Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 435

Full Length Research Paper

Economic efficiency of milk production among small-scale dairy farmers in Mukurweini, Nyeri County, kenya

Maina Florence
  • Maina Florence
  • Department of Agricultural Economics, Faculty of Agriculture, University of Nairobi, Kenya.
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Mburu John
  • Mburu John
  • Department of Agricultural Economics, Faculty of Agriculture, University of Nairobi, Kenya.
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Gitau George
  • Gitau George
  • Department of Clinical Studies, Faculty of Veterinary Medicine, University of Nairobi, Kenya.
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VanLeeuwen John
  • VanLeeuwen John
  • Department of Health Management, Atlantic Veterinary College, University of Prince Edward Island, Canada.
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Negusse Yigzaw
  • Negusse Yigzaw
  • World Agroforestry Centre (ICRAF), Nairobi, Kenya.
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  •  Received: 20 December 2017
  •  Accepted: 12 February 2018
  •  Published: 30 May 2018

Abstract

This study aimed at evaluating the economic efficiency of milk production among small-scale dairy farmers in Mukurweini, Nyeri County, Kenya. Data were collected from 91 small-scale dairy farmers previously engaged in a nutritional study in 2013. The farmers had been sampled using purposive sampling technique. Data were collected using structured questionnaires, entered into statistical package for social science (SPSS). Stochastic frontier production and cost functions were analyzed using the MLE technique in FRONTIER 4.1. The results showed that farmers were operating at increasing returns to scale of 1.495. The number of lactating cows, amount of concentrates fed to a cow and the cost of animal health controls had a significant effect on milk production, while the production cost was influenced by the costs of fodder, concentrates, animal health and other operating expenses. The mean technical and allocative scores were 0.687 and 0.913 respectively. The milk production could be increased by 31.3% through proper utilization of the available resources such as fodder and concentrates, while the cost of production can be decreased by 8.7% without affecting the output. It was concluded that through efficient use of the available inputs, like the fodder and present technology, economic efficiency would be greatly increased. The study recommends subsidized prices for concentrates.
 
Key words: Stochastic frontier, milk production, technical, allocative, economic, efficiency.