Hasla with milk processors - We finally got a leader

[gout]

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Brilliant. A leader willing to get the best out of other leaders and the masses. This is the way to unlock productivity problem in our society.

[Georgesoros]

Great idea.
But you also need the infrastructure. Microbiologists, Biochemists, etc otherwise I see a serious public heath issue.

[gout]

The coolers will solve sanitary issues at source.

[RV Pundit]

Exactly. Then you hear some wajinga saying Ruto has done nothing. Ruto should continue with sectoral reforms. They will bear fruits in 2-3yrs.

[hk]

From the meeting especially from the latto director the biggest impediment in the sector is cost of production. For processors its taxation on materials(packaging and electricity), farmers its feeds and fodder. The slush fund being proposed to buy excess milk during rainy season wouldn't be necessary if processors lowered prices due to supply, consumption would go up mopping up excess milk. The coolers will lower milk collection cost of processors, are they owned by counties or processors? The quality variation is it relevant enough to create a valuation proposition? Government intervention in sectors always have unintended consequences which distort the market, Ndii better limit government involvement.

 

[Githunguri]

The problem with milk industry is animal feed...In simple language,shida ya mifugo ni nyasi...one hay during dry period goes for 250+,How much milk does one hay produce? The add feed from shops..When you hear there is a drought,It gets worse because with less maize & sunflower harvest means high prrices of animal feed and no thaara...when you add the increase in fuel price,tax increases and high electricity costs,It means smaller margins for both dairy industry and milk processors.

When you add Rutos pride and Ndiis stupidity,The matter gets complicated like the kenya shilling.The last thing a president should do is hold a meeting on dairy industry,you need to have such information on your finger tips...drought,animal feed,fuel,tax,electricity.

[Georgesoros]

Kenyans need to discuss this in a two to three day parliament hearing. Everyone from a 5gal to 50mil gal produce gets a say. You get naysayers, and the overly optimists and in between you develop a long term policy to hand over to agri sector. These fly by night policies fail with tax payers paying heavily. Also, most of the people in this meeting are not in practice, rather management middlemen etc.

[KenyanPlato]

The problem with milk industry is animal feed...In simple language,shida ya mifugo ni nyasi...one hay during dry period goes for 250+,How much milk does one hay produce? The add feed from shops..When you hear there is a drought,It gets worse because with less maize & sunflower harvest means high prrices of animal feed and no thaara...when you add the increase in fuel price,tax increases and high electricity costs,It means smaller margins for both dairy industry and milk processors.

When you add Rutos pride and Ndiis stupidity,The matter gets complicated like the kenya shilling.The last thing a president should do is hold a meeting on dairy industry,you need to have such information on your finger tips...drought,animal feed,fuel,tax,electricity.

Nothing to add. RUTO suffers a of Dunning Kruger syndrome. He wants to micromanage everything. He is going to kill dairy industry with his stupid tantrums..

[gout]

You are getting rusty. Where we are unless government seriously invests in agriculture it can only get worse. We need to see more of government in agriculture across Kenya. We have to disinvest from hotels, KQ and invest heavily in agriculture for next 10-20 years. It is a shame despite population growth our agricultural production was highest in 1990s.

The cost we are paying is too high. No food and if there very expensive. I am certain malnutrition is at its peak. Imports, imports. No jobs. Apathy for millions. 

Government intervention in sectors always have unintended consequences which distort the market, Ndii better limit government involvement.

[gout]

You are irredeemable in your soreness.

President Joe Biden will meet with the chief executives of several large companies on Thursday to get their perspective on the U.S. economy, a White House official said.

https://www.reuters.com/world/us/biden-meet-with-target-ibm-other-ceos-2023-10-12/

When you add Rutos pride and Ndiis stupidity,The matter gets complicated like the kenya shilling.The last thing a president should do is hold a meeting on dairy industry,you need to have such information on your finger tips...drought,animal feed,fuel,tax,electricity.

[Georgesoros]

You are getting rusty. Where we are unless government seriously invests in agriculture it can only get worse. We need to see more of government in agriculture across Kenya. We have to disinvest from hotels, KQ and invest heavily in agriculture for next 10-20 years. It is a shame despite population growth our agricultural production was highest in 1990s.

The cost we are paying is too high. No food and if there very expensive. I am certain malnutrition is at its peak. Imports, imports. No jobs. Apathy for millions. 

Government intervention in sectors always have unintended consequences which distort the market, Ndii better limit government involvement.

policy: Give anyone who wants a soft loan to produce farm products. Help export some of the produtcs. Eurozone is starving. Create a whole new industry to preserve. Freeze and sell. Freezers can run of solar during day and everything stays frozen for up to 24hrs.

[hk]

You are getting rusty. Where we are unless government seriously invests in agriculture it can only get worse. We need to see more of government in agriculture across Kenya. We have to disinvest from hotels, KQ and invest heavily in agriculture for next 10-20 years. It is a shame despite population growth our agricultural production was highest in 1990s.

The cost we are paying is too high. No food and if there very expensive. I am certain malnutrition is at its peak. Imports, imports. No jobs. Apathy for millions. 

Government intervention in sectors always have unintended consequences which distort the market, Ndii better limit government involvement.

Government that's borrowing at 16% for 90days has no business investing in anything. Wholesale privatization of everything even if government gets peanuts for state corporations, it'd be worth it  to rid the economy of the dependency and cronyism. Take something like beef, lamb and goat, to improve productivity all that's needed is fodder, feedlots and genetics. This doent need government investment and the potential is huge for local and export market. 

[RV Pundit]

Well gov cannot invest or divest in this environment.
This fiscal environment is temporary. This long winter is affecting everyone.
For now GoK should go into hibernation mode.
You cant invest. You cannot divest.
Now it time to try to survive and emerge without bankruptcy.

Once GoK is out of the woods - It should divest from useless things - and invest in basic infra+ plus targeted interventions.

On Dairy  - Definitely GoK should invest in building Cooperative Led Smallholder dairy thing - building on KCC/Githunguri/Mt kenya and other such SMall Holder Farming.

The problem in Kenya -  SMALL private sectors plays - CANNOT AND WILL NOT AMOUNT TO MUCH.

We need ECONOMIES OF SCALE - to kick in - and that can only happen if GoK organize small holder dairy into cooperatives that can be able to buy and sell feeds, genetics, VET in bulk and cheaply - buy milk and give farmers LOANS.

Ruto should focus on building Dairy Cooperatives - all affliated to KCC (for BRANDING sake) - just like KTDA model.

Expand KCC - and give farmers shares - through their cooperatives
 

Government that's borrowing at 16% for 90days has no business investing in anything. Wholesale privatization of everything even if government gets peanuts for state corporations, it'd be worth it  to rid the economy of the dependency and cronyism. Take something like beef, lamb and goat, to improve productivity all that's needed is fodder, feedlots and genetics. This doent need government investment and the potential is huge for local and export market. 

[hk]

Well gov cannot invest or divest in this environment.
This fiscal environment is temporary. This long winter is affecting everyone.
For now GoK should go into hibernation mode.
You cant invest. You cannot divest.
Now it time to try to survive and emerge without bankruptcy.

On the contrary, you divest and cut spending to survive and avoid bankruptcy. Consumption per capita for milk is falling as price of milk goes up and incomes stagnates or fall. Most of the milk is unprocessed, consumption of processed milk tracks urbanization and incomes. The processed milk market has to lower price of milk to increase consumption. KTDA model is premised on quality (3 buds), what would be dairy's'?

[RV Pundit]

Who will buy our SOE - when gov are borrowing money and give them crazy returns - NSE is dead as dodo.

I dont see any privitisation happening soon.

As for milk and other industries - the elephant in the room is ECONOMIES OF SCALE - and that is what gov should be trying to achieve

Well gov cannot invest or divest in this environment.
This fiscal environment is temporary. This long winter is affecting everyone.
For now GoK should go into hibernation mode.
You cant invest. You cannot divest.
Now it time to try to survive and emerge without bankruptcy.

On the contrary, you divest and cut spending to survive and avoid bankruptcy. Consumption per capita for milk is falling as price of milk goes up and incomes stagnates or fall. Most of the milk is unprocessed, consumption of processed milk tracks urbanization and incomes. The processed milk market has to lower price of milk to increase consumption. KTDA model is premised on quality (3 buds), what would be dairy's'?

[hk]

Who will buy our SOE - when gov are borrowing money and give them crazy returns - NSE is dead as dodo.

I dont see any privitisation happening soon.

As for milk and other industries - the elephant in the room is ECONOMIES OF SCALE - and that is what gov should be trying to achieve

Well gov cannot invest or divest in this environment.
This fiscal environment is temporary. This long winter is affecting everyone.
For now GoK should go into hibernation mode.
You cant invest. You cannot divest.
Now it time to try to survive and emerge without bankruptcy.

On the contrary, you divest and cut spending to survive and avoid bankruptcy. Consumption per capita for milk is falling as price of milk goes up and incomes stagnates or fall. Most of the milk is unprocessed, consumption of processed milk tracks urbanization and incomes. The processed milk market has to lower price of milk to increase consumption. KTDA model is premised on quality (3 buds), what would be dairy's'?

The ROI on privatized companies has to be high, comparable to bonds and money market earnings. There's plenty of money available but SOE have to be sold at a discount, its the price to pay to avoid defaults. NSE is struggling cause of high interest rates driven by government overborrowing.
The scale you're suggesting is for the processors which is just pasteurization , packaging and marketing. On the production side small scale farmers with 2 cows aren't going to scale, the only solution is consolidation where small scale are driven out of the sector. That's why the meru guy was suggesting something akin to cow boarding dairy.

[Njuri Ncheke]

Exactly. Then you hear some wajinga saying Ruto has done nothing. Ruto should continue with sectoral reforms. They will bear fruits in 2-3yrs.

Ruto should be setting Kenya on an industrialization line not small time, we had soo much hope on him but there is still time lets hope his embracing the west will bear fruits otherwise he and Kenya is doomed, wonder how we sort the 2B Dollar bond bext year june?? Yenyewe Ruto has little to maneuver

[Georgesoros]

Exactly. Then you hear some wajinga saying Ruto has done nothing. Ruto should continue with sectoral reforms. They will bear fruits in 2-3yrs.

Ruto should be setting Kenya on an industrialization line not small time, we had soo much hope on him but there is still time lets hope his embracing the west will bear fruits otherwise he and Kenya is doomed, wonder how we sort the 2B Dollar bond bext year june?? Yenyewe Ruto has little to maneuver

Problem is Ruto appointed dead woods. most dont know anything about policy. Reason why there is a significant economic downturn. Same thing happened in Ghana. Cronyism that led to collapse.

[RV Pundit]

Who will buy our SOE - when gov are borrowing money and give them crazy returns - NSE is dead as dodo.

I dont see any privitisation happening soon.

As for milk and other industries - the elephant in the room is ECONOMIES OF SCALE - and that is what gov should be trying to achieve

Well gov cannot invest or divest in this environment.
This fiscal environment is temporary. This long winter is affecting everyone.
For now GoK should go into hibernation mode.
You cant invest. You cannot divest.
Now it time to try to survive and emerge without bankruptcy.

On the contrary, you divest and cut spending to survive and avoid bankruptcy. Consumption per capita for milk is falling as price of milk goes up and incomes stagnates or fall. Most of the milk is unprocessed, consumption of processed milk tracks urbanization and incomes. The processed milk market has to lower price of milk to increase consumption. KTDA model is premised on quality (3 buds), what would be dairy's'?

The ROI on privatized companies has to be high, comparable to bonds and money market earnings. There's plenty of money available but SOE have to be sold at a discount, its the price to pay to avoid defaults. NSE is struggling cause of high interest rates driven by government overborrowing.
The scale you're suggesting is for the processors which is just pasteurization , packaging and marketing. On the production side small scale farmers with 2 cows aren't going to scale, the only solution is consolidation where small scale are driven out of the sector. That's why the meru guy was suggesting something akin to cow boarding dairy.

I believe small holders farming is hopeless unless organised to achieve economies of scale..kcc used to that.. we just need ktda model...cooperative but with strong governance. That way million of poor farmers can sell their extra 2 litre milk.. aggregated...scales.No scaling.Forget it.

[KenyanPlato]

Kenya dairy industry is biggest success of small holding dairy farming in Africa or the world. We had this debate on rcbown 22 years ago. I got educated on this issue
 Even south African has been visiting kenya trying to see if this model can work for them. UGANDA AND RWANDA copies kenyan model and Uganda has a booming industry too