Journal of Development and Agricultural Economics
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Article Number - D2DF09E64784


Vol.9(7), pp. 168-177 , July 2017
DOI: 10.5897/JDAE2017.0813
ISSN: 2006-9774



Full Length Research Paper

Dairy farmer households’ farm gate milk price heterogeneity in Kericho County, Kenya



Elijah K. Ng’eno
  • Elijah K. Ng’eno
  • Department of Agricultural Biosystems and Economics, University of Kabianga, Kenya.
  • Google Scholar







 Received: 30 January 2017  Accepted: 10 May 2017  Published: 31 July 2017

Copyright © 2017 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


This study aimed at identifying factors affecting farm gate milk price heterogeneity in dairy farmer households in Kericho County, Kenya. Multistage cluster sampling technique was used to collect data from 432 dairy farmer households. To estimate survey data, multivariate probit and selectivity biased mixed-effects linear regression models were used. Results showed that increased daily milk output sold and number of commercial milk buyers resulted in increased probability of farm gate milk price variability by 3.8 and 12%, respectively. However, number of milking cows and trust levels on commercial milk buyer by seller decreased farm gate milk price heterogeneity by 89 and 87%, respectively. While selling through commercial, milk buyers had significant positive effect on farm gate milk price, majority of dairy farmer households were hesitant to engage with them since milk buyers valued supply security which came from trusted relationships and contracts. Therefore, critical strategies to improve farm gate milk prices are needed. These include strengthening of dairy farmer groups and partnership development, bolstering milk cooperative societies and increased financial investments in livestock milk markets by national and county governments.
 
Key words: Farm gate milk price, price heterogeneity, mixed-effects linear regression, dairy farmer households, Kericho County, Kenya.
 

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APA Ng’eno, E. K. (2017). Dairy farmer households’ farm gate milk price heterogeneity in Kericho County, Kenya. Journal of Development and Agricultural Economics, 9(7), 168-177.
Chicago Elijah K. Ng’eno,. "Dairy farmer households’ farm gate milk price heterogeneity in Kericho County, Kenya." Journal of Development and Agricultural Economics 9, no. 7 (2017): 168-177.
MLA Elijah K. Ng’eno,. "Dairy farmer households’ farm gate milk price heterogeneity in Kericho County, Kenya." Journal of Development and Agricultural Economics 9.7 (2017): 168-177.
   
DOI 10.5897/JDAE2017.0813
URL http://academicjournals.org/journal/JDAE/article-abstract/D2DF09E64784

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