Assessment of demand for dairy cow feeds and market participation decision of small-scale farmers in Kiambu County

Abstract

In recent times, dairy farming has become a major economic activity for many smallholder farmers in Kiambu County. This has been encouraged by the rising demand for milk and dairy products by the growing population. Following this, there has been an increased demand for dairy cow feeds by the small-scale farmers and therefore the need to do this study. The general objective of the study was to contribute to improved livelihood by determining level of demand of dairy cows feed and promote farmers‟ market participation decision making. This study utilized both secondary and primary data sources with the questionnaire being adopted as the major data collection tool. A Multi-stage sampling method was used to come up with a sample of 150 dairy farmers that were interviewed. To analyze the data, the study utilized descriptive statistics to determine small scale farmers‟ characteristics. Almost Ideal Demand System (AIDS) model was applied to assess demand for dairy cow feeds. The double hurdle model was used to analyze the decision to participate in the market and extent of participation. The results from the study indicated that 90% of the farmers participated in markets for cows‟ feeds in the study area. On the demand for cows feeds, the Hicksian result indicated that value of compensated own price elasticity for by-products was found to be the lowest (-0.31), followed by that for minerals (-0.28), then concentrates (-0.19) and highest was fodder at (-0.16). The Uncompensated/ Marshallian own price elasticities in absolute terms was found to be lowest for minerals (-0.36) followed by by-products (-0.37) then Fodders (-0.46), and finally concentrates (-0.69). The calculated expenditure elasticities for all the cow feeds were found to be positive and less than one, indicating that they can be considered normal/ necessary goods. Gender, education and age were found to influence the decision to participate in markets for cows‟ feeds. On the other hand age, extension service, farm size, on-farm incomes from milk sales and crops had an influence on the extent of farmer‟s participation in markets. Information generated will be utilized by small scale farmers, dairy co-operatives and all stakeholders. This study will be useful to the target population to understand the various strategies of feed conservation aiming at sustaining stable milk production. Policy implications include proper planning of feed supplies, creation of opportunities and reduction in cow feeds prices. Policy makers to identify points of interventions and as such design effective and efficient mechanisms on promotion of irrigation schemes and water harvesting technologies to create a seamless availability of cow feeds.