News 9 commentsupdate:Oct 25, 2011

Kenyan poultry farmers hit hard by rising feed costs

Animal feed manufacturers all over Kenya are shutting their doors and many others are operating at half capacity and struggling to cover their costs, according to the Association of Kenya Feed Manufacturers (Akefema).

Due to a shortage of grain, by-products and oil cakes and price of animal feed has on average, increased by up to 94% since October 2010. The result being an increase in the cost of animal feeds to a point where most farmers are not able to sustain their livestock. Farmers are currently managing their animals at a loss and as a result many have already started to reduce numbers, especially in poultry.

Akefema has on several occasions alerted the government to the critical consequences facing the livestock industry if no action is taken. Akefema feels that there are some urgent issues in the livestock industry that need immediate government attention to ensure continued viability.

The current shortage of raw materials threatens livestock production and hence farmers livelihood and the people who depend directly and indirectly on the industry.

Editor WorldPoultry


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    Zakayo Kinyanjui

    I agree totally. Just as the price of grains for human consumption have risen, animal feeds have too. The government should consider lowering import duty to save the majority of the population, at least until harvest time. It is really a loss to livestock farmers. the effect is made worse by the on going la nina drought which has reduced pasture availability.

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    This is true and unfortunately the price of poultry had not increased cos poultry is still being bought at Ksh 280/ piece or Ksh 220/kg. Urgent intervention is required.

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    Margaret's observation on static prices for broilers is correct and very alarming as it means that the rising costs are now eating directly into the farmers already slim margins. This very discouraging to the farmers and many have opted to stop or reduce production. Strangely, the price of eggs has adjusted upward in tandem with rising feed prices. So why is the egg market responsive to market pressures and not the broiler market ? could it be the dominance of the broiler market by one commercial producer ? we do have some law against monopolies and anticompetitive practices don't we ? May be its time the market was analyzed and some decisions taken. Affected farmer.

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    John Mwangi

    Poultry farmers are greatly affected and the government of the day should intervene and make sure something is done. The person who suffers in all what is happening is the farmer since he feeds the birds with 94 % cost of production and the eggs price still stagnant at 230-240 per crate wholesale. Akefema also needs to regulate the price of poultry products at least to safe-guard the innocent farmer from being exploited. That way same farmers will contribute to vision 2030 vision effectively.

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    James Ave

    This is very true even here in south east asia where 70 percent of feed ingredients are imported and solely dependent on them. We in the industry are looking for alternative sources to reduce cost of feeds just enough to compensate the rapid increase of ingredient prices. Corn being one of the major source of energy in feeds has been converted into ethanol production thus limiting its supply for the feed industry here in the Philippines, more so the price of Soya meal price from the US and Agentina is also fluctuating. this is a problem that concerns all, we are dependent on the produce of our farmers, and if we don't take actions, our people will suffer.

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    Michael Neve

    All over the World Feed Cost is at a rise, Feeds Producers are losing yet our customers do not want to accept any price adjustments even though it is directly proportional to impute cost, funny they themselves do not want to lose even a cent. Clients should know that we only process row materials we do not produce them and we have no control over their prices. (Michael Neve form RSA)

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    Why isn't possible by the feed manufacturers/ government to initiate the import of certain key ingredients which ultimately increase the price of the Animal feed.

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    The above is very true. Chicken farmers have been adversely affected.
    Whereas the price of chicken feeds has more than doubled, broiler meat has remained where it was five years ago. Interestingly, chicken meat prices in supermarkets and hotels have tripled. In addition to this, broiler chicken growth has been affected, even after feeding the chicks with the feeds from branded companies like Unga Ltd. Ironically the prices of beef, goat and even fish has been adjusted upwards. Many farmers have now given up while waiting for a solution from God-knows-where. Affected farmer

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    The Kenya Poultry Farmers Association needs to organize poultry producers and lobby for better pricing of products in the market. Producers should also work with the feed manufacturers on quality feeds. With organised producer groups comes economies of scale which will result in savings. The issue boils down to value for money. Prices of other commodities have also gone up e.g. power, fuel, medication etc. Organized groups will be more efficient and effective at lobbying.

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