Smallholder Dairy Farmers’ Typologies, Collective Action, and Commercialisation in Kenya

Abstract

Smallholder farmers in Kenya are the majority players in the dairy sector and need consideration in generation of policies to improve economic performance. The problem is smallholder dairy farmers in Kenya have continued practising subsistence farming without transitioning to commercial enterprises, hence the observed poor economic status. The objective of this study was to analyse smallholder dairy farming typologies, collective action, and commercialisation in Kenya. The study was conducted in Nyandarua and Nakuru counties, where there are a large number of smallholder dairy farmers. The study used a multistage sampling technique to select a random sample of 380 dairy farmers. Structured questionnaires and focus group discussions were the tools for data collection. The data was analysed using principal component analysis, cluster analysis, propensity score matching, and household commercialisation index models. The results showed that there were three significantly different types of smallholder dairy farmers i.e. low resource endowed and low market oriented, moderate resource endowed and moderate market oriented, and high resource endowed and high market oriented. The distinguishing factors for these dairy farming typologies were output, land, household assets, and infrastructure. Resources, capital, infrastructure, and extension service related challenges characterised the smallholder dairy sector. The majority of the smallholder dairy farmers practiced collective action, with most being in self-help groups. Farmers joined groups depending on group leadership, education of leaders, leadership period, age of group, conduct of members, and execution of rules and regulations. Factors that affected group performance were type of group, gender of leaders, motivation to leaders, approach to absenteeism, years of group existence, and the reasons for lending to the group members. The study revealed moderately high level of commercialisation in the study area even though there was low level of commercialisation in Nakuru County compared to Nyandarua County. Major constraints to smallholder dairy commercialisation included poor quality and quantity of inputs, low output prices, poor dairy related infrastructure, and inadequate extension services. The study concluded that milk production was relatively low among the farmers, who were heterogeneous in demographic and socio-economic characteristics. There was moderate farmer group membership in the study area, and also a substantial increase in milk sales for farmers who belonged to groups. Even though farmers practised commercialization, the levels varied across the study area. The study proposes a revision of policies to improve land accessibility, feed availability, extension, physical infrastructure, financial resources, and technological innovations, which are important to improve dairy production. The policies need to be accustomed to the needs of smallholder dairy farmer typologies. Farmer groups membership need to be emphasised to address the challenges of production and marketing. Policies should focus on group sensitisation and capacity building. Deliberate efforts should be made to improve group membership and management for sustainable cooperative mentality among members. Smallholder dairy commercialisation needs improvement in marketing infrastructure, adequate and quality marketing information and institutional support to lower the transaction costs.