Abstract the Kenyan economy , agriculture is the

Abstract

Supermarkets and
other busy markets are rapidly adopting the use of milk atms in the marketing
of milk. This is because prices are lucrative for suppliers of fresh milk. In
the past dairy sector have had some challenges but most of these challenges
have been solved mostly in production stage hence making this business a
succes.the challenge to farmers has been when it comes to marketing of their product.
Thanks to the changing technology farmers who do not have access to big
processing companies such as Brookside kcc fresher and others can now sell
their milk locally by using milk atms. In order to to address this knowledge
gap this study set out to examine the effects of milk atms on marketing of milk
by small holder farmers who do not have privilege to sell their milk to large processors.
To address this the present study analyzed data from a random sample of 56 milk
atm operators in kiambu county. Descriptive methods were used to characterize
small holders. the results show that marketing is dominated by male with a
percentage of 55.9% .average prices of milk in most areas range between 65-70
ksh.based on this findings the study recommends more funding to small holder
farmers to be able to buy such machines.

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Key words; small holder; milk atms; supermarkets;

 

1.0 INTRODUCTION

1.1 backgrounds

in the Kenyan
economy , agriculture is the leading contributor in the Kenyan income.
Agriculture consists of several sectors but mostly will be dealing with the
dairy sector. Milk is the most common product that most Kenyans consume each day.
Milk can be drunk fresh, used to make tea and it also has other products such
as cheese yourghourt and mala.this products are useful in the food industry. Processing
is dominated by large firms such as Brookside kcc fresher who process and pack fresh
milk.kenyan dairy industry has been a success due to extension services and
also Kenyan climate which is favorable for exotic breeds that have a better
production hence boosting production levels of milk. Milk being highly
perishable means that its marketing should be able to make it available for
people for consumption as soon as its production. Supermarkets provide both
processed milk and also others are also adopting selling fresh milk in the milk
atms.few years back such machines were not in the supermarkets but since the
rise of their popularity they have taken over in most supermarket and other
high end markets such as busy market areas. Supermarkets and these busy markets
provide reliable and fast growing market for milk and also attract better prices
in overall.

 

1.2 Statement of
the research problem

The method of marketing
of milk determines how much the seller charges for his product. Milk atms
attract better prices, offer good hygiene practices and also milk is available
almost any time a buyer requires. Besides that the owner doesn’t have to be
around the whole time in marketing giving him/her time to spend on other urgent
matters. Previous studies have dominated on large processors since they have
the huge chunk of the market and are able to deal with wide variety of farmers
and able to reach a large market. for small farmers who do not belong to any
cooperatives or who do not sell to this processors, the only option they have
is to hawk their milk or use milk atms in the marketing of their milk. rise of
milk atms is being achieved since there are numerous supermarkets in the
country and each is trying to step up the completion in the industry. The
literature points out how the atms have improved the marketing of milk. However
since this machines are new, there is limited information about them.
Understanding how this machines operate and the related cost is crucial point
in coming up with their contribution in the overall marketing. The best to my
knowledge is there is no such study that has been carried in milk atms effect
on marketing in Kiambu County despite this technology being on a rise. This
study aims to add to the existing information on milk marketing to help the
small holder farmers deal with the marketing issues they face.

 

 

1.3 Objective of
the study

The main objective
of this study was to find out the effects of milk atms in the marketing of milk
by small holder farmers in kiambu county, Kenya.

 

The specific
objectives were;

i.      
to
determine factors that influence use of milk atms in milk marketing

ii.    
to
characterize marketing of milk

Critics &
research gap

Productivity trends
and performance of dairy farming in Kenya

Kenyans dairy
industry is dynamic and plays an important role in economic and nutrition of
this country.kenya has one of the largest dairy industries in the sub-Saharan
africa.through the last livestock census conducted in 1966 the current official
cattle population statistics came from ministry of livestock and development
through its field reports compiled by extension officials the official
statistics place the no of milking cattle at 3.8 million(government of Kenya
2008)

a survey conducted
by small holder dairy project(sdp) asserts that approximately 6.7 million dairy
cattle in Kenya. The food agricultural organization (fao) on the other hand
estimates a figure of 5.5 million milking animals.

the industry has
grown tremendously since its liberalization in 1992.liberalization lead to a
rapid growth of informal milk trade that consist of small scale operators
dealing in marketing of raw milk. At the time there was an emergence of new institutional
arrangement in milk collection processing and marketing which included hawkers,
brokers and self help groups. The informal milk market controls an estimated
70% of the total milk marketed in Kenya(kdb2009;government of Kenya 2006).this
sector is important and is driven by among other factors the traditional
preferences for fresh milk and its relatively lower costs.

Raw milk often
offers prices which are high to producers and lower to consumers but with
several challenges relating to quality control and standards and the associated
health and safety concerns. The informal milk market has in the past faced
several challenges. This was because prior to policy change in 2004 informal
vendors including mobile milk traders and bar vendors and milk transporters
were not officially recognized under the old dairy policy.

As a result they
were frequently harassed as powerful marketing dairy players sought to protect
their interest and increase their market share

 

1.4 justification
of the study

This study provides
important information on the how milk marketing has been changed through use of
technology in Kiambu County. It also provides insight on the factors that
influence the use of milk atms. This information will be useful to stakeholders
in the dairy sector. This will help in expanding the dairy sector by attracting
more players in the marketing of milk. The study can also help the
organizations taking the project of farming specifically those that want to
venture into the dairy sector.

2.0 materials and method

 

2.1study area

Kiambu County was
chosen as the area of study because of its proximity to Nairobi city where the
market of milk is high and also the area consist mostly of dairy farmers. The
climate here has proven to be vital for both animal rearing and flourishing of
pasture for the animals. Also the area is home to giant milk processors such as
fresher and other dairy cooperatives. Since not all the small holder farmers
have the privilege to work with either this processors or cooperatives some
resort to marketing on their own. Thanks to technology they are able to change
from hawking milk to selling the milk in atms.

 

2.2 data

Primary data was collected buy use of a questionnaire. a random sample of
57 respondents was done mainly targeting those who operated or owned the milk
atms in kiambu county. The major

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.0 RESULTS &
DISCUSSION

Characterization of
small holder farmers with milk atms

Characterization of
small holder farmers helps in classifying farm household into similar or
different groups for which targeted policy intervention can be applied.

Characterization of
the farmers and their households.

This can be
represented by tables;

 

gender of respondent

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

male

33

55.9

57.9

57.9

female

24

40.7

42.1

100.0

Total

57

96.6

100.0

 

Missing

System

2

3.4

 

 

Total

59

100.0

 

 

 

 

More than half of
respondents were male 55.9 %.this implies that marketing is male dominated activity.
This suggests that more male are aware of opportunities in marketing as
compared to female.

 

 

 

 

average price of milk

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

60-65

15

25.4

26.3

26.3

65-70

33

55.9

57.9

84.2

above 70

9

15.3

15.8

100.0

Total

57

96.6

100.0

 

Missing

System

2

3.4

 

 

Total

59

100.0

 

 

 

 

The average range
of milk price was between 65-70 ksh .although few areas were selling above 70
ksh and this can be attributed to factors such as transport costs which are
likely to affect the price of milk.

majority of the
farmers sold between 20-30 liters of milk per day.atms are not targeted at a
large market that why they are numerous in certain areas where the population
is high. However it’s noted that all the milk was sold in almost all areas that
the machines operated. So the farmers are said to have satisfied the milk
demand.

 

do you keep records of your business

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

34

57.6

59.6

59.6

no

12

20.3

21.1

80.7

sometimes

11

18.6

19.3

100.0

Total

57

96.6

100.0

 

Missing

System

2

3.4

 

 

Total

59

100.0

 

 

 

 

Record keeping is
essential in all businesses because you can tell whether the business is profitable.
The study shows that more than half of the businesses keep records. Records are
also important in securing loans. Those keeping records were 57.6%

CONCLUSIONS &
RECOMMENDATIONS

The findings show
that here has been an increase in milk production however not all the milk is sold.
Some of the milk goes bad since farmers are not able to access the market large
portion of milk is consumed in urban centers as compared to production zones.
to tackle this marketing problem use of milk atms is being put into use.

in the finds ,also
the government plays an important role in regulation of the sector. Licensing,
health requirements and also other rules such as pasteurization of milk have
helped in raising hygiene standards in this industry. This has made it safe for
buyers.

Global milk demand
is growing, mostly in developing countries. Once this increased volume of milk
is being produced by small-scale dairy farmers, this presents a unique
opportunity for building up a sustainable dairy chain that sources milk from
smallholder dairy farmers to meet not only the demands of local consumers but
also those of the world market. While capitalizing on this opportunity could
generate significant wealth in rural areas and provide benefits to all
stakeholders involved in the dairy value chain, it calls for a sound dairy
development strategy.

To be successful,
any dairy development strategy should be based on the principle of ‘creating value’
in every segment of the dairy chain. This means that every player in the chain
(farmer, farm input supplier, milk traders, processors, retailers, etc.) makes
a profit, i.e. the returns are higher than the costs.

  Stakeholder consultation: a critical issue
here is to agree on goals for each segment of the dairy chain that ‘fit
together’ and are mutually supportive. Once the strategic goals (especially of
farmers and processors) are in line with each other, it would be desirable for
local governments, NGOs and other potential partners to become involved and
their capacities and roles in supporting the development process be considered.

    Risk management: given the increasing
volatility of milk and feed prices, there is a pressing need to incorporate
risk management systems into dairy development strategies. This is especially
important for the dairy farmers once they move from small-scale/ low-yield
operations to larger farms with more intensive production practices.

    Monitoring, evaluation and continuous
strategy improvement: the world is rapidly evolving, and agricultural
development is very dynamic with regard to farm structure, input prices, prices
for milk and dairy products, consumer perceptions, etc. It is therefore not
sufficient to start a dairy development programmers with a sound strategy: it
is also necessary to constantly re-assess the chosen strategy against changing
external factors.

There is a need for
regular evaluations of each part of the dairy chain and for comparison with
counterparts in other dairy regions. This calls for professionals with
backgrounds in dairy supply chain management and dairy farm economics. The
knowledge created through such comparative studies should be translated into
continuous adaptation of the dairy chain to changing circumstances so as to
ensure the future prosperity of all the actors involved in the dairy sector.

REFERENCES