The Challenges Facing Dairy Farmers in Kenya: A Case of Kiambu County

Abstract

The main purpose of the study was to assess the challenges facing dairy farmers in Kiambu County. The study was guided by the following research questions: What are the internal constraints facing dairy farmers in Kiambu County? What are the external constraints facing dairy farmers in Kiambu County? What are the industry constraints facing dairy farmers in Kenya? The study adopted a descriptive survey research design. The study population comprised of 14,000 dairy farmers in Kiambu County spread out in 5 towns. The study applied stratified random sampling technique to select a sample size of 280 respondents. In this study, the data collection instruments were the questionnaires containing both open ended and close ended questions. The study generated both qualitative and quantitative data. Data obtained from the questionnaires was processed through editing and coding and then entering the data into a computer for analysis using descriptive statistics for all the three variables which were based on the three research questions. Descriptive statistics which include measures of central tendency (mean) and measures of variability (standard deviation or variance) were used. Correlation analysis was also carried out. All the data analysis was carried out with the help of Statistical Package for Social Sciences (SPSS) version 20. The findings on internal constraints revealed that 61% of the farmers faced the challenge of access to financial services; 59% of them were challenged with high transportation costs due to dilapidated roads. Another challenge was high cost of production as a result of insufficient access to factors of production. The farmers were also faced with the challenge of lack of access to market information, resource constraints, and limited access to banking services as well as little farmer education. The findings on external constraints revealed that the government could limit or even foreclose entry into industries with such controls as licensing requirements and limits on access to raw materials. Forty two per cent of the respondents also affirmed that government regulatory actions could often enforce significant changes in dairy farming practices and strategic approaches. Additionally, the study revealed that socio-cultural constraints, ecological as well market conditions were a challenge to farmers. The study also established that 38.1% of the farmers could not get access to latest technology. The findings on industry constraints established that early movers were able to pre-empt resources of various types including: superior positions in geographical space, technological space, and customer perceptual space. Additionally the possibility that new firms were likely to enter the dairy farming sector greatly affected competition. On the supply constraints, 54% of the dairy farming enterprises lacked adequate information necessary for optimal enterprise selection for them to take advantage of prevailing market demand. Finally the study revealed that poor prices for farm goods had negative consequences; a factor that led to compromising the quality of products produced in the market. The correlation results in the industry constraints indicated that the government and lack of access to technology were positively correlated (r= 0.811, p<0.01), and the relationship was extended to socio cultural factors (r= 0.861, p<0.01) . The study concluded that farmers faced the challenge of access to financial services, high transportation costs, poor storage facilities, and high costs of production as a result of insufficient access to factors of production. Other challenges they were faced with included lack of access to market information, resource constraints, limited access to banking services as well as little farmer education. The study also concluded that the government inhibited, and in some cases prevented entry into the industry. Finally that early movers are able to preempt resources of various types including: superior positions in geographical space, technological space, or customer perceptual space. The study therefore recommends the need to reduce these challenges. This can be achieved by issuing credit lines to boost activities of dairy farmers. The study also recommends that financial institutions, especially banks should increase the amount of loans in order to empower milk producers financially. Finally, the study recommends that the government has to put in place structures for dairy farmers to have a market for their dairy products so that they can achieve significant returns on their production and therefore improve their financial positions, which ultimately improve productivity.