Mkulima today several individuals are struggling with the high cost of the ever-growing living standards and covid 19 has not made it any easier. Farmers will have to dig deeper in order to help take care of their families. The high cost of production is the leading reason why you will pay more for your animal feeds in 2021.
The cost of making animal feeds has gone up for the third time in three months, forcing up to 20 manufacturers to close shop amid low demand from farmers due to pricing.
One of the main reasons for this is the high cost of production experienced by feed manufacturers while there is reduced demand from farmers.
Due to increased prices, several farmers cannot afford the high prices for the feeds. Soya one of the main ingredients in feed manufacture in the past few months has experienced high prices and the price increased from shillings 53 to shillings 83 from the beginning of December.
This is according to Joseph Karuri, the chairman of the Association of Kenya Animal Feeds Manufacturers.
Soya is the most expensive supplement out of the raw materials used in making animal feeds.
The 57 percent jump in the price of soya is the biggest in the last two years with manufacturers projecting that the earliest the cost will come down in May.
As a result of the steep jump in production costs, several feed manufacturers have been forced to close shop leading to huge job losses in the sector since they cannot sustain the ever-rising cost of the material.
These changes have affected most of the animal feeds and have resulted in an increase in the retail price of about Kenya shillings 100 per bag.
The cost of a 70-kilogram bag of chick mash has risen from Sh3,600 to Sh3,700, grower’s mash is now selling at Sh3,000 up from Sh2,900 while that for layers is going for Sh3,300 from Sh3,200 last month.
This move has hit farmers as the price of eggs has so far dropped from a high of Sh360 a tray early in the year to Sh340.
This implies that the producers are struggling with lower margins, making it difficult to continue with the business.
Mr. Karuri said most millers are concerned with breaking even to pay their workers and keep on running their entities profitably.4
The millers have reached a point where they can no longer increase the cost of animal feeds as the current prices have had a direct effect on demand, Mr. Karuri.
The processors are also projecting that the cost of other major supplements such as sunflower cake, which is mainly imported from Tanzania and Uganda, will go up due to a weaker shilling against the dollar.
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