Kenyan Dairy Policy Change: Influence Pathways and Economic Impacts

Abstract

Marketing, transporting, processing, and consuming dairy products contribute significantly to the livelihoods of many poor Kenya households. This study analyses the impact of recent research supporting policy changes to liberalize informal milk markets. The study found that behavioural changes in dairy sector participants arising from the research evidence-supported policy and regulatory changes led to an average 9% reduction in milk marketing margins, and a significant increase in the number of licensed small-scale milk vendors. A $10 million research and outreach effort over 8 years resulted in estimated total benefits that continue to be realized of at least 2.17 billion ($X) each year, largely captured by consumers, producers, and milk vendors. The net present value of this policy-oriented research investment was estimated to be US$ 230 million.

Are food insecure smallholder households making changes in their farming practices? Evidence from East Africa

“…This is the thrust of interventions aimed at identifying and strengthening institutional arrangements that improve the access of smallholders to technical and management information, capital and financing, labor and regional markets, where there are many examples of success in East Africa (such as Spielman and Pandya-Lorch 2009;Kaitibie et al 2010). As Jayne et al (2006) suggest, the success of farmer-driven organizations and how well they coordinate with both public and private sector players to streamline the food system without excluding smallholders, will play a key role in whether or not small farms are able to take up improved practices that will allow them to adapt to their changing circumstances and, in the longer run, to a changing climate as well.…”

Agricultural research for nutrition outcomes – rethinking the agenda

“…2 for improving nutrition and health in animal source food value chains will be useful, emphasizing the importance of partnerships with associations of traders who play a key role in linking farmers to food markets as well as the enabling by policy makers to allow appropriate risk management and quality / price tradeoffs. A good example is the public health risks and enabling policy research for informal milk markets in Kenya (Kaitibie et al 2010). As value chains and food systems become more complex, private sector companies will be more important and the relationship with enabling policy, investment and regulation more complex.…”

Sustainable development in East Africa: impact evaluation of regional agricultural development projects in Burundi, Kenya, Rwanda, Tanzania, and Uganda

“…African countries look beyond state boundaries and pursue regional harmonization of agricultural policies to support regional market development and regional public goods that can be readily developed in one country and deployed in others. These policies include: multiplication and distribution of quality seeds in Southern and Eastern Africa (Langyintuo et al, ; Rohrbach, Minde, & Howard, ), intra‐regional trade (Geda & Seid, ), and food standards (Heggum, ; Kaitibie, Omore, Rich, & Kristjanson, ; Walker, Ryan, & Kelley, ). Harmonization of public policies in Rwanda have incentivized smallholder farmers to adopt and uptake modern seeds, inputs and credit facilities (Dawson et al, ), notwithstanding the challenges of sole cropping (Isaacs, Snapp, Chung, & Waldman, ), and landlessness, and inequality and disruption to local trade (Ali, Deininger, & Goldstein, ; Habyarimana & Nkunzimana, ; Rushemuka, Bizoza, Mowo, & Bock, ).…”