Production of animal feeds has been hit by a shortage of by-products for processing as millers scale back on flour output due to low demand on shop shelves.
Farmers are reporting a shortage of feeds, a situation that is likely to increase prices in the wake of supply constraint.
The Association of Kenya Animal Feeds Manufacturers says the shortage has seen the price of major by-products used in the processing of meals go up significantly.
For instance, a kilo of wheat bran has gone up to Sh34 from Sh17 previously, wheat pollard is now selling at Sh26 from Sh21 while maize germ is going for Sh26 from Sh19 for a kilo, marking the fourth time since the beginning of the year that the costs of these ingredients have been going up.
“The situation has worsened with the shortage of key byproducts impacting on manufacturing of animal feeds,” said Martin Kinoti, the association’s secretary-general.
The shortage has been occasioned by reduced demand from consumers, as most of them have opted to mill their loose flour at posho mills because of financial constraints.
Mr Kinoti said millers had raised the price of feeds last month by Sh100 but they were forced to waive the increment for lack of demand from farmers, who are also struggling with low prices of products such as eggs.
“Millers are now selling at a loss, the regular margin that they used to make has disappeared, the only option remaining is either to sell at a loss or stop milling at all,” he said.
The cost of a 70-kilogramme bag of chick mash has now gone up from Sh3,600 to Sh3,700, grower mash is now selling at Sh3,000 up from Sh2,900 and layers mash is going for Sh3,300 from Sh3,200 last month.
Processors are also grappling with an increase in the cost of other important supplements such as sunflower cake that has gone up from Sh28 to Sh48 at the moment for a kilo. Soya has increased from Sh80 to Sh85 a kilo. Most of these supplements are imported from Tanzania, Uganda and Malawi, and a weaker shilling against the dollar has raised their prices.
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