Milk Marketing Channel Choices for Enhanced Competitiveness in The Kenya Dairy Supply Chain: A multinomial Logit Approach
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This paper uses data from a survey of one hundred and eighty four dairy households in two divisional administrative zones in the Kenya highlands to empirically analyze the factors that influence the choice of a milk marketing channel. Multinomial logit econometric estimation results show that distance to milk collection centre, education level, membership of the household head to farmers' group/organization, the number of cows ownedn by the household, and the coefficiency of variation in prices significantly influenced the choice of a marketing channel. Private channel players are yet to focus on tapping the production potential of farmers with small herd sizes and encouraging group formation to exploit the social capital. The study demonstrates the need for the private sector to enhance milk collection at the unexplored areas to exploit the milk supply potentials. The implications for policy are provide.