This study aimed at evaluating the economic efficiency of milk production among small-scale dairy farmers in Mukurweini, Nyeri County, Kenya. Data were collected from 91 small-scale dairy farmers previously engaged in a nutritional study in 2013. The farmers had been sampled using purposive sampling technique. Data were collected using structured questionnaires, entered into statistical package for social science (SPSS). Stochastic frontier production and cost functions were analyzed using the MLE technique in FRONTIER 4.1. The results showed that farmers were operating at increasing returns to scale of 1.495. The number of lactating cows, amount of concentrates fed to a cow and the cost of animal health controls had a significant effect on milk production, while the production cost was influenced by the costs of fodder, concentrates, animal health and other operating expenses. The mean technical and allocative scores were 0.687 and 0.913 respectively. The milk production could be increased by 31.3% through proper utilization of the available resources such as fodder and concentrates, while the cost of production can be decreased by 8.7% without affecting the output. It was concluded that through efficient use of the available inputs, like the fodder and present technology, economic efficiency would be greatly increased. The study recommends subsidized prices for concentrates.

This study estimated the changes in economics and farmer perceptions towards calf welfare as a result of implementing low-cost calf housing enhancements and changes in calf management on Kenyan smallholder dairy farms. The trial involved 187 heifer calves from 150 farms allocated to either an intervention or control group. The interventions were improvements on the floor and roof of the calf housing, and training for the farmers on calf care. Animal-and farm-level characteristics were collected every two months over a 16-month period. Data gathered from questionnaires on the first and sixth visits were used to determine changes in calf management and farmer perceptions on calf welfare preand post-intervention. Partial budgeting was used to assess the additional costs and benefits associated with the intervention for heifer calves from birth to 15 months old. The net financial return of undertaking the housing and management improvements was positive at Ksh 6,594 (USD 65.94) per heifer, based on having a larger heifer at 15 months, reduced bedding and medical care costs, and lower risk of death. It is thus concluded that calf housing improvements and on-farm training on calf care are cost-effective and improve management and calf welfare perceptions of farmers.