Challenges persist despite reforms in the dairy sector
It accounts for about 14 per cent of the agricultural gross domestic product (GDP) and 3.5 per cent of the total GDP. The industry is based predominantly on smallholder production, which accounts for about 70 per cent of the total annual milk production, according to a recent report by the regulator, Kenya Dairy Board (KDB).
The dairy sub-sector was liberalised in 1992, giving room to other players to compete with the State-owned parastatal then know as Kenya Cooperative Creameries. However, the dairy sector has performed poorly over the years due to bad policies that left it vulnerable to vagaries of weather.
For instance, the industry is today caught in vicious cycle in which production fluctuates sharply during certain seasons of the year depending on the prevailing weather.... Read the full, comprehensive news article and discuss at Business Daily Africa