Factors Influencing Smallholder Dairy Farmers’ Choice of Milk Marketing Outlet in Nandi North District, Kenya
Abstract
Smallholder dairy farmers make up the bulk of milk producers in Kenya yet there is fragmented information on determinants of the choice of milk marketing outlet. The main objective of this study was to determine factors which influence smallholder dairy farmers‟ choice of milk marketing outlet in Nandi North District. Rational choice theory was employed and a conceptual framework developed to link the study variables. Survey research design was employed in this study. Simple random sampling was use d with a study sample size of 185 household heads. The study employed interview schedule as the data collection instrument. Descriptive and inferential statistics were used to analyze data and present the study result. Chi-square test was used to test the hypotheses with the level of significance set at 5 percent. The results indicated that there exist factors which influence smallholder dairy farmers‟ choice of milk marketing outlet in the district. The state of road infrastructure, ownership of means of t ransport and services offered by the milk chilling plants influences the choice of milk marketing outlet. The results revealed that smallholder dairy farmers look for both milk price and a market outlet offering other services. Farmers forego high milk prices in urban areas in order to access credit and farm inputs offered by the chilling plants. The study concluded that it is important to invest in rural infrastructure especially roads in order to reduce marketing cost. Moreover, there is huge potential in the farmer producer groups in marketing of farmers produce. The study recommended that the government needs to remove barriers inhibiting their functioning and increase their capacity by offering training. Further research should be carried out to come up with strategy to improve policy makers understanding of the dairy industry in Kenya
References
International Food Policy Research Institute (2011). A new era of economic transformation in Ghana, lessons from the past and scenarios for the future. Washington, D.C.
Land O‘lakes, (2009). BDS market diagnostic, BDS needs analysis and intervention design for Lessos, Tranzoia and Nyeri milk
sheds. USAID Kenya dairy sector competitiveness program
Ministry of Livestock and Fisheries Development (2007). Towards a competitive and sustainable dairy industry for economic growth in the 21st century and beyond. Draft sessional paper on dairy industry. T he government p ress. Nairobi
Ministry of livestock development (2011). Annual livestock production report Nandi North. District livestock production office Nandi north
Pollin .R, J. Heintz & M. Githinji, (2007). An employment targeted economic program for Kenya , University of Massachusetts-Amherts.
Rabionwitz .G, (2008). Up-scaling aid for trade- A Kenya perspective (briefing paper No T DP 2/2008). Jaipur, India: Cuts International.
Wallace, .R.A., (1991). Contemporary sociological theory: continuing classical theories. Prentice hall Inc, New Jersey.
World Bank (2008). World development report 2008: agriculture for development. Washington, D.C.