Smallholder dairying under transactions costs in East Africa
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Elsevier
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It is argued that dairying is vital to future viability of many small farms in East Africa and that high transactions costs for dairy production and marketing limit participation by asset- and information-poor smalholders. Case studies from Kenya and Ethiopia illustrate the role of dairy cooperatives in reducing transactions costs. Analysis of the determinants of producer prices received by a sample of dairy producers near Addis Ababa suggests that different levels of access to infrastructure, assets, and information explain why they contemporaneously accept widely different producer prices for fluid milk.
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dairy industry, small farms, costs, milk, producer prices