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The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya

Received: 11 April 2016     Accepted: 22 April 2016     Published: 18 July 2016
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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.

Published in Urban and Regional Planning (Volume 1, Issue 2)
DOI 10.11648/j.urp.20160102.11
Page(s) 23-35
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Market Access Factors, Commercialization, Smallholder Dairy Producers, Smallholder Dairy Value Chain Development, Uasin Gishu County

References
[1] Agwu, N. M., Anyanwu, C. I. and Mendie, E. I. 2013. Socio-Economic Determinants of Commercializing among Smallholder Farmers in Abia State, Nairobi. 4th International Conference of the African Association of Agricultural Economists, September 22-25, 2013, Hammermet, Tunisia.
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[3] Gebreselassie, S., and Sharp, K., (2008). Commercialization of smallholder agriculture in selected Tef-growing areas of Ethiopia. Agriculture and rural development division, Ethiopian Economic Policy Research Institute (EEPRI), Addis Ababa, Ethiopia.
[4] Government of Kenya (G.O.K). (2010a). Kenya National Dairy Master Plan, Nairobi, Kenya.
[5] Government of Kenya (G.O.K). (2013a). “Uasin Gishu County Annual Report.” Ministry of Agriculture, Livestock and Fisheries, Eldoret. 112 pp.
[6] Government of Kenya (G.O.K).(2013b). Sessional Paper No 5 of 2013 on National Dairy Development Policy. Government Printer, Nairobi.
[7] Government of Kenya (G.O.K). (2013c). County Integrated Development Plan of Uasin Gishu County, Eldoret, 2013.
[8] Government of Kenya (G.O.K). (2014). Impact Assessment Report of Smallholder Dairy Commercialization Programme. Nakuru, Kenya, 100 pp.
[9] Govereh, J. Jayne, T. S. and Nyoro, J. (1999). Smallholder Commercialization, Interlinked Markets and Food Crop Productivity.
[10] Heierli, U., and Gass T.(2001). Enhancing employment and income generation in rural areas. Paper submitted to the Operation Committee of the Swiss Agency for development and cooperation (DEZA).
[11] Ike, P. C. 2012. An Analysis of the Impact of Fadama III Project on Poverty Alleviation in Delta State, Nigeria. Asian Journal of Agricultural Science, 4 (2): 158-164.
[12] International Fund for Agricultural Development (IFAD). 2013. A Review of Market Access. IFAD, Rome. 170-188.
[13] Jaleta, M.; Gebremedhin, B. and Hoekstra D. (2009). Smallholder Commercialization: Processes, Determinants and Impact. Discussion Paper No. 18. Improving Productivity and Market Success (IPMS) of Ethiopian Farmers Project, ILRI (International Livestock Research Institute), Nairobi, Kenya. pp. 55.
[14] Lovo, S. 2013. Pension Transfers and farm household technical efficiency: Evidence from South Africa. American Journal of Agricultural Economics. (2011) 93 (5): 1391-1405.
[15] Makhura, M. T., (2001). Overcoming transaction costs barriers to Market participation of smallholder farmers in the northern province of South Africa. PhD dissertation, University of Pretoria, Pretoria.
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[17] Muhammad-lawal, A., amolegbe, K. B., oloyede, W. O., and Lawal, O. M., (2014). Assessment of Commercilization of food crops among farming households in Southwest, Nigeria. Department of Agricultural Economics and Farm Management, University of Ilorin, P.MB 1515, Ilorin, Nigeria. Ethiopian journal of environmental studies and management 7 (5): 520-531. ISSN: 1998-0507.
[18] Nmadu, J. N., Onu, J. O., Tanko, L. (2011). Credit acquisition and utilization by farmers in Minna metropolis, Niger State, Nigeria.
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[20] Omiti, J.; McCullough, E.; Otieno, D.; Madelon, M.; Nyanamba, T.; and Murage, A. 2006. Participatory Prioritization of Issues in Smallholder Agricultural Commercialization in Kenya. KIPPRA Discussion Paper No. 64. Pp. 72.
[21] Omiti, J. M., (2009). Factors affecting the intensity of market participation by smallholder farmers: A case study of rural and peri-urban areas of Kenya. African Journal of Agricultural and Resource Economics, 3 (1): 57-82.
[22] Pingali, P. L; Khwaja, Y.; and Meijer, M., (2005). Commercializing small-scale farmers: Reducing transaction costs. FAO/ESA working paper No. 05-08. FAO (Food and Agriculture Organisation of the United Nations, Rome, Italy.
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    Kembe Moses Ageya, Charles Ochola Omondi. (2016). The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya. Urban and Regional Planning, 1(2), 23-35. https://doi.org/10.11648/j.urp.20160102.11

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    ACS Style

    Kembe Moses Ageya; Charles Ochola Omondi. The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya. Urban Reg. Plan. 2016, 1(2), 23-35. doi: 10.11648/j.urp.20160102.11

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    AMA Style

    Kembe Moses Ageya, Charles Ochola Omondi. The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya. Urban Reg Plan. 2016;1(2):23-35. doi: 10.11648/j.urp.20160102.11

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  • @article{10.11648/j.urp.20160102.11,
      author = {Kembe Moses Ageya and Charles Ochola Omondi},
      title = {The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya},
      journal = {Urban and Regional Planning},
      volume = {1},
      number = {2},
      pages = {23-35},
      doi = {10.11648/j.urp.20160102.11},
      url = {https://doi.org/10.11648/j.urp.20160102.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.urp.20160102.11},
      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.},
     year = {2016}
    }
    

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  • TY  - JOUR
    T1  - The Influence of Market Access Factors on Commercialization of Smallholder Dairy Value Chain Development in Uasin Gishu County, Kenya
    AU  - Kembe Moses Ageya
    AU  - Charles Ochola Omondi
    Y1  - 2016/07/18
    PY  - 2016
    N1  - https://doi.org/10.11648/j.urp.20160102.11
    DO  - 10.11648/j.urp.20160102.11
    T2  - Urban and Regional Planning
    JF  - Urban and Regional Planning
    JO  - Urban and Regional Planning
    SP  - 23
    EP  - 35
    PB  - Science Publishing Group
    SN  - 2575-1697
    UR  - https://doi.org/10.11648/j.urp.20160102.11
    AB  - 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.
    VL  - 1
    IS  - 2
    ER  - 

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Author Information
  • School of Planning and Architecture, Maseno University, Maseno, Kenya

  • School of Environment and Earth Sciences, Maseno University, Maseno, Kenya

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