The Effect of Value Addition Strategies on the Performance of Smallholder Dairy Farmers in Kiambu County, Kenya

Abstract

In spite of Kiambu County having good agro-ecological settings supportive of milk production and its strategic spread near vast urban markets, a substantial percentage of small-scale dairy holders have low profit margins, largely attributable to inefficient utilization of post-production technologies. The purpose of this study was therefore to examine the effect of value addition strategies on the performance of smallholder dairy producers in Kenya's Kiambu County. Specifically, the study examined the effects of milk processing and product diversification, milk quality improvement and standards compliance, branding and market linkages, and technology adoption on the performance of dairy producers. The study also establish the moderating influence of farmer capacity on the relationship between value addition strategies and the performance of smallholder dairy farmers. The study employed a descriptive survey research design. Out of the population of 162 registered small-scale dairy holders in the county of Kiambu undertaking value addition, a sample of 115 were randomly selected through stratified sampling methods, out of which 112 participated. Data was collected using a questionnaire. Descriptive and statistical methods of inference were undertaken during the analysis process of data. The study found that the value addition strategies significantly improved farm performance in Kiambu County. Technology adoption was the strongest predictor. Farmer capacity building moderated the relationship between value addition and farm performance. The research concluded that value addition improves the competitiveness of small-scale dairy farmers, and farmer capacity helps to enhance these efforts. The study recommends the need to offer training for farmers, improve access to affordable technologies, and link them to reliable markets.