Feed prices challenge Kenyan egg producers despite stable demand

KENYA – Industry experts report that Kenya’s egg market is experiencing challenges as rising feed costs continue to strain poultry farmers and cut into their profitability.

Although the price of eggs has eased slightly, the escalating costs of essential feed ingredients like maize and soy have become a significant obstacle, leaving farmers struggling to maintain profitability.

Additionally, macroeconomic factors such as high fuel prices are driving up feed production costs and making feed transportation more expensive.

As a result, exotic eggs now sell for KSh 400 to KSh 600 (approximately US$3-5) per tray, with indigenous eggs priced higher, between KSh 540 and KSh 750 (approximately US$4-6) —markedly more than last year. 

Despite the steady demand, eggs remain a staple protein source across Kenyan households. However, this demand alone is not enough to offset the financial pressures of rising feed costs.

According to an article in Business Daily, Kenchic Managing Director Jim Tozer pointed out that despite the steady demand, feed expenses remain a “big headache” for farmers, with fluctuating maize and soy prices presenting a dynamic and uncertain landscape for 2024.

Additionally, Kenya’s heavy reliance on egg imports from neighboring Uganda and Tanzania complicates the situation further.

Domestic production cannot meet demand, necessitating imports, which often come at lower prices, forcing local farmers to reduce prices to remain competitive, ultimately squeezing their profit margins.

Seasonal fluctuations in egg supply also play a role, with high-quality feeds yielding better productivity but at a greater cost, which many farmers are unable to absorb.

While the Kenya National Bureau of Statistics reported a drop in food inflation to 4.3 percent in October, thanks to the reduced prices of some commodities, the cost of animal feed has yet to see a similar decline. 

For many Kenyan farmers, feed prices represent an ongoing burden that threatens the stability of the egg industry, a critical part of the nation’s agricultural economy.

As Kenya heads into 2024, the challenges facing poultry farmers call for attention to the broader impact of feed prices. 

Industry experts emphasize the need for sustainable solutions that could stabilize feed prices and support local egg production, ensuring that farmers can continue to meet domestic demand without relying heavily on imports.

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