A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain

Wadeya Lennox Ongwech; Otiende Millicent Adhiambo; Christopher Obel-Gor

doi:doi:10.11648/j.ijae.20220701.14

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A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain

Wadeya Lennox Ongwech, Otiende Millicent Adhiambo, Christopher Obel-Gor

Published in International Journal of Agricultural Economics (Volume 7, Issue 1)

Received: 11 September 2021 Accepted: 8 October 2021 Published: 9 February 2022

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Abstract

Selection of appropriate markets is a major challenge facing smallholder dairy farmers in Kenya. This study therefore sought to understand factors influencing milk marketing channel choices among smallholder dairy farmers in Kinangop Sub County. Data from a sample of 230 smallholder dairy farmers was collected using structured questionnaires and analysed using both descriptive and inferential statistical methods. The study identified three marketing channels namely; milk processors (46.09) %, milk bars (32.61) % and direct sales (21.3) %. Similarly, years of schooling (p≤0.1), on-farm income (p≤0.1) and milk output (p≤0.01) were statistically significantly different across the three marketing channels. The average farm gate price was kes 32.6 per litre. From the multinomial logistic regression, marital status, extension access, association membership, mode of payment and transport ownership significantly influenced marketing channels. Further results showed that majority (53.48) % of farmers never had access to market information. The study therefore recommended policies geared towards enhancing more years of formal education and market intelligence so as to facilitate selection of appropriate marketing channels, more training on dairy husbandry practices with the aim of increasing milk output, facilitate access to transport facilities so as to enhance milk delivery to milk collection centres and a review of payment arrangements between milk processors and farmers so as to avoid the problem of delayed payments to farmers.

Published in	International Journal of Agricultural Economics (Volume 7, Issue 1)
DOI	10.11648/j.ijae.20220701.14
Page(s)	20-28
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Kinangop Sub County, Milk Marketing Channel, Multinomial Logit Model, Smallholder Dairy Farmers

References

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APA Style

Wadeya Lennox Ongwech, Otiende Millicent Adhiambo, Christopher Obel-Gor. (2022). A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. International Journal of Agricultural Economics, 7(1), 20-28. https://doi.org/10.11648/j.ijae.20220701.14

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ACS Style

Wadeya Lennox Ongwech; Otiende Millicent Adhiambo; Christopher Obel-Gor. A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. Int. J. Agric. Econ. 2022, 7(1), 20-28. doi: 10.11648/j.ijae.20220701.14

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AMA Style

Wadeya Lennox Ongwech, Otiende Millicent Adhiambo, Christopher Obel-Gor. A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. Int J Agric Econ. 2022;7(1):20-28. doi: 10.11648/j.ijae.20220701.14

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@article{10.11648/j.ijae.20220701.14,
  author = {Wadeya Lennox Ongwech and Otiende Millicent Adhiambo and Christopher Obel-Gor},
  title = {A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {1},
  pages = {20-28},
  doi = {10.11648/j.ijae.20220701.14},
  url = {https://doi.org/10.11648/j.ijae.20220701.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220701.14},
  abstract = {Selection of appropriate markets is a major challenge facing smallholder dairy farmers in Kenya. This study therefore sought to understand factors influencing milk marketing channel choices among smallholder dairy farmers in Kinangop Sub County. Data from a sample of 230 smallholder dairy farmers was collected using structured questionnaires and analysed using both descriptive and inferential statistical methods. The study identified three marketing channels namely; milk processors (46.09) %, milk bars (32.61) % and direct sales (21.3) %. Similarly, years of schooling (p≤0.1), on-farm income (p≤0.1) and milk output (p≤0.01) were statistically significantly different across the three marketing channels. The average farm gate price was kes 32.6 per litre. From the multinomial logistic regression, marital status, extension access, association membership, mode of payment and transport ownership significantly influenced marketing channels. Further results showed that majority (53.48) % of farmers never had access to market information. The study therefore recommended policies geared towards enhancing more years of formal education and market intelligence so as to facilitate selection of appropriate marketing channels, more training on dairy husbandry practices with the aim of increasing milk output, facilitate access to transport facilities so as to enhance milk delivery to milk collection centres and a review of payment arrangements between milk processors and farmers so as to avoid the problem of delayed payments to farmers.},
 year = {2022}
}

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TY  - JOUR
T1  - A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain
AU  - Wadeya Lennox Ongwech
AU  - Otiende Millicent Adhiambo
AU  - Christopher Obel-Gor
Y1  - 2022/02/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220701.14
DO  - 10.11648/j.ijae.20220701.14
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 20
EP  - 28
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220701.14
AB  - Selection of appropriate markets is a major challenge facing smallholder dairy farmers in Kenya. This study therefore sought to understand factors influencing milk marketing channel choices among smallholder dairy farmers in Kinangop Sub County. Data from a sample of 230 smallholder dairy farmers was collected using structured questionnaires and analysed using both descriptive and inferential statistical methods. The study identified three marketing channels namely; milk processors (46.09) %, milk bars (32.61) % and direct sales (21.3) %. Similarly, years of schooling (p≤0.1), on-farm income (p≤0.1) and milk output (p≤0.01) were statistically significantly different across the three marketing channels. The average farm gate price was kes 32.6 per litre. From the multinomial logistic regression, marital status, extension access, association membership, mode of payment and transport ownership significantly influenced marketing channels. Further results showed that majority (53.48) % of farmers never had access to market information. The study therefore recommended policies geared towards enhancing more years of formal education and market intelligence so as to facilitate selection of appropriate marketing channels, more training on dairy husbandry practices with the aim of increasing milk output, facilitate access to transport facilities so as to enhance milk delivery to milk collection centres and a review of payment arrangements between milk processors and farmers so as to avoid the problem of delayed payments to farmers.
VL  - 7
IS  - 1
ER  -

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Author Information

Wadeya Lennox Ongwech

Department of Agricultural Biosystems, Economics and Horticulture, University of Kabianga, Kericho, Kenya
Otiende Millicent Adhiambo

Department of Agricultural Biosystems, Economics and Horticulture, University of Kabianga, Kericho, Kenya
Christopher Obel-Gor

Department of Agricultural Economics and Agribusiness Management, Jaramogi Oginga Odinga University of Science and Technology, Bondo, Kenya

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Wadeya Lennox Ongwech, Otiende Millicent Adhiambo, Christopher Obel-Gor. (2022). A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. International Journal of Agricultural Economics, 7(1), 20-28. https://doi.org/10.11648/j.ijae.20220701.14

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ACS Style

Wadeya Lennox Ongwech; Otiende Millicent Adhiambo; Christopher Obel-Gor. A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. Int. J. Agric. Econ. 2022, 7(1), 20-28. doi: 10.11648/j.ijae.20220701.14

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AMA Style

Wadeya Lennox Ongwech, Otiende Millicent Adhiambo, Christopher Obel-Gor. A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain. Int J Agric Econ. 2022;7(1):20-28. doi: 10.11648/j.ijae.20220701.14

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@article{10.11648/j.ijae.20220701.14,
  author = {Wadeya Lennox Ongwech and Otiende Millicent Adhiambo and Christopher Obel-Gor},
  title = {A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {1},
  pages = {20-28},
  doi = {10.11648/j.ijae.20220701.14},
  url = {https://doi.org/10.11648/j.ijae.20220701.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220701.14},
  abstract = {Selection of appropriate markets is a major challenge facing smallholder dairy farmers in Kenya. This study therefore sought to understand factors influencing milk marketing channel choices among smallholder dairy farmers in Kinangop Sub County. Data from a sample of 230 smallholder dairy farmers was collected using structured questionnaires and analysed using both descriptive and inferential statistical methods. The study identified three marketing channels namely; milk processors (46.09) %, milk bars (32.61) % and direct sales (21.3) %. Similarly, years of schooling (p≤0.1), on-farm income (p≤0.1) and milk output (p≤0.01) were statistically significantly different across the three marketing channels. The average farm gate price was kes 32.6 per litre. From the multinomial logistic regression, marital status, extension access, association membership, mode of payment and transport ownership significantly influenced marketing channels. Further results showed that majority (53.48) % of farmers never had access to market information. The study therefore recommended policies geared towards enhancing more years of formal education and market intelligence so as to facilitate selection of appropriate marketing channels, more training on dairy husbandry practices with the aim of increasing milk output, facilitate access to transport facilities so as to enhance milk delivery to milk collection centres and a review of payment arrangements between milk processors and farmers so as to avoid the problem of delayed payments to farmers.},
 year = {2022}
}

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TY  - JOUR
T1  - A Multinomial Logit Approach to Smallholder Milk Marketing Channels for Improved Competitiveness in the Kenyan Dairy Value Chain
AU  - Wadeya Lennox Ongwech
AU  - Otiende Millicent Adhiambo
AU  - Christopher Obel-Gor
Y1  - 2022/02/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220701.14
DO  - 10.11648/j.ijae.20220701.14
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 20
EP  - 28
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220701.14
AB  - Selection of appropriate markets is a major challenge facing smallholder dairy farmers in Kenya. This study therefore sought to understand factors influencing milk marketing channel choices among smallholder dairy farmers in Kinangop Sub County. Data from a sample of 230 smallholder dairy farmers was collected using structured questionnaires and analysed using both descriptive and inferential statistical methods. The study identified three marketing channels namely; milk processors (46.09) %, milk bars (32.61) % and direct sales (21.3) %. Similarly, years of schooling (p≤0.1), on-farm income (p≤0.1) and milk output (p≤0.01) were statistically significantly different across the three marketing channels. The average farm gate price was kes 32.6 per litre. From the multinomial logistic regression, marital status, extension access, association membership, mode of payment and transport ownership significantly influenced marketing channels. Further results showed that majority (53.48) % of farmers never had access to market information. The study therefore recommended policies geared towards enhancing more years of formal education and market intelligence so as to facilitate selection of appropriate marketing channels, more training on dairy husbandry practices with the aim of increasing milk output, facilitate access to transport facilities so as to enhance milk delivery to milk collection centres and a review of payment arrangements between milk processors and farmers so as to avoid the problem of delayed payments to farmers.
VL  - 7
IS  - 1
ER  -

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