Spatial Planning Competitiveness Integrants in Dairy Production and Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya
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%.
Kembe Moses Ageya,
Charles Ochola Omondi,
Spatial Planning Competitiveness Integrants in Dairy Production and Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya, Urban and Regional Planning.
Vol. 1, No. 2,
2016, pp. 36-44.
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