This study examined the factors that determined dairy farmer households' choice of a commercial milk marketing channel in Kericho County, Kenya. Multistage cluster sampling technique was employed in collecting data from 432 dairy farmers and survey data was analyzed using multivariate probit regression model. Marginal effect results revealed that a unit change in household's pasture farm size and partnership in lobbying for better milk price increased the probability of selling milk only to commercial milk buyer by one and 19 percentage points respectively. The number of cows milked per day and milk storage/cooling raised the probability of selling raw milk to commercial buyers by 2.3 and 16.1 percentage points respectively. Commercial milk buyers valued security in raw milk supply which came from trusted relationships and from contracts with the dairy milk seller households. To increase the choices of commercial dairy milk marketing channels and hence the switching power of the dairy farmer households in Kericho County and by extension, Kenya as a whole, this study recommends strengthening the capacity of dairy farmer households by up scaling their technical knowhow and by enlarging their herd sizes. Further, the study recommends group formation, partnership development and increased financial investments in livestock milk markets by national and county governments.
This study analyzed market integration of dry maize grain in Kipkelion East and Kipkelion West Sub-Counties in Kericho County, Kenya. The objective of the study was to determine the correlation of prices between the terminal and source markets of dry maize grain. Purposive and stratified random sampling procedures were used to collect data from a sample of 156 maize traders. The survey data analysed using regression and Pearson's product-moment correlation models. Results shows that 53.8% of the dry maize grain traders were males and 46.2% were females with 46.2% dry maize grain traders having attained secondary school level of education. Regression and correlation results shows that a unit increase in the dry maize grain source market prices would result in a 98.2% increase in the terminal maize market prices. Pearson's Product-Moment correlation results showed that there was positive relationship between the terminal and the source market prices with 68% of variation in terminal market prices being explained by all the source market prices. High prices in the source markets would lead to higher prices as well in the terminal markets. In order to achieve market integration, improve market information flow and promote competitiveness between the source and terminal markets in the county and in the country, this study recommends the enactment of relevant policies by the government agencies, both in the county and in the national government. There is also need to improve market information flow in the county; particularly the use of information and communication technology in order to ensure timely and faster flow of information across the dry maize grains markets. If traders, producers and consumers are given timely market information, it will reduce cases of price shocks and promote market integration.
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