Journal of Development and Agricultural Economics
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Article Number - 73E8B2848136


Vol.6(11), pp. 455-465 , November 2014
DOI: 10.5897/JDAE2014.0561
ISSN: 2006-9774



Full Length Research Paper

Profit efficiency of dairy farmers in Kenya: An application to smallholder farmers in Rift Valley and Central Province



Leone Iga Mawa
  • Leone Iga Mawa
  • Department of Markets, Gender and Livelihoods, International Livestock Research Institute (ILRI), P. O. Box 30709-00100, Nairobi, Kenya.
  • Google Scholar
Mutuku Muendo Kavoi
  • Mutuku Muendo Kavoi
  • Faculty of Agriculture, Jomo Kenyatta University of Agriculture and Technology, P. O. Box 62000-00200, Nairobi, Kenya.
  • Google Scholar
Isabelle Baltenweck
  • Isabelle Baltenweck
  • Department of Markets, Gender and Livelihoods, International Livestock Research Institute (ILRI), P. O. Box 30709-00100, Nairobi, Kenya.
  • Google Scholar
Jane Poole
  • Jane Poole
  • Research Methods Group, International Livestock Research Institute, P. O. Box 30709-00100, Nairobi, Kenya.
  • Google Scholar







 Received: 21 January 2014  Accepted: 20 August 2014  Published: 01 November 2014

Copyright © 2014 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


The dairy industry in Kenya is an important source of livelihood among the smallholder farmers who supply over 70% of the total milk. However, there is a growing concern on rising costs of milk production among farmers. The study assessed profit efficiency of smallholder dairying in the Rift Valley and Central Provinces of Kenya using stochastic frontier analysis for estimating farm level profit efficiency and identifying the specific determinants of efficiency. The results showed that the farmers are fairly profit efficient with an average of about 68%. Cost of fodder produced on farm significantly improved profit efficiency among farmers. However dairy profit efficiency can be enhanced if fodder production is embraced, as well as other supplemental feed technologies that are commensurate with local conditions. Institutional policy reforms on smallholder dairying will help protect the industry and its sustainability for smallholders.

 

Key words: Dairy, profit efficiency, stochastic frontier, smallholder farmer.

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APA Mawa, L.I ., Kavoi, M. M., Baltenweck, I., & Poole, J. (2014). Profit efficiency of dairy farmers in Kenya: An application to smallholder farmers in Rift Valley and Central Province. Journal of Development and Agricultural Economics, 6(11), 455-465.
Chicago Leone Iga Mawa, Mutuku Muendo Kavoi, Isabelle Baltenweck and Jane Poole. "Profit efficiency of dairy farmers in Kenya: An application to smallholder farmers in Rift Valley and Central Province." Journal of Development and Agricultural Economics 6, no. 11 (2014): 455-465.
MLA Leone Iga Mawa, et al. "Profit efficiency of dairy farmers in Kenya: An application to smallholder farmers in Rift Valley and Central Province." Journal of Development and Agricultural Economics 6.11 (2014): 455-465.
   
DOI 10.5897/JDAE2014.0561
URL http://academicjournals.org/journal/JDAE/article-abstract/73E8B2848136

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