Soaring feed prices threaten diary industry
Dairy farmers in the country have said while buyers are slashing the price of bulk milk, soaring inflation and shortage of forex are some factors endangering the industry’s future.
The farmers voiced out their concerns during the visit of International Fund for Agricultural Development (Ifad) Regional Director for East and Southern Africa Sara Mbago-Bhunu at Mpemba Milk Bulking Centre in Blantyre on Tuesday.
The farmers also mentioned that the spiraling food prices since the outbreak of war in Ukraine last February, has pushed animal feed prices up due to rising cost of fertiliser for its production.
Margret Ngulambe, who chairs the 780-member bulking group, said animal feed has hit K19 000 per 50 kilogramme (kg) from about K7 000 last year.
She said feed shortage has been further exacerbated by last summer’s poor crop harvest due to Cyclone Freddy.
Ngulambe said: “The disruption of the pandemic saw a rise in milk prices. This, covered dairy farmers’ costs and allowed us to breathe a sigh of relief. But now, the cost of feed is eating into all the gains.
“For example, we are forced to revert to homemade provisions such as grass feed, to stay afloat. However, such feed lowers milk production as the food is not nutritious enough.”
She said the average farm-gate price for milk has been on a downward trajectory in recent months, and currently hovers around K316 per litre.
“Yet we have to pay about K19 000 per 50 kilogramme [kg] bag for imported feed. That’s why government must intervene on animal feed prices or support us to easily access the local feed,” she said.
The global food price rises have been most pronounced with the cereal crops—maize, wheat, rice, sorghum and millet—that comprise the basic diet of billions of people and animals.
Transforming Agriculture through Diversification and Entrepreneurship (Trade) Programme national programme coordinator Felix Lombe, whose organisation is supporting knowledge management of the dairy farmers, said their six-year programme will continue to ensure dairy farmers have the necessary skills to thrive in difficult situations.
He said: “Our role is strengthening value chains and enhance the enabling environment to make it more conducive to rural commercial development.”
On her part, Mbago-Bhunu said Ifad was willing to further support the Trade programme so that more people can benefit and transform their lives.
“We will continue to support the programme and we expect that during my next visit [in two years time]—we will see transformation in other areas.
“During this visit, I was particularly impressed with what the women diary cooperative has achieved and I wanted to encourage them to achieve even more,” she said.
On his part, deputy Minister of Local Government, Unity and Culture Owen Chomanika hailed Ifad for the support to various projects that local councils are implementing with their funding.
Cows in the dairy herd produce between eight and 15 litres a day when in milk, depending on feed and health of the cow.
Of this, an estimated 19 percent of milk is retained by dairy producers for household consumption. Of the remaining 81 percent, just over half is sold through milk bulking centres such as one at Mpemba that deliver to formal processors like Blantyre Dairy 2015 Limited, with the other half sold to informal traders.
