Dairy farmers energised by tax removal on animal feeds

Dairy Farmers are counting down the days when the National Budget will be fully implemented so they can finally start making a profit on their ventures.
For Peter Njoroge, a dairy farmer based in Mukurweini, Nyeri County is a happy man, after Treasury Cabinet Secretary Henry Rotich announced plans to scrap taxes on animal feeds.

Njoroge has 10 Dairy cows and each day he spends a total of Sh 6,750 on animal feeds.
These include 70kgs bag of Dairy Meal at a cost of Sh2200, Pollard at Sh1400, Maize germ at Sh 1,400 bran at 800 and minerals supplements at Sh 950.
Each of his 10 cows must consume at least five kilogrammes of the feeds for Njoroge to ensure that each animal produces between 30 to 40 litres of milk a day.
"The cost of animal feeds is one of the largest hindrances for dairy farming because it makes it impossible to realise profit from the sale of milk and other products," Njoroge said.
Now with the removal of taxes which were between 10 to 20 percent, the cost is expected to reduce significantly.
"Each month I spend Sh 202,500 on animal feeds if the taxes are reduced I expect I will save between Sh 30,000 to Sh 20,000 per month," Njoroge said.
This is a welcome relief, to Njoroge as a farmer who said he was hoping the prices would come down as soon as possible.
For Animal feeds manufacturers such as Dr James Gakuo, the exemption from taxes is a welcome relief for both firms and farmers.
Gakuo is Managing director of Kiganjo based FirstChoice Nutrifeeds also owns feedlots which focus on fattening beef cattle.