Milk supply. Why data tells only half the story

The dairy industry in Kenya is a significant agricultural sub-sector contributing to the national economy, household incomes and food security. It contributes 40 per cent to the agricultural GDP and 4 per cent to the overall Kenya GDP. Therefore, a developed dairy industry would meaningfully respond to the current food crisis, occasioned by high consumer prices of key daily consumables.

Kenya’s milk market is bi-sectoral, that is, formal and informal. However, data shows that in Kenya, Uganda, Rwanda and India, informal dairy market dominates. For example, about 86 per cent of Kenya’s milk estimated at 5.2 billion litres annually is sold by unorganised, small-scale businesses in informal markets or consumed directly at home.