Determinants affecting value addition of dairy Products: a case study of selected dairy Entrepreneurs in Sotik division, Bomet County
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Date
2014-07-03
Authors
Rono, Langat Daisy Chelangat
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Abstract
The Kenyan dairy industry is based mostly on smallholder milk production. About six
hundred thousand smallholders produce some seventy percent of the country's marketed
milk. Approximately fifty six percent of this milk is sold raw in the unregulated informal
market; leading to public concerns about hygiene and safety. The aim of the study was to
investigate determinants affecting value addition of dairy products in Sotik Division. The
specific objectives were to examine the effects of cost of inputs on value addition of
dairy products, investigate the effects of marketing skills on value addition of dairy
products, examine the effects of entrepreneurial skills on value addition of dairy products
and explore the effects of technologies on value addition of dairy products. This study
used descriptive survey which is a method of collecting information by interviewing or
administering a questionnaire to a sample of individuals. The subjects of the study were
eighty small scale dairy entrepreneurs operating in the Sotik Division. The division was
stratified into six locations in which the subjects reside. The primary data was collected
through administering questionnaires to the respondents.. Secondary data was collected
through reviewing previous studies. The data was analyzed by use of both quantitative
and qualitative method of data analysis. The quantitative measures were used to generate
descriptive statistics to analyze for frequencies, means and percentages while the
qualitative measures was analyzed through summarizing key findings, explanations
interpretations and making conclusions. The results were reported using descriptive
statistics such as frequency tables. The findings of the study indicated cost of transport,
raw materials and labour as key determinants in value addition of dairy products. It
indicated that high cost of these inputs has hampered the growth of the dairy enterprises.
The study also found out that the dairy entrepreneurs do not have adequate marketing and
entrepreneurial skills. They also did not access technology on value addition. All theses
have adversely affected the value addition of dairy products. To address these issues it is
recommended that the road network is improved and the dairy entrepreneurs can be
encouraged to come together to form groups or cooperatives so that they can transport
together hence take advantage of economies of scale. It is also recommended that the
relevant counties (where dairy enterprises can thrive) should therefore put in place
programmes and policies that address these issues so as to enhance value addition of
dairy products and hence spur the economic growth of the respective counties. Further
research should be done to identify challenges affecting women entrepreneurs, effect of
government policies on dairy enterprises and value addition technologies that are
relevant, accessible and affordable.
Description
Department of Business Administration, 63p. 2013, HD 9275 .L3