Abstract.This study sought to analyze the determinants of vertical and horizontal integration among smallholder dairy farmers in Lower Central Kenya. Integration leads to high gross margins, influences choice of marketing channel and improves market participation, encouraging commercialization of dairy smallholder farming. A logit regression model was used to determine the likelihood of a household to integrate vertically or horizontally in its dairy enterprise. A multistage sampling technique was used, and data was collected from 288 small holder dairy farmers in Kiambu County. Processing and analysis of the survey data was carried out using SPSS version 20 and STATA version 12. Fixed investment cost, storage type, milk cost share, percentage of milk sold and dairy enterprise turnover were hypothesized to be key factors in explaining a household's likelihood to vertically integrate in its dairy enterprise. An increase in total fixed investments, turnover and volume of output contribute to the probability of a household integrating vertically. Horizontally integrated farmers were willing to pay more for market information and had higher monthly margins. The paper recommends that farmers should establish and strengthen existing associations and integrate vertically and horizontally on the basis of their spatial location and milk output.
This exploratory study assesses factors that harness agricultural technology adoption among smallholder farmers in Kakamega County, Kenya by evaluating the key variables that influence sustainable adoption of agricultural innovations in the area. A survey was randomly administered in June and July 2018 among smallholder farming households in seven sub-counties (N=78) of Kakamega County. A logistic regression model, capturing factors presumed to influence the adoption of agricultural innovations, was estimated. Results suggest that even in smallholder farms, the farm size is important in adoption of innovations. Results also indicate limited or no farmer interaction (55%) with extension services. Farmers reported application of fertilizer and use of push-pull technology as less important in maintaining soil health. The regression model findings suggest that variables typically presumed to influence adoption in the literature are insignificant in this case study. The statistical significance of the farm size variable implies that agricultural extension messages can be tailored to a variety of farmer audiences for suitable adoption based on farm size. The diffusion of innovation theory remains a valid and relevant framework in studying adoption. This study reiterates the critical role that farmers or their environment play in the adoption process.
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