Organizational challenges and the institutional environment: a comparative analysis of dairy cooperatives in Kenya and Morocco

Ton, Giel; Haddad, Nora Ourabah; Bijman, Jos; Sraïri, Mohamed Taher; Mshenga, Patience

doi:10.18174/399770

Cited by 4 publications

(8 citation statements)

References 21 publications

(27 reference statements)

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“…POs act as intermediaries between farmers and processors or as processors themselves (Makoni et al, 2014). Both bargaining and processing POs are found in the formal value chain in Kenya (Ton et al, 2016).…”

Section: The Dairy Value Chain In Kenyamentioning

confidence: 99%

“…The processing and bargaining POs selected are representative as they share similar characteristics with excluded POs in terms of size, resource capacity, functions and services. We used reports from the Kenya Dairy Board, Agriterra (Kagathi, 2014), and from a joint study by Wageningen University and Research and the Food and Agricultural Organization (Ton et al, 2016) as well as journal articles (O'Brien and Cook, 2016) to verify the representativeness of selected POs. Further support information was given by the government Fig.…”

Section: Farm Surveymentioning

confidence: 99%

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Adoption of food safety measures: The role of bargaining and processing producer organizations

Mwambi

Bijman

Mshenga

et al. 2020

NJAS: Wageningen Journal of Life Sciences

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Increasing demand for safe food in developing countries entails meeting stringent food safety requirements. Food retailers and regulatory bodies impose food safety measures related to production and handling of farm produce. For smallholders to remain competitive in such a system, institutional arrangements are necessary. We examine the role of producer organizations (POs) in influencing safe food production behaviours among farmers. Using data from 11 expert interviews and a quantitative survey involving 595 smallholder dairy farmers in Kenya, a propensity score matching estimation is employed to assess membership effects. We show that membership in POs positively and significantly influences smallholders' adoption of food safety measures related to milk storage and the milking area. We highlight the importance of social incentives in improving food safety adoption among farmers even when price incentives are absent. Our recommendation is that PO policies that alleviate barriers to food safety adoption among farmers will be helpful in scaling up adoption.

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Section: The Dairy Value Chain In Kenyamentioning

confidence: 99%

Section: Farm Surveymentioning

confidence: 99%

Adoption of food safety measures: The role of bargaining and processing producer organizations

Mwambi

Bijman

Mshenga

et al. 2020

NJAS: Wageningen Journal of Life Sciences

Self Cite

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“…Some cooperatives only functioned as bulking nodes for raw milk collected by private processors, whereas other cooperatives have their own processing units, e.g. Githunguri Dairy Co-operative Society (Ton et al , 2016). Other cooperatives, for instance, the Othaya Dairy Cooperative Society, buy milk from local farmers and resell it further to Brookside (Hambloch et al , 2014).…”

Section: Competition In the Dairy Market In Kenyamentioning

confidence: 99%

Effects of mergers on processed milk market in Kenya

Nderitu

Ndiritu

2018

JADEE

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Purpose The purpose of this paper is to determine the effects of the mergers and acquisitions on market prices, consumer welfare and aggregate profit of the merging firms and those of the non-merging firms and, therefore, answer the question on the overall effect of mergers and acquisitions on different performance measures on milk market using data from all the 34 licensed and active milk processors in Kenya. Design/methodology/approach A new model of analysis as developed from the Canadian Competition Policy maker, i.e. The Canadian Competition Policy merger simulation model, was used. Findings The study found that mergers and acquisitions lead to increase in market shares of the merging firms. The study also found that mergers and acquisitions have a significant effect on product price in the processed milk market. From the findings, the study concludes that mergers and acquisition not only lead to an increase in market shares of both merging and non-merging processed milk firms but also create market dominance due to reduction in the number of market players in the industry. Research limitations/implications The study uses the data for the licensed and active milk processors in the industry. The dormant and the non-licensed processors are excluded. Future studies can use the farm-gate prices as opposed to final consumer prices for the processed milk market. Originality/value The study contributes toward providing information on the effect of buyouts on social welfares, prices, market share, profitability and other relevant market equilibrium performance measures in the processed milk market in Kenya.

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“…We purposively selected the POs based on accessibility, the receptiveness of the PO staff, and representativeness of either bargaining or processing POs in the counties. We used reports from the Kenya Dairy Board, Agriterra (Kagathi, 2014), and from a joint study by Wageningen University and Research and the Food and Agricultural Organization (Ton et al, 2016) as well as journal articles to verify the representativeness of selected POs.…”

Section: Methodsmentioning

confidence: 99%

“…At minimum, the POs act as intermediaries between farmers and processors thus performing milk collection, bulking and cooing functions (Makoni et al, 2014). Advanced organizations process milk and provide additional dairy production-related services (Ton et al, 2016;Kilelu et al, 2017a).…”

Section: The Kenyan Dairy Value Chainmentioning

confidence: 99%

Essays on producer organizations : Business models, social inclusion and food safety

Mwambi¹

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Producer organizations (POs) in developing countries are adopting diverse business models to remain competitive in the modern agri-food value chains. However, not much is known about the characteristics and types of these POs. This study employs business model framework to assess the business model components of POs and derive a typology based on these components. Further, the global value chain theory is used to draw implications of a PO business model for value chain coordination and upgrading. The Kenya dairy value chain is used as a case study. The paper finds that POs use a mix of business model components including membership, governance structure, legal form, key activities, value proposition, key resources, customer segment, revenue streams, and cost structure. Further, the study develops a typology consisting of bargaining, cooling, hub, and processing business models, which POs adopt. Findings indicate responsiveness of POs to coordination and upgrading in value chains. Specifically, increasing coordination and upgrading entails a shift from a bargaining business model to a processing business model. This, in turn has implications for investment, which can threaten social inclusion and hence rural development.

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Organizational challenges and the institutional environment: a comparative analysis of dairy cooperatives in Kenya and Morocco

Cited by 4 publications

References 21 publications

Adoption of food safety measures: The role of bargaining and processing producer organizations

Adoption of food safety measures: The role of bargaining and processing producer organizations

Effects of mergers on processed milk market in Kenya

Essays on producer organizations : Business models, social inclusion and food safety

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