DEPARTMENT OF AGRICULTURAL ECONOMICS
SPECIAL PROJECT & ORAL PRESENTATION (AEC455)
DRAFT OF THE FINAL REPORT
AN ANALYSIS OF SOCIAL-ECONOMIC FACTORS CONTRIBUTING TO REDUCED MILK MARKETING IN NYERI EAST DISTRICT, KENYA
WACHIRA DICKSON MAINA
SUPERVISOR: DR NYIKAL
CELL: 0712274454 EMAIL: firstname.lastname@example.org
I wish to acknowledge my parents for their moral and financial support to enable my accomplishment of this work. I also wish to acknowledge my research respondents who willingly and selflessly provided me with the required data.
This research is devoted to analyze the problem of reduced milk marketing in Nyeri East District which has been underway over the past three years. The research has evaluated both the social and economic factors which may have favored this condition. Interview was the only method that was used to get primary data, where individual rather than groups were consulted. Data analysis was through Microsoft excel, from which relationships between various variables was obtained. Various economic factors, with differentiated magnitude were indentified and attributed by the researcher to the cause of the problem. Social factors are viewed as to have minimal weight in the cause of the problem. The research has also gone further to identify some other relevant areas that needs research work carried out.
Table of Contents
1.1 BACKGROUND INFORMATION5
1.2 PROBLEM STATEMENT:7
1.4 RESEARCH QUESTIONS:8
2.0 LITERATURE REVIEW9
2.1 REVIEW OF RELATED LITERATURE9
2.1.1MILK MARKETING CHANNELS AND THEIR ADOPTION BY DAIRY FARMERS10
2.2 CONCEPTUAL FRAMEWORK12
3.1 Description of the area of study13
3.1.1 Selection of the study site14
3.2 Research design and sampling procedure14
3.3 Data collection15
1.1 BACKGROUND INFORMATION
Kenya is classified second best milk producing country in Africa after South Africa which is the leading producer of milk for both consumption and export. Milk production in Kenya has significantly increased from 2 billion litres per annum in 2002 to 5 billion litres per annum in 2011 (Ministry of Agriculture, 2012). About 80 percent of the total milk produced in Kenya comes from smallholder dairy farmers who have ventured in dairy farming as a business, while 20 percent is contributed by medium and large scale farmers who are mainly found in the drier parts of the country. According to Omore et al, (1999) and Omiti and Njoroge, (2002) independently, the dairy industry forms a significant part of the rural economy with an estimate of over 600,000 small holder farmers who derive their livelihood from the sector. Zero grazing to a great extent prevails in small holding since the farmers lack enough land to provide enough pasture for their animals. Two types of marketing systems do exist in Kenya, formal and informal marketing system. The formal marketing system is where the institutions involved are licensed and controlled by the Kenya Dairy Board and allowed to transact business with dairy farmers. The sector mainly deals with receipt of milk from farmers, directly or through farmers’ cooperative, processing and distributing the products to the consumers as whole milk and other milk products. Prior liberalization Kenya Cooperative Creameries (KCC) was the main player in the formal sector, though other players such as Meru Central Farmers Cooperative Union (MCFCU) and Kitinda Dairy Farmers Cooperative Society (KDFCS) also participated in the sector but later collapsed. Currently more cooperatives have joined the sector due to anticipated increase...