Will Small-Scale Dairy Producers in Kenya Disappear Due to Economies of Scale in Production?

There is growing policy concern regarding the competitiveness of small-scale livestock production in the wake of the contemporary livestock revolution in many developing countries. In Kenya, this debate has focused on economies of scale and the undue influence of policy distortions on promoting the scaling up of dairy farms. This paper seeks to investigate economies of scale in Kenyan dairy in terms of relative profit efficiency at different levels of output, and identify policy and technology options to help small-scale farmers develop solutions to the challenges of competition. Data were collected from 204 dairy producers of different farm sizes in rural Kiambu and Thika, and urban Nairobi districts and a stochastic frontier model approach was used to analyze the determinants of profitability and inefficiency. Unit profitability per farm ranged between US$0.13 - US$0.16 per liter of milk with no significant variation across scales of farm. However, at all given levels of scale of farm, inefficiency significantly contributed to variability in profitability across farms. Scale had no significant effect on efficiency, confirming the relative competitiveness of small-scale dairy producers. Dairy farmers with commercial poultry achieved higher relative profit efficiency as poultry waste was fed to cattle. Rural location relative to Nairobi also increased efficiency. Linking rural areas and major market centre with good roads, strengthening of farmers' co-operative societies and exploring use of cheaper raw materials in the manufacture of concentrate feeds may strengthen the competitive position small dairy farms versus large ones.Dairy Production, Stochastic Production Frontier, Efficiency, Profitability, Livestock Production/Industries, C21, Q12,

Fertilizer use in semi-arid areas of Kenya: analysis of smallholder farmers' adoption behavior under liberalized markets

This paper analyzes the factors influencing farm level fertilizer adoption decisions under an era of liberalized markets in Kenya using a Tobit regression model. The level of education of the household head, experience using fertilizer, growing a cash crop, availability of fertilizer in rural retail outlets, availability in small packages, and land pressure positively influenced fertilizer use, while the size of family labour and location in the drier semi-arid zone were negatively associated with fertilizer use. The paper concludes with policy and research implications for strategies aimed at achieving greater fertilizer use on smallholder farms

BIOTECHNOLOGY CAN IMPROVE FOOD SECURITY IN AFRICA

By the year 2025, 83% of the expected global population of 8.5 billion will be living in developing countries. The capacity of global resources and technologies to satisfy the demands of this growing population for food and other agricultural commodities is not assured. In 25 years, Africa's population is projected to increase to 1.3 billion, bringing about intense interest in Africa's agricultural and economic performance, and the potential impact of biotechnology on the economy and the welfare of the continent. Under Trade-Related Intellectual Property Rights (TRIPS), most processes and many products of biotechnology research are patentable. African countries generally have weak national scientific infrastructure and capacity to innovate and patent new materials as well as enforce biosafety requirements. In order for countries to access biotechnology products or technologies, it will become increasingly important to have policies and procedures on intellectual property rights in place at the national and institutional levels. In view of the extent of the collaborative international programs taking place, strong local partners are required to expedite the adaptation of technologies and materials that are developed through collaborative research. Lack of biotechnological innovations or their limited diffusion by farmers has increased the technological gap with developed countries. Biotechnology will affect even the most isolated villages in various ways. It will neither be wise nor justified for African countries not to effectively participate in this revolution and fight for gaining some of its expected advantages. The current policy indifference will not help our farmers. Key words: biotechnology, patent, global, agriculture, genetically modified (GM), transgenic, biosafety, food security Résumé LA BIOTECHNOLOGIE PEUT AMÉLIORER LA SÉCURITÉ ALIMENTAIRE EN AFRIQUE D'ici l'an 2025, 83% de la population mondiale prévue à 8,5 milliards vivront dans des pays en développement. La capacité des ressources et des technologies mondiales de satisfaire les demandes de cette population croissante en matière d'alimentation et d'autres ressources agricoles n'est pas assurée. Selon les projections, dans 25 ans la population de l'Afrique augmentera de 1,3 milliards et s'accompagnera d'un intérêt intense aux performances agricoles et économiques de l'Afrique, ainsi que l'impact éventuel de la biotechnologie sur l'économie et le bien-être du continent. D'après les Droits de Propriété Intellectuelle en matière de Commerce (TRIPS), la plupart des procédés et des produits de la recherche en biotechnologie sont brevetables. En général, les pays africains ont des infrastructures scientifiques faibles au niveau national et de faibles capacités d'innover et de breveter de nouveaux produits et de mettre en vigueur les exigences de la prévention des risques biotechnologiques. Pour que ces pays aient accès aux produits ou aux technologies de la biotechnologie, il deviendra de plus en plus important d'avoir en place des politiques et des procédures sur les droits de propriété intellectuelle aux niveaux national et institutionnel. Etant donné l'ampleur des programmes internationaux de collaboration qui sont introduits, des partenaires locaux solides sont nécessaires pour expédier l'adaptation des technologies et des produits qui sont mis au point à travers une recherche conjointe. Le manque d'innovations biotechnologiques ou leur diffusion limitée de la part des agriculteurs ont élargi l'écart technologique par rapport aux pays développés. La biotechnologie affectera même les villages les plus isolés de plusieurs manières telles que celles associées à la baisse de la production et des coûts des transactions. Il ne sera ni sage ni justifié pour les pays Africains de ne pas participer efficacement à cette révolution en vue de lutter pour gagner certains des avantages qui en sont attendus au lieu de l'indifférence de la politique actuelle. Mots clés: Biotechnologie, breveter, mondial, agriculture, génétiquement modifiés (GM), trans-génique, prévention des risques biotechnologiques, sécurité alimentaire. (Af. J. of Food and Nutritional Sciences: 2002 2(2): 14-21

Determinants of farmers' preference for alternative animal health service providers in Kenya: a proportional hazard application

One hundred and eighty farmers in the semiarid Makueni district, Kenya, were surveyed using a structured questionnaire. The objective was to assess factors that influence farmers' preference for alternative veterinary service providers following the liberalization of veterinary services. A proportional hazard model was fitted to the data because of its ability to accommodate simultaneously the attributes of both the chooser and the choice. Of the three service providers considered in the study, community-based animal health workers were the most preferred followed by veterinary surgeons and animal health assistants. Farmers' age and education level were inversely but significantly related to the probability of choosing any of the three service providers. Distance to the preferred service provider was the main choice-specific attribute with a significant impact on the choice probability. A high preference for community-based animal health workers was noted suggesting the possibility of poorly trained animal health workers dominating the veterinary services market in remote areas of Kenya. Efforts geared toward the legalization of community-based animal health workers in Kenya and elsewhere in the developing countries should first address the constraints that hinder the penetration of professional veterinary service providers in remote areas. Copyright 2006 International Association of Agricultural Economists.

Will Small-Scale Dairy Producers in Kenya Disappear Due to Economies of Scale in Production?

There is growing policy concern regarding the competitiveness of small-scale livestock production in the wake of the contemporary livestock revolution in many developing countries. In Kenya, this debate has focused on economies of scale and the undue influence of policy distortions on promoting the scaling up of dairy farms. This paper seeks to investigate economies of scale in Kenyan dairy in terms of relative profit efficiency at different levels of output, and identify policy and technology options to help small-scale farmers develop solutions to the challenges of competition. Data were collected from 204 dairy producers of different farm sizes in rural Kiambu and Thika, and urban Nairobi districts and a stochastic frontier model approach was used to analyze the determinants of profitability and inefficiency. Unit profitability per farm ranged between US$0.13 - US$0.16 per liter of milk with no significant variation across scales of farm. However, at all given levels of scale of farm, inefficiency significantly contributed to variability in profitability across farms. Scale had no significant effect on efficiency, confirming the relative competitiveness of small-scale dairy producers. Dairy farmers with commercial poultry achieved higher relative profit efficiency as poultry waste was fed to cattle. Rural location relative to Nairobi also increased efficiency. Linking rural areas and major market centre with good roads, strengthening of farmers' co-operative societies and exploring use of cheaper raw materials in the manufacture of concentrate feeds may strengthen the competitive position small dairy farms versus large ones

Some Constraints and Opportunities in the Privatization of Animal Breeding Services in Kenya

The objective of the dairy development policy is to develop and promote an efficient and self-sustaining dairy industry with the aim of achieving the development goals of poverty alleviation, industrialization and employment creation especially in the rural areas, thereby enhancing the per capita income in the country. With respect to animal breeding which is central to the attainment of these objectives, short term policy objectives will be geared towards development of action programme to enhance effective delivery of artificial insemination (AI) services is one such measure, which was instituted in 1991. Available data between 1990 and 1998 show a decrease in the total number of insemination and disparity in the performance of the A.I services in different parts of the country since the advent of privatization. Total national inseminations decreased in total from 394,361 in 1990 to 104,661 in 1997, a decrease of 73.5% despite the bringing on board of the private sector. The contribution of the private in 1992. In 1992, private sector inseminations stood at 3.9% of the total national inseminations, increasing to 94.3% in 1997. With this in mind, the performance of animal breeding services is reviewed with a view of establishing the reasons for the decrease in total national inseminations and explores some opportunities for improvement. The Kenya Veterinarian Vol. 27 2004: pp. 45-4