Kenya imports milk from Uganda to meet shortfall

Posted on : Wednesday , 23rd September 2015

It is now emerging that Kenya imports milk from Uganda to meet its shortfall.
Statistics show that Kenya bought milk worth Sh520 million from Uganda last year.
On its part, Kenya sold dairy products valued at Sh290 million to Uganda during the period.
The milk imported by Kenyan firms is mainly in powder form and is meant to safeguard the processors’ market share during the dry season when local supplies are low.
Data from the East and Southern African Dairy Association shows that the milk deficit is caused by high consumption among Kenyans.
Ugandans, the statistics show, do not consume as much milk products as their Kenyan counterparts.
Local processors are also taking advantage of the East African trade pacts to sell their products to the regional markets, leaving local consumers with a shortfall.

The processors last year sold milk products worth Sh821 million to regional markets.

World Health Organisation’s statistics indicate that on average Kenyans drink 110 litres of milk per person yearly.

Acute lack of milk during dry spells has created an untapped market for powdered milk.

This is where Uganda’s Pearl Dairy, the largest powdered milk maker in East Africa, is cashing in on.
The company’s chief executive Mr Atul Chaturvedi told Smart Company that the increasing purchasing power among Kenyans has created a ready market for quality milk products.

“We urge people to continue consuming processed milk that is free from adulteration and harmful bacteria associated with raw milk,” he said.
Mr Chatruvedi said Brookside Dairies is one their largest local partners adding that they sell their Lato milk powder to all processors in Kenya where they have established a loyal customer base.
“We supply milk powder as a raw material to Kenyan milk processors,” he said.
Pearl Dairy solely deals in powdered milk production.
Mr Chaturvedi says Pearl Dairy has greatly benefited from the growing intra-regional trade.
He said Kenyan processors used to import powdered milk from European countries.
However, the supplies from Europe were subjected to heavy import duty and transportation costs which were passed on to consumers.
“We saw this gap to push for a win-win strategy where we source for milk locally, process it into powder and export it regionally. The milk is then processed and resold to other countries where member countries earn revenue from taxes directly to their respective exchequers,” he says.
ESADA’s chairman Kipkurui Arap Langat said entry of the Ugandan company into the Kenyan market has ensured availability of milk throughout the year, especially during dry season.
“ESADA will be pushing for inclusion of milk as among the items to be given priority at the one-stop border customs points. You cannot keep milk trucks waiting for days as that would mean hefty losses for dairy companies,” he said.
“We need to look at ways of encouraging our dairy companies to carry out trade within the region which will take integration to a whole new exciting level where commerce thrives.”
The East African market, said Chaturvedi, is experiencing notable growth in dairy consumption. This, he added is attributable to a growing middle class that live in cities and urban areas where raw milk is hard to find.