Why 2024 was a good year for dairy and cottonseed farmers

For dairy, cottonseed, and wheat farmers, 2024 was a great year.

They smiled all the way to the bank after these products recorded a double digit jump in prices in the review period as reported by the 2025 Economic Survey Report.

The report, which shows that small farms still dominate the larger portion of marketed agricultural output in the country, also lists beef (third grade) and pig farmers among those whose products recorded an improvement in prices.

Of the 10 products listed in the report published by the Kenya National Bureau of Statistics (KNBS), milk, at 100 litres, recorded the highest increase in price over the period, rising by 29.8 per cent.

The price of 100 litres of milk rose to Sh6,600 in 2024 from Sh5,083 in 2023.

However, tea, sisal and sugarcane farmers saw their products record a drop in the specified unit prices. Sisal dropped by 8.3 per cent, tea 4.7 per cent and sugarcane 2.1 per cent.

Cottonseed farmers saw their prices appreciate by 24.4 per cent to Sh7,457 per 100kg while wheat, same quantity, recorded an increase of 13.5 per cent to Sh5,723.

A 100 kg of pork went up by 9.5 per cent to Sh31,489 while the same amount of beef (third grade) went up 9.3 per cent to Sh61,631 during the review period.

The appreciation in the prices of beef (third grade) and pork explains partly how the livestock sector earnings posted a remarkable growth of 17.2 per cent to Sh235.0 billion in 2024.

Maize farmers saw the price of a 100kg bag go up by 2.7 per cent to Sh6,281 while coffee, the same weight, improved by 7.2 per cent to Sh65,880.

According to the report, marketed output by small farms continue to dominate the agricultural product market, maintaining their 73.1 per cent share.

While large farms recorded sales of produce worth Sh185.7 billion in 2024, small farms recorded Sh504.5 billion. While sales by large farms went up by 7.7 per cent during the review period, small farms grew by 7.2 per cent.

“Small farms retained their dominant share, contributing 73.1 per cent of marketed output in 2024,” the report confirms. “Consequently, the value of sales rose by 7.1 per cent to Sh504.5 billion in 2024. The value of sales by large farms increased by 7.7 per cent to Sh185.7 billion in 2024.”

The report explains that the price of cottonseeds, which increased by 24.4 per cent in the review period is a result of the government’s plan to revive the textile sector.

“Cottonseed prices increased by 24.4 per cent, from Sh5,993.2 to Sh7,457.5 per 100 Kgs in 2024 due to improved quality of seed variety and government investment towards reviving the sector,” the report says.

This is a major jump in prices for cottonseeds whose price stood at Sh5,903 per 100kg in 2020.

The increase in maize prices was marginal from Sh6,116 in 2023 to Sh6,281 in 2024 but higher when compared to Sh3,152 in 2020.

“However, the price of tea decreased by 4.7 per cent from Sh31,212.2 in 2023 to Sh29,736.4 per 100 Kgs in 2024 while sisal prices declined by 8.3 per cent, from Sh23,700.7 to Sh21,726.9 in 2024,” the report further details.

During the period, earnings from tea decreased by Sh83.7 million to Sh178.0 billion. This is while earnings from sugarcane rose by 63.5 per cent to Sh48.4 billion in 2024.

The price of sugarcane dropped marginally to Sh5,291 per tonne in 2024 from Sh5,333 in 2023.

“This was attributed to increased production occasioned by favorable weather conditions for sugarcane growth in most sugar-growing zones and the expansion of sugarcane acreage,” the report says.

The report says in 2024, the area under sugarcane increased by 13.2 per cent to 293,300 hectares. Likewise, the harvested area increased by 62.1 per cent to 134,900 hectares in 2024.

“The increase was mainly attributed to increased availability of mature cane during the year under review after the closure of mills from July 2023 - November 2023. As a result, total cane production nearly doubled, increasing from 5.6 million tonnes in 2023 to 9.4 million tonnes in 2024,” the report says.

It is noted in the report that the average yield increased from 56.9 tonnes per hectare in 2023 to 61.0 tonnes per hectare in 2024. As such, the price of sugar and associated products in the market dropped.

“In 2024, sugar, confectionery and desserts class for food and non-alcoholic beverages recorded a negative inflation rate of 10.7 per cent due to decline in prices of sugar,” the report says.

The report points out that maize, a major staple food among a majority of Kenyans, took a slight hit, declining by 3.6 per cent to Sh10.9 billion.

“Earnings from coffee increased by 48.6 per cent to Sh29.6 billion in 2024. Wheat followed suit, growing by 21.3 per cent to Sh17.9 billion, while milk increased by 17.4 per cent to Sh60.0 billion in 2024,” the report explains.