Food sectorAfrica produces about 7-8% of global milk
output (HE VP of Rep of Uganda about 4%)Africa World trade share of dairy products
only 0.2%-Opportunity and yet a ChallengeAfrican output of milk and dairy products
growing (era of “white gold” to 2050)East African Status-better compared to other
African regions but need to do more apparent
04/12/2023 4
East African Dairy Status and OutlookEast African output of milk about 8
billion liters (8 million MT) about 8% of African output
Egypt is Africa’s leading milk producer-using intensive scientific dairy farming along the Nile (Challenge to Nile Basin Countries)
Kenya is East African leader with declining order of Tanzania, Uganda, Rwanda and Burundi (Uganda likely to overtake Tanzania!)
04/12/2023 5
East African Dairy Status and OutlookSouth Sudan has best potential
for higher output among EAC block countries
Major dairy products-both short-life and long-life
Include processed milk, fermented products, butter, skim milk, cheeses, milk powders in the declining order by volume
04/12/2023 6
Opportunities in EA Dairy Value Chains
High populations of 141 mill going to 240 mill by 2025; growth rate across region of 2.6%/annum, so market is assured but what of purchasing power?
Meeting domestic demand is the EAC countries main pre-occupation
Export potential existsHigh unmet demand, <12% of
production processed even in Kenya the region’s highest producer of milk
04/12/2023 7
Opportunities in EA Dairy Value Chains
No restrictions on milk consumption except for Hindus and few strict-vegetarians, who don’t consume milk
High and increasing dairy herd numbers
Improving animal husbandry, breeding and health practices
Liberalization of the dairy sector-Governments are facilitators virtually no product or ingredient price controls exist currently
04/12/2023 8
Opportunities Contd. Manpower needs assured-training of
dairy technologists and business courses in local Universities
Potential of Intra-African and Africa-East trade due to non-tariff barriers in Europe, USA and other Western democracies
Increasing financial service providers for sector support (MFIs-SACCOs, etc.)
Technology and Science support improving-zero grazing, AI, disease control, processing; etc.
04/12/2023 9
Production ChallengesInadequate and low quality local
feeds Poor farm and off-farm business
management practicesHigh milk and product losses due
to lack of cold facilities on farm, and in transit to processing facilities
Low deliveries-low installed processing capacity
04/12/2023 10
Production Challenges contd. Inadequate and expensive
veterinary extension servicesLow yielding dairy herds-breeding
strategyLow uptake of financial services-
expensive, collateral, etc. Growing scarcity of agricultural
landIntensive systems need scientific
knowledge application-extensive favored
04/12/2023 11
Processing challengesInadequate installed processing
capacity-due to expensive imported machinery
Inadequate dairy technologists and food engineers
Waste of by-products, e.g., whey; loss of value and environmental pollution
High energy costs-expensive products, low margins
Processing machinery imported and is expensive
04/12/2023 12
Processing challenges contd.
Low milk deliveries to processors-due to low prices paid to farmers for deliveries; Hawking milk
Delayed payments to farmers by processors vs. COD by hawkers
Poor quality and inadequate water for processing
Restricted consumer product choices-low diversification by processors
04/12/2023 13
Marketing opportunitiesMilk has wide acceptance as food among
many consumersIncreasing marketability potential for other
species milk -goat, sheep, donkey, camel, llama, etc.
Increasing cold facilities for end-products in transit to market or at storage waiting for sale
Improving quality of dairy products-raises demand
Knowledge of health-giving properties of milk and dairy products-raises and maintains demand
04/12/2023 14
Challenges in dairy marketingLack or inadequate cold preservation
facilitiesLong distances between processing
facilities and markets-loss of products, expensive products
Poor rail or road infrastructure between producers and markets
Lack of markets-purchasing power, Mismatch of product and consumer
needs-characteristics, type of product, quality, price
04/12/2023 15
Recommendations for EA dairy value chain growth
Invest in training of dairy scientists and technologists, food engineers, business savvy entrepreneurs
Invest in dairy research appropriate for region
Raise production, improve infrastructure, quality and extension services
04/12/2023 16
Recommendations for EA dairy value chain growth
Keep energy costs low and use green renewable energy
Enforce best business practices, decentralize regulatory services and enforce demands by Importers
March consumer needs, purchasing power, with products produced and marketing
Value of Extension Services-knowledge and information transfer, sharing, policy implementation
Sustainability of the Study Area, Food Production and Enterprise-Schools, Consumers, Farmers
04/12/2023 17
AcknowledgmentsThe Host Country Committee of
ALICE 2014Special gratitude for Mr. Peter
Ngaruiya-Executive Director of ESADA and Programme Leader for ALICE
My employers the PSC for permission to be here
Audience for taking time to listen
QUESTIONS
04/12/2023 18
19
Thank You