Influence of smallholder dairy commercialization programme on milk marketing in Borabu District,Nyamira county:Kenya

Abstract

Smallholder Dairy Commercialization Programme (SDCP) is a joint development programme between the Government of Kenya and International Fund for Agricultural Development (IFAD) with an emphasis on commercialization of dairy and dairy products through the Market Oriented Dairy Enterprises (MODE) approach. The programme goal is to increase the income of the poor rural households that depend substantially on production and trade of dairy products for their livelihood. The Programme intervention is to reduce the production costs in dairy farming by increasing the financial viability of the smallholder farmers along the value chain, from production to post-harvest economic activities. Dairy production in Kenya is faced by a multitude of perceived and often experienced risks, which contribute to high costs of production and low average productivity. These factors cause low profit to the producer and price fluctuations for the consumer. Milk prices and payment to farmers is one of the most sensitive issues in the Kenyan dairy sub-sector due to the reported occurrence of low or nonpayment of milk suppliers. In Borabu District, inefficient milk marketing is largely responsible for a large proportion of milk that is retained by producers for home consumption (estimated at 60 %). Thus majority of the smallholder dairy farmers in Borabu District have continued being poor. In the last decade, there has been an increased interest in conducting impact evaluations of development projects, including agricultural projects, with pressure to do so coming from two quarters, economists and communities. This is majorly to determine the effectiveness of development assistance, enhanced accountability as well as learning lessons for policy making. This study sought to establish the effects of SDCP on market-oriented dairy production, particularly milk marketing in Borabu. The overall objective of the study was to assess the influence of SDCP on milk marketing in Borabu district. The study tested the hypotheses to determine the variables which are significantly related to, and have significant effect on milk marketing. The variables associated with milk marketing included level of project funding, capacity building, adoption of new technologies, participation of grass-root institutions and creation of linkages with private sector. The study used both quantitative and qualitative approaches for data collection. Questionnaires and interview schedules were use for collecting data and other information relevant to the study. The sample for this study was 206 respondents for the programme beneficiaries who were be sampled using both probability and non probability sampling methods within Borabu district. Multiple regression analysis technique was be used to identify real determinants milk marketing and the strength of each determinant. The hypotheses were tested at 0.05 level of significance. F test was used to determine significant predictors. The study found that SDCP has had a positive impact on milk marketing. A multiple regression analysis confirmed that the five predictors are significant determinants of milk marketing. The study concluded that level of funding, capacity building, adoption of new technologies, participation of Grass-root institutions and creation of linkages with private sector are all determinants of milk marketing. The study recommends timely and adequate funding of SDCP, adequate community contribution, up scaling farmers‘ participation in on-farm demonstrations, strengthening of cooperatives and other farmers‘ organizations. Areas that need further research are dairy value chain development and influence of infrastructural development on milk marketing in Borabu.