Publication: Value Addition and Performance of Informal Dairy Enterprises in Kenya: A Product Diversification Perspective
Total Views 0
total viewsTotal Downloads 16
total downloadsDate
2018
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Mount Kenya University
Cite this Item
Abstract
The informal dairy sector in Kenya has undergone a tremendous transformation
from being an illegal enterprise to its legalization and adoption of “formal” status
as from 2007. Questions have been raised on whether a smallholder dominated
economy can diversify and whether smallholders participate significantly in product
diversification towards high value products. This empirical study sought to answer
this question by investigating the extent to which small scale milk vendors (SSMVs)
in the informal dairy sector diversify their product range through adding value to
milk in Kiambu County, Kenya. It also aimed at comparing the performance of milk
with that of value added dairy products. Cluster sampling and quota sampling were
used to select a sample size 250 dairy enterprises in the county. Questionnaires were
used to collect data and descriptive statistics as well as a t-test were used to analyze
the data and test the hypothesis. Results of the study showed that small scale milk
vendors (SSMVs) have the ability to diversify into high value dairy products which
attract higher profits compared to raw fresh milk. There were more women than men
engaged in SSMV business in the study group and well educated people who had not
been absorbed into formal employment had joined the informal dairy sector. Product
diversification into value added dairy products can therefore help to improve food
security and increase incomes of SSMVs hence reduce poverty. The study adds to the
available limited evidence on the contribution of the informal sector in the growth
and development of developing countries.
Description
Keywords
Informal dairy sector, Product diversification, Small scale milk vendors, Value Addition