WP43-Productivity-Trends-and-Performance-of-Dairy-Farming-in-Kenya

Table of Contents
Abstract ...................................................................................................................................... i
Acknowledgments ...................................................................................................................... ii
List of Tables ............................................................................................................................ iv
List of Figures .............................................................................................................................v
1. Background ..........................................................................................................................1
2. Overview of the Kenyan Dairy Sector ..................................................................................3
2.1 Government Interventions .............................................................................................7
3. Data and Methods ................................................................................................................9
3.1 Data and Sampling ........................................................................................................9
4. Results and Discussion ....................................................................................................... 12
4.1 Milk Production and Productivity Growth: Panel Data Analysis (2000-2010) ............. 12
4.1.1 Ownership of Cows by Households with a Dairy Enterprise ................................. 12
4.1.2 Milk Productivity Trends (2000-2010) ................................................................. 15
4.1.3 Milk Marketing .................................................................................................... 18
4.2 Performance of the Dairy Enterprise: Cross Sectional Data ......................................... 21
4.2.1 Characteristics of Households with Dairy Enterprises .......................................... 21
4.2.2 Farm Level Performance of the Dairy Enterprises ................................................ 22
4.2.3 Cost Structure of the Dairy Enterprises ................................................................ 23
4.2.4 Gross Margin Analysis ......................................................................................... 24
4.2.5 Participation in Milk Markets ............................................................................... 29
5. Summary of Key Findings and Conclusion ........................................................................ 32
6. Recommendations for Policy.............................................................................................. 34
References ................................................................................................................................ 36
iii