Analysis of Determinants of Vertical and Horizontal Integration among Smallholder Dairy Farmers in Lower Central Kenya

Mutura, James K.; Nyairo, Newton; Mwangi, M.; Wambugu, Stephen K.

doi:10.24102/ijafr.v5i1.596

Cited by 20 publications

(25 citation statements)

References 18 publications

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“…The possible reason that the longer the distance, the higher the production costs, hence the channel which is associated with higher production costs reduces farmer's gross margins. This research finding is consistent with the results of Mutura et al (2015).…”

Section: Lagged Onion Market Pricesupporting

confidence: 83%

“…This implied that the probability of selling onions to assembler's market channel would be decrease than the probability of selling to retailer market channel choice. This result consistent with Bongiwe and Micah (2013), Mutura et al (2015), were found that education affect vegetable and diary market channel choice negatively, respectively.…”

Section: Distance To Nearest Urban Marketsupporting

confidence: 82%

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Determinants of outlet choices by smallholder onion farmers in Fogera district Amhara Region, Northwestern Ethiopia

Melese¹,

Goshu²,

Tilahun³

2018

J. Hortic. For.

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Market outlet choice for small holder onion producers is mandatory, since onion crop is a perishable horticultural crop. This study was aimed at assessing determinant of market outlet choice by smallholder onion farmers in Fogera District of Ethiopia. A stratified random sampling technique was employed, to select 150 onion producers in the study area. Multivariate probit model was employed to identify the factor affecting onion market outlet choices. The result of multivariate probit model showed that literacy status, owning transport facility, livestock holding, onion yield and access to extension service significantly influenced the choice of onion market outlet. The common underlying factors of market channel choice were also identified. Based on the results, the study recommended that the government and stakeholders should focus on strengthening the existing of formal and informal education, onion production system, improving extension system, strengthening the existing ruraltelecom and rural-urban infrastructure development and improving crop-livestock production.

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Section: Lagged Onion Market Pricesupporting

confidence: 83%

Section: Distance To Nearest Urban Marketsupporting

confidence: 82%

Determinants of outlet choices by smallholder onion farmers in Fogera district Amhara Region, Northwestern Ethiopia

Melese¹,

Goshu²,

Tilahun³

2018

J. Hortic. For.

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“…Number of dairy cows had a positive and statistically significant (p = 0.000) relationship with the quantity of milk sold by households. Mutura, Nyairo, Mwangi, and Wambugu (2015) observed that increase in output per day increased probability of choice of cooperatives which take large volumes of milk as a way of lowering transaction cost by avoiding excess milk spoilage.…”

Section: Discussionmentioning

confidence: 99%

Determinants of Households’ Market Participation around Community Milk Cooling Plants, Western Kenya

Emukule¹,

Kipsat²,

Wambui³

2018

JAS

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Market participation in sub-Saharan Africa has been assessed mainly based on already producing households by looking at whether they sold or not, and if they sold, what quantities. The objective of this study was to determine the socio economic factors that influenced households' decisions on market participation in terms of dairy cow ownership and quantity of milk sold while taking into consideration the non-producers using Heckman two stage model. The model allowed for not only determination of the effects of household characteristics on volume of milk surplus sold by already producing households but also drew inferences on the effect of household characteristics on probabilities of dairy cow ownership whileadding new information to literature by generating the truncation effect. A multistage sampling technique was used to select 544 producer and non-producer households and primary data collected using a semi structured interview schedule through personal interviews. From the results, probit marginal effects for dairy cow ownership were associated positively and statistically significant with household size, the level of education and land size owned by the households. The Heckman selection estimates revealed that increased number of dairy cows per household positively influenced the volumes of milk sold, while household size influenced negatively the quantity of milk sold. In conclusion, milk sales conditional on dairy cow ownership suffered from negative selectivity bias whereby a household with sample average characteristics who selected into dairy cow ownership secured 40% lower quantity of milk sold than would a household drawn at random.

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“…i  Previous studies highlight that farmers' milk market channel choice was affected by sales price, milk output, personal relationship, access to information, transaction cost and easements of payment (Mutura, Nyairo, Mwangi, & Wambugu, 2016;Tsourgiannis et al, 2008). Other factors affecting milk market channel choice include the distance to a collection center, education level, membership to farmers' groups, extension contact, number of dairy cows owned, and better milk price (Demissie et al, 2018;Kuma et al, 2013;Moturi, Obare, & Kahi, 2015).…”

Section: Eqmentioning

confidence: 99%

Urban and Peri-urban Milk Market Channel Choice Using Multivariate Probit Approach: Evidence from Arsi Highland of Ethiopia

Zeleke¹,

Assegidaw²,

Deddefo³

2020

Preprint

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This article aims at analyzing the factors that affect urban and peri-urban dairy farmers’ milk market channel choice in the Arsi Highland of Ethiopia. The reason for focusing on milk is because the product is a key dairy product that contributes to dairy households' economic development, employment creation, and a pathway out of poverty. Four milk marketing channels were thoroughly investigated: a) cooperative channel, b) cafeteria/restaurant channel, c) consumer channel, and d) assembler/trader channel. Primary data collected from 259 dairy farmers through a field survey were used to analyze the simultaneous selection of multiple milk marketing channels. A multivariate probit approach was used and showed that market distance, milk production, artificial insemination (AI), market satisfaction, contractual agreement, quality management, cooperative membership, average milk price, number of the dairy cow, and quantity of milk sold affected farmers milk marketing channel choice. The outcome suggests that policies aimed at strengthening the use of well-organized milk cooperative to access appropriate technology; enhancing milk quality management to ensure milk safety along the milk channel; introducing milk quality incentives; promoting vertical coordination through strengthening the existing informal contractual agreement; establishing advanced milk payment system and improving the volume of milk production could enhance the distribution channel of the study area milk marketing particularly, and developing nation generally.

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Analysis of Determinants of Vertical and Horizontal Integration among Smallholder Dairy Farmers in Lower Central Kenya

Cited by 20 publications

References 18 publications

Determinants of outlet choices by smallholder onion farmers in Fogera district Amhara Region, Northwestern Ethiopia

Determinants of outlet choices by smallholder onion farmers in Fogera district Amhara Region, Northwestern Ethiopia

Determinants of Households’ Market Participation around Community Milk Cooling Plants, Western Kenya

Urban and Peri-urban Milk Market Channel Choice Using Multivariate Probit Approach: Evidence from Arsi Highland of Ethiopia

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