Secret Layers

Tag: Feed formulation

  • 5 POWERFUL SOLUTIONS TO HIGH ANIMAL FEED COSTS IN KENYA

    How do you reduce feed costs on your farm?

    It’s the million dollar question every poultry and livestock farmer in Kenya is asking right now.

    Finding solutions to high animal feed costs in Kenya is urgent for every poultry and livestock farmer.

    Feed prices often take up to 70% of production costs, leaving farmers struggling to stay profitable. The 2024 Competition Authority of Kenya (CAK) report shows maize, soybean, and sunflower products have risen by over 30% in just two years.

    Last week, I shared the 7 main reasons why animal feed costs are high in Kenya.

    If you missed it, you can read that article here and also check out the official CAK report.

    Today, I’ll share my 5 practical and industry-level recommendations for solving this problem for good. These are not the usual “grow your own azolla” or “use black soldier fly” tips. They are strategies that, if implemented, can make farming more profitable — especially for layers farmers, which is what Secret Layers specializes in.

    The first three ideas focus on reducing feed costs directly. The last two focus on increasing the price you can charge for your eggs, so even if feed prices stay high, you remain profitable.

    1. GO BIG

    Big(200m long 2 floor chicken house)
    Going big gives you an edge in sourcing and formulating feeds.

    Scaling up is one of the fastest ways to cut feed costs. Larger farms can negotiate better prices with suppliers because they buy in bulk.

    Hypothetical example:
    Imagine you have 5,000 layers. Instead of buying feed in 50 kg bags, you order a full truckload. Your supplier might offer you a 5–10% discount for the bigger order. That’s money saved before the feed even reaches your store.

    Farmer action: If expanding your flock is not realistic, join or form a cooperative. When multiple farmers buy together, they gain the same bulk-buying power as a large farm.

    Stakeholder action: Support cooperative models by offering bulk storage facilities, transport discounts, or collective purchasing agreements.

    2. FORMULATE YOUR OWN FEEDS

    Making your own feeds can lower your expenses because you are sourcing raw materials directly and avoiding retail markups. This is one of the most effective poultry feed cost solutions available to Kenyan farmers.

    What to consider before starting:

    Can you source maize, sunflower cake, or soybean meal at good prices?

    Do you understand feed formulation for layers so you meet nutritional needs?

    Hypothetical example:
    Let’s say you have 1,500 layers. You decide to mix your own layers mash using maize bran, sunflower cake, and premixes bought directly from a miller. This could cut your feed costs by around 15–20% compared to agrovet prices.

    Farmer action: Learn feed formulation from extension officers or trusted training providers. If the investment in mixers is too high, share equipment with other farmers.

    Stakeholder action: Offer accessible training and affordable leasing of feed-mixing equipment to farmer groups.

    3. PRODUCE OUR OWN FEED INPUTS

    We can reduce feeds prices by producing our own farm inputs.Like such maize production at Galana-Kulalu.
    Massive maize production at Galana-Kulalu in Kenya.We can do the same for sunflower, soya beans and have our own feeds inputs.

    Kenya imports a lot of maize, sunflower, and soybeans for feed manufacturing. While countries like Uganda or Zambia may have larger production areas, we can still increase our own supply.

    By producing these crops locally and processing them into sunflower cake or soybean meal, we reduce dependence on imports and stabilize prices.

    Hypothetical example:
    A group of 10 poultry farmers could partner with crop farmers to grow sunflower on 50 acres. The harvest could then be processed locally, giving them cheaper sunflower cake than the market price.

    Farmer action: Secure long-term contracts with maize, sunflower, or soybean growers in your region to guarantee feed input supply.

    Stakeholder action: Create incentives for local feed input production including subsidies, irrigation programs and assured market purchases.

    4. VALUE ADDITION

    We don’t have to keep selling eggs for less than Ksh 500 per tray. Through value addition, you can sell your eggs at much higher prices. Processing eggs into liquid, powdered, or specialty products for bakeries, pharmaceutical companies, and retailers allows you to charge more.

    Hypothetical example:
    If you partner with other farmers to invest in a small pasteurization unit, you could supply bakeries with liquid eggs at prices that translate to more than Ksh.1500 per tray in value.

    Here’s Fridah Kaaria who processes liquid eggs in Central Kenya.

    Value addition of eggs - Pasteurized liquid eggs processed by Fridah Kaaria an entrepreneur in Kenya
    Pasteurized eggs processed by Fridah Kaaria an entrepreneur in Kenya.One 250ml bottle goes for Ksh.350(2021)


    Farmer action: Form groups to share the cost of processing equipment or supply your eggs to existing processors.

    Stakeholder action: Provide technical training for value-added egg production and help farmers access certified processing facilities.

    5. EXPORT OUR EGG PRODUCTS

    If Kenya can export coffee, tea, and miraa, we can also export eggs and processed egg products. Powdered and liquid eggs have long shelf lives and can be shipped regionally and internationally.

    Hypothetical example:
    A farmer cooperative could package powdered eggs and target markets in Rwanda, South Sudan, or even the Middle East. The cooperative could fetch premium prices if it meets export quality standards.

    Farmer action: Focus on producing clean, high-quality eggs and join export-ready farmer groups.

    Stakeholder action: Streamline export regulations for egg products and secure trade agreements with target countries.

    REALITY CHECK : THE ROAD AHEAD

    None of these solutions will happen instantly. Bulk buying requires capital. Feed formulation needs training. Exporting calls for regulatory support. But they are all achievable if farmers and stakeholders take coordinated steps. Even small actions today can lead to big changes in the industry.

    WHAT CAN YOU DO TODAY?

    Choose one or two strategies you can start working on now. Maybe that’s joining a buying cooperative, planting your own maize for feed, or exploring value addition opportunities.

    The goal is not just to make more money, but to build a stronger, more resilient poultry industry in Kenya.

    By applying these solutions to high animal feed costs in Kenya, we can create lasting change for farmers across the country.

    WAIT!

    Enter your details to grab a copy of my free guide and regular Layer Chicken Digest tips via email:

    “6 SIMPLE STEPS TO START A PROFITABLE LAYER POULTRY FARM”

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    See you next Friday!

    Carlos Deche

    secretlayerske@gmail.com

    carlosdeche4040@gmail.com

  • Why Animal Feeds Prices Are High In Kenya -(CAK Report 2024)

    “Feeds will kill your business.”
    You’ve probably heard this statement over a million times.
    It’s what many are told when they decide to get into poultry farming — that you’d make a lot of money, were it not for the prices of feeds.
    Worse still, feed prices keep rising year after year.

    From 2020 to mid-2022, poultry feed costs in Kenya rose by 40–50%.
    Following the same trend, feed costs in Kenya 2025 could increase by another 25%.
    Is this a lie? Definitely not.

    Animal feeds are the single largest expense on any poultry farm — layers or broilers.
    Even for livestock like cattle, pigs, or fish, feed accounts for about 70% of the farm’s total expenses.
    After deducting labor, vaccines, water, and other costs, most farmers are left with around 20% of their revenue as net profit.
    Some don’t even break even.
    Worse still, some incur losses.

    To survive, farmers try different ways to reduce feed expenses:

    -Buying cheaper, low-quality feeds. This often backfires due to poor egg production and even greater losses.

    -Purchasing in bulk for discounts. Only large farms benefit from this.

    -Supplementing with local feed options such as pawpaw, vegetables, azolla, or hydroponic fodder. These are difficult to balance nutritionally.

    -Producing their own feed. While this is cost-effective, it only works for large farms that understand feed formulation and raw material sourcing.

    So What Did I Do?

    As part of my research on why animal feeds prices are high in Kenya — a concern that keeps many from starting poultry farms — I came across a 2024 Animal Feeds Inquiry Report by the Competition Authority of Kenya (CAK).

    This report explored the reasons behind the high feed prices and made key recommendations to solve the issue.

    Below is a summary of the report.

    In my next post, I’ll share my personal take on how the government and farmers like us can take action.

    If this problem is fixed, Kenya could unlock massive employment opportunities across the animal feeds value chain.

    Manufacturers, distributors, farm owners, and workers would all benefit.

    Increased egg production would follow — the cheapest source of protein for most African families — and this would help reduce malnutrition across the continent.

    But Is This Problem Unique To Kenya?


    Unfortunately, yes.
    Among East African countries, animal feeds prices in Kenya are the highest.
    Compared to international benchmarks, feed prices here remain unreasonably high.

    Kenya also struggles with the influx of cheaper imported eggs, mainly from Uganda.
    Why? Because Uganda has lower poultry feed costs, allowing their farmers to sell eggs more cheaply while still making a profit.
    This puts Kenyan poultry farmers at a serious disadvantage.

    So Why Are Animal Feeds Prices High In Kenya?

    A 70kg bag of layer mash going for Ksh.10,000 showing the extent of high animal feeds in Kenya.Secret layers summary of the CAK Inquiry Report,2024.
    7 Reasons why animal feeds are high in Kenya according to Competition Authority of Kenya(CAK) Inquiry Report,2024.

    According to the CAK report, there are 7 key reasons behind the high animal feed prices in Kenya:

    1. Heavy Dependence On Imported Raw Materials

    Kenya doesn’t produce many of the raw materials needed to make poultry feeds.
    Instead, we import them — and this adds costs at every step.

    Soybean meal is imported mainly from Zambia, Malawi, and Uganda.

    Sunflower cake comes from Tanzania.

    Vitamins and additives are brought in from countries like China, the Netherlands, and Germany.

    Every stage of importation — from foreign exchange, transport, taxes, and port delays — raises the final price.
    Local farmers pay for all this when they buy feeds.

    This overreliance on imports makes our feed prices volatile and sensitive to global changes.

    2. Market Dominance By A Few Feed Manufacturers

    Only four companies control over 50% of the commercial animal feed market in Kenya.This means just a few players determine the pricing trends.

    While the report does not accuse them directly of collusion, the structure allows for potential price control.
    This limits the power of smaller players and gives big companies room to increase prices unchecked.

    When competition is low, innovation and price cuts disappear — bad news for smallholder farmers.

    3. Unfair Pricing For Non-Integrated Feed Producers

    Some feed companies are “integrated,” meaning they also own or control the supply of raw materials.
    Others rely on external suppliers for inputs.

    In 2021 and 2022, the report shows that non-integrated feed producers were charged higher prices for inputs.
    This “margin squeeze” forced many smaller producers out of business.

    So the fewer the producers, the less competition — and the higher the feed prices.

    If you’ve ever wondered why the small local feed company died, this is a major reason.

    4. Input Processors Set Their Own Rules

    Most natural processors of feed inputs like oil cakes and grains are based in East and Southern Africa.
    Because they dominate the region, they can dictate trade terms and pricing.

    Kenya, being a buyer, has little say.
    Our feed manufacturers must accept the high prices or go without.
    This makes it harder to produce affordable poultry feed options for local farmers.

    5. Lack Of Transparency And Information Sharing

    Large feed suppliers in Kenya often exchange information with each other.
    However, smaller players are left in the dark.

    This lack of transparency allows the big players to coordinate pricing — even without formal agreements.
    It also blocks new entrants from competing fairly.

    When small businesses don’t know the actual market rates or raw material trends, they can’t plan or scale.

    This keeps animal feeds prices in Kenya unnecessarily high.

    6. County Taxes Create Fragmented Markets

    One of the most frustrating problems for manufacturers is the inconsistent and excessive county taxes.
    These vary wildly across Kenya and make the distribution of feeds expensive and unpredictable.

    For example:

    Machakos County charges Ksh. 20,000 annually per vehicle for distribution.

    A separate Ksh. 20,000 is charged for branding.

    Each truck needs a Ksh. 2,500 annual transport sticker.

    On top of that, there’s a daily parking fee of Ksh. 500 per truck.

    Other counties add more charges:

    In Kericho, feeding all six sub-counties could cost at least Ksh. 1,200 per day per truck.

    In Tharaka Nithi, manufacturers must pay all vehicle parking fees upfront — regardless of how often they deliver.

    And it doesn’t stop there.
    Counties also charge Agricultural Produce levies for inputs like rice polish, salt, and maize bran.
    These additional costs are passed on to the farmer.

    All this leads to one thing: higher feed costs across Kenya.

    7. Limited Use Of Yellow Maize For Feed

    In countries like Uganda, both white and yellow maize are grown.
    White maize is used for human food, while yellow maize is reserved for animal feed.

    But in Kenya, almost all maize is white — and it’s used for both food and feed.
    This creates direct competition between humans and animals.

    In 2025, maize prices rose and this means layer feed prices will ‘jump’ by almost 30%.
    Why? Because the demand for maize in feed production still outpaces supply.

    If Kenya increased yellow maize production, feed manufacturers could have a cheaper, dedicated source.

    Why Poultry Feed Rises Faster Than Dairy Feed

    Dairy feed is easy to make — just mix the ingredients.
    No need for expensive machines.

    Poultry feed, on the other hand, requires pelleting and crumbling, which needs precise formulation and investment in machines.
    This increases production costs and drives up prices.

    It’s no surprise that poultry feed costs in Kenya continue to rise faster than other animal feeds.

    What CAK Recommends

    To solve the problem, CAK made several important recommendations:

    1. Reposition the animal feeds industry.
    Invest in the sector and remove existing barriers to unleash its job creation and production potential.


    2.Improve cross-border markets and regulations.This would make it easier to source inputs at fair prices across COMESA and EAC regions.


    3. Eliminate county-level trade barriers.
    Unpredictable taxes hurt feed manufacturers and distort national pricing. These must be reviewed and harmonized.


    4. Track and monitor feed markets.
    Government and regional bodies should assess whether Kenya’s feed prices match international trends.
    They should intervene in cases of anti-competitive behavior.


    5. Add animal feeds to KAMIS monitoring system.
    This would help create transparency in feed pricing, benefiting both manufacturers and farmers.

    What This Means For You

    If these solutions are fully implemented, poultry farming could become more profitable.
    Lower and stable feed prices mean more profit, less stress, and better planning.

    Imagine earning 40% more because feed costs dropped.
    It’s not a dream — it’s possible with the right reforms.

    In My Next Post…


    Next Friday, I’ll share what I believe we farmers and the government can do to lower feed prices sustainably.
    These are practical, long-term solutions that will build on CAK’s findings.

    Together, we can take agriculture to the next level — maybe even Mars 🚀

    📄 Read the Full CAK Inquiry Report here

    Before You Go

    💬 Which CAK recommendation do you think would help the most?
    Leave a comment below.

    📩 Want more updates like this?Enter your details below to grab a copy of my free guide and regular Layer Chicken Digest tips and reports via email:

    Name

    See you next Friday!

    Carlos Deche

    secretlayerske@gmail.com

    carlosdeche4040@gmail.com