An Analysis of Factors Influencing Small Scale Dairy Farmers Choice of Cooperatives as Milk Marketing Channels in Githunguri Subcounty, Kiambu County.

Abstract

In many parts of Kenya, small scale dairy farming is common.This can be attributed to increase in demand for milk due to increase in population in urban areas. Farmers sell milk through cooperatives, direct sale, brokers and processors. Dairy farming is practiced throughout the world. This research sought to determine to assess determinants of small-scale dairy farmer’s choice of customer in Kenya. The study was carried out in purposively selected Githunguri Sub County in Kenya. The study was guided by 3 questions derived from the objectives. To what extent does customer accessibility, volume of milk produced and terms of trade determine choice of customer by small scale dairy farmers in Kenya. Empirical literature review presented a research gap for this project. The research was anchored on rational choice theory. The relationship between research variables was demonstrated by a configured conceptual framework. The study sampled 375 small scale dairy farmers in Githunguri Sub-county Kiambu County. Simple random sampling technique was employed in selecting the sample. Data was analyzed using descriptive and inferential statistics. Descriptive statistics was in form of frequency distributions and percentages. Inferences are in terms of Chi square test (P < 0.05). Data was presented in form of tables. The findings from the study indicated that customer accessibility, volume of milk produced, and terms of trade determined small scale dairy farmers’ choice of customer in Kenya. The study concluded that majority of farmers chose dairy cooperatives and direct selling as the preferred customers compared to brokers and processors. The study recommends that County Governments improve the state of roads so that farmers can easily access their customers of choice, invest in technology so that small scale dairy farmers can communicate with their customers in real time, develop policies that will enable small scale dairy farmers improve livestock breeds for more milk production and educate farmers on the importance of written contracts.