Analysis of Factors Influencing Choice of Milk Marketing Channels among Dairy Value Chain Actors in Peri-urban Areas of Nakuru County, Kenya

Abstract

In Nakuru County of Kenya, the urban population serves as a market for milk produced both within the outskirts and neighbouring counties. Increase in human population has led to high demand for milk and milk products, a phenomenon that has created opportunities for dairy value chain actors. Using a random sample of 200 farmers, this study investigated factors influencing urban dairy farmers’ choice milk marketing channels in Nakuru County. Data analysis using multinomial logit regression revealed that age, education, dairying experience, household size and frequency of milk purchases had significant influences on the type of channel chosen by the actors. To increase milk market participation and milk marketed volume, efforts should be made to strengthen the capacity of existing small and medium-scale farmers who showed a potential to enlarge their herds. It is also imperative for government and other development agencies to engage dairy value chain actors to minimize on their transaction cost for a smooth business to enhance food and nutrition security. The findings of the current study will be useful to dairy value chain actors in focusing on sustainable milk markets and dairy production in general.

Key words: Marketing channels, Dairy, Value chain