Dynamic Changes in Dairy Technologies Uptake in the Kenya Highlands

A number of African countries experienced since the mid 1980s a process of market liberalization that was expected to increase smallholders' access to inputs and outputs markets through the entry of private players. The effect on production, through uptake of improved technologies is however unclear. This paper aims at better understanding the dynamics of dairy technology uptake using a rich dataset of 874 households surveyed at two points of time. Using panel data enables to show the importance of differentiating 'permanent adopters' and 'temporary adopters'. Farmers with large land holdings are those who are able to have improved cattle at the two points of time, while those with smaller land size may not be able to maintain their animals on farm, either due to cash or land constraint. This has important policy implications in light of the current land policy reform that may introduce a lower ceiling to land size. Market liberalization has contrasting effects on dairy technology uptake. Results show that availability of formal milk marketing outlets has a positive effect on farmers' decision to keep improved cattle while at the same time increased level of inputs like concentrates feeding is found in areas with fewer formal marketing outlets. Given the current dynamic nature of the milk market, farmers adopt different strategies and more work is needed to better comprehend the relationship between market liberalization and dairy intensification.Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, C21, D1, O3, Q12,

Formal Milk Processing Sector in Assam: Lessons to be Learnt from Institutional Failure

Assam initiated organised development of milk processing way back in the mid 1960s. The total installed capacity of pasteurisation and chilling plants in the State is 159 thousand and 28.5 thousand litres per day, respectively. The current scenario of the formal milk processing segment in the state is however, grim. The created infrastructure is either largely defunct or grossly under-utilized. The functional plants are operating at very low level of their installed capacity, have limited product profile, high returns of marketed milk, substantial handling and curdling losses, low productivity of capital and labour and huge operational losses. The poor performance of the plants has been attributed to the establishment of milk processing units without an appropriate assessment of output demand and input supply and ascertainment of economic viability of the plants. In addition, the supporting institutional and infrastructural mechanism has not been put in place and a systematic business and management plan to run the system has not been formulated. Drawing lessons from the institutional failure, the study has suggested some possible interventions and policy initiatives for strengthening the dairy processing activities in the state of Assam.Agricultural and Food Policy,

Smallholder Dairy Farmers’ Access to Modern Milk Marketing Chains in India

The smallholder dairy farmers’ access to modern milk marketing chain has been assessed in India by collecting data at the farm level in two states, viz. Bihar and Punjab. These states are among the largest milk producing states of the country but depict stark variations in terms of milk productivity and per capita milk availability. Another significant feature is the emergences of modern milk marketing chains in both the states. The study has shown that in spite of the growing presence of modern milk supply chains, the traditional milk supply chain is still dominant in the Indian milk market. Its presence is even more pronounced in less-developed states like Bihar. However, the traditional milk supply chain is being replaced, albeit slowly, with the commercialization of dairying. The structure of the milk marketing in Punjab has depicted this conclusion. The study has concluded that the modern milk supply chain seems to have an inclusive structure and the resource-poor dairy farmers are not excluded from the modern milk supply chain. The study has argued that the traceability and food safety issues will further strengthen the modern milk supply chain. The scalability of the modern milk supply chain will depend on the development of milk collection and transportation facilities and incentive pricing for a quality produce.Milk marketing chain, Smallholders, Dairy farmers, Modern milk marketing chain, Bihar, Punjab, Agricultural and Food Policy, Q12, Q13,

CATTLE AS ASSETS: ASSESSMENT OF NON-MARKET BENEFITS FROM CATTLE IN SMALLHOLDER KENYAN CROP-LIVESTOCK SYSTEMS

This paper uses data from a survey of two hundred and fifty cattle households in three cattle keeping systems; intensive, semi-intensive and extensive systems to estimate the value of non-market, socio-economic benefits of cattle in Kenya. These benefits of cattle keeping are of special importance in developing countries, where financial markets function poorly and opportunities for risk management through formal insurance generally absent. However, when estimating the total contribution of livestock, these non-market functions are often ignored since they are difficult to value, yet they may contribute to a better understanding of livestock production systems. The use of contingent valuation method is employed in this study to elicit these non-market values. Econometric estimations are then used to assess the factors influencing the non-market benefits function. The results indicate that these benefits are highly valued by cattle keepers and comprise approximately 20% of the animal's total value across the three systems. They are influenced by various production system and household related factors. Implications for policy are drawn.Livestock Production/Industries, QQ112, QQ118, DD223,

Livestock Sector in North-Eastern Region of India: An Appraisal of Performance

Although agriculture is the prime source of livelihood for a majority of rural population in the North-Eastern region (NER) of India, dependence on livestock as an alternative source of income is significant. Responding to the burgeoning demand for livestock products in a sustainable manner is a big challenge. The widening gap between the demand and supply of livestock products can be met through bringing out changes in the production structure or opening up the international trade. In this context, an analysis of performance and factors influencing development of the livestock sector in NER has been carried out. The growth of livestock sector has been found slower in the NER than at the national level. However, a significant proportion of landless labourers, small and marginal farmers have access to livestock resources and acceleration in the growth of livestock in NER offers significant opportunities for household income augmentation and employment generation. Several factors identified to influence households’ decision to rear livestock include availability of labour, occupation, caste, farm-size, availability of irrigation, and access to information sources. The study has shown that the NE states should take technical, institutional and policy initiatives for the improvement of breeds, feed availability, disease control and food safety of livestock.Livestock Production/Industries,

Determinants of adoption of dairy cattle technology in the Kenyan highlands: a spatial and dynamic approach

Adoption of high grade cows by smallholders is driven by the objective of increased milk production, for both home consumption and sale. Smallholders are believed to have a comparative advantage in rearing grade cows, but constraints to adoption are numerous: the cost of a grade cow is relatively high, and the dairy enterprise is risky. Risks include animal diseases and lack of reliable marketing outlets. Marketing risks are a common preoccupation for smallholders but it is particularly relevant for milk, which is bulky, highly perishable, and sold daily. Using a dynamic and spatial framework. this study tests the hypothesis that access to credit facilitates adoption. GIS-derived distances are computed and introduced in a duration model in order to control for market access. Time is expected to play a key role in adoption and two time dimensions are introduced: an idiosyncratic time describing the conditions faced by the household at the beginning of the spell and historical time accounting for the changes in the external conditions. Results show that access to credit cannot be excluded as a reason for delaying adoption of grade cows. Policy changes over time are also found to play a role in the adoption process, as the reduced availability of reliable market channels and veterinary services after liberalisation in 1992 are shown to have shifted down the adoption function

Dairy Cow Ownership and Child Nutritional Status in Kenya

This study examines the hypothesis that dairy cow ownership improves child nutritional status. Using household data from coastal and highland Kenya, three econometric model formulations are estimated. Positive impacts on chronic malnutrition are observed for coastal Kenya. No negative effects on acute or chronic malnutrition are found for either region.Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,