The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya
Kembe Moses Ageya,
Charles Ochola Omondi
Issue:
Volume 1, Issue 2, July 2016
Pages:
23-35
Received:
11 April 2016
Accepted:
22 April 2016
Published:
18 July 2016
DOI:
10.11648/j.urp.20160102.11
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Abstract: Varied smallholder farming is central to livelihoods of many rural households in developing economies. Dairy farming in Kenya is the largest sub sector of agriculture growing at the rate of 4.1% per annum in comparison to 1.2% for agriculture sector as a whole. Commercializing smallholder dairy value chain development, therefore, is crucial in providing alternatives out of poverty and sustainable rural development. However, smallholder dairy value chain development is influenced by different factors at different levels of commercialization. Uasin Gishu County leads in milk production in Kenya with subsistence, semi-commercialized and commercialized farming being 70%, 20% and 10% respectively. Therefore, an assessment of market access factors on household commercialization may help unlock the transition from subsistence to commercialized smallholder dairy farming. The objective of this paper is to assess the influence of market access factors on commercialization of smallholder dairy value chain development. Guided by the theory of profit maximization, the paper utilized social survey research design and both secondary and primary data to execute the methodological process. A sample size of 384 smallholder dairy producers was studied out of a population of 50,457 respondents. Primary data was collected using structured questionnaires, focused group discussions, and key informants. The County was stratified into six sub-Counties and simple random sampling technique was used to select the respondents in each of the strata. Data was analyzed using descriptive statistics (mean and standard deviation) andinferential statistics (Pearson product-moment correlation coefficient; Spearman's rank correlation coefficient and multiple regressions) to describe and evaluate the relationship between market access factors (independent variables) and Household Commercialization Index (HCI) (dependent variable). The results the study concludes that the market access factors have significant influence on commercialization of smallholder dairy value chain development. In view of these results, it is recommended that the National and County Governments formulate policies, strategies, projects and programs that address the market access factors for increased level of dairy commercialization and sustainable rural development.
Abstract: Varied smallholder farming is central to livelihoods of many rural households in developing economies. Dairy farming in Kenya is the largest sub sector of agriculture growing at the rate of 4.1% per annum in comparison to 1.2% for agriculture sector as a whole. Commercializing smallholder dairy value chain development, therefore, is crucial in prov...
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Spatial Planning Competitiveness Integrants in Dairy Production and Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya
Kembe Moses Ageya,
Charles Ochola Omondi
Issue:
Volume 1, Issue 2, July 2016
Pages:
36-44
Received:
12 April 2016
Accepted:
22 April 2016
Published:
28 July 2016
DOI:
10.11648/j.urp.20160102.12
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Abstract: Many rural households in developing economies majorly depend on smallholder farming activities. In Kenya, smallholder dairy farming grows at 4.1% in contrast to 1.2% for agriculture sector as a whole. Uasin Gishu County is the leading milk producer in Kenya with 70% subsistence, 20% semi-commercialized and 10% commercialized smallholder farming respectively. However, dairy production in this County is experiencing structural changes towards intensification and commercialization. Commercializing smallholder dairy value chain is critical in providing ways out of poverty and for sustainable rural development. Studies have shown that competitiveness of smallholder dairy production varies with intensification from free grazing, semi-zero grazing or zero grazing. This is true for Uasin Gishu County where rapidly declining household land sizes is contributing to increased intensification and commercialization in dairy production. Inefficiency of milk production leads to the sub-sector being uncompetitive in the market due to relatively high cost of milk production and low output. The objective of this paper is to establish the influence of competitiveness of dairy production on commercialization of smallholder dairy value chain development. Social survey research design was used to obtain both secondary and primary data. A sample size of 384 smallholder dairy producers was studied out of a population of 50,457 respondents. Cobb-Douglas stochastic frontier production function was used to estimate the technical and economic efficiency of smallholder dairy production while the profit function was utilized to measure the gross margin and profit of dairy production. Results indicate that presence of technical and economic inefficiencies had influence on milk production. Technical and economic efficiency increased with the level of intensification of milk production. The elasticity of milk production was an increasing function of cost of feeds and equipment in the three production systems with statistical significance at 5%.
Abstract: Many rural households in developing economies majorly depend on smallholder farming activities. In Kenya, smallholder dairy farming grows at 4.1% in contrast to 1.2% for agriculture sector as a whole. Uasin Gishu County is the leading milk producer in Kenya with 70% subsistence, 20% semi-commercialized and 10% commercialized smallholder farming res...
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