| dc.description.abstract | Agriculture in Kenya among the small holders is still traditional and subsistence in nature, agricultural finance is needed to create the supporting infrastructure for adoption of new technology. Massive investment is needed to carry out major and minor agricultural activities such as, rural electrification, purchase of livestock feeds, installation of fertilizer and pesticide plants, execution of agricultural promotional programmes and poverty alleviation programmes in the country.
Previous descriptive studies have suggested that more intensive dairy production in East Africa can have positive impacts on the opportunities and welfare of smallholder farmers, with consequent effects on agricultural development. This study sought to establish if there is a relationship between Agricultural Financing and Productivity of Dairy farming in Central Kenya.
The study adopted secondary data. A census survey was undertaken hence there was no need for sampling. Time series data for the period 1981-2013 was obtained. Data was collected from the Kenya Dairy Board, MOLAD, Department of Cooperatives and Marketing, Kenya National Bureau of Statistics and County Offices. Regression model was developed to quantify the impact of credit, number of dairy cattle and number of cooperatives on milk yield. The Statistical Package for Social Sciences (SPSS) Version 20 computer package was used for data analysis.
From the study it was established there is a positive relationship between Agricultural Financing and Productivity of Dairy farming in Central Kenya. This is because financing facilitates acquisition of input resources for improved productivity such as additional dairy cattle, animal feeds, and improved technology and extension services.
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The study recommends that various stakeholders should strive to carry out researches on other forms of financing which are also key to the productivity of dairy farming. These forms include grants, personal savings and supplier’s credit. This will enable them to know which form of financing is more impactful and hence be increased. A study of the entire nation is also recommended since the dynamics of every region are different. The study also recommends an extensive survey be undertaken on the population of dairy cattle and harmonized for reliability of data. Data on Milk Yield also needs to be harmonized to include also amounts consumed and sold to informal traders as opposed to current statistics that only relate to milk produced and sold to registered traders. This data will be key in establish areas of intervention in the milk industry | en_US |
