Heliyon· 2026Q1
Effect of the formal milk market participation on the gross margin of dairy producers in Nyandarua County
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- 2026year
Short summary
Participating in formal milk markets increases dairy producers' gross margins by approximately 38% in Nyandarua County.
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Key points
- Formal milk market participation increases dairy producer gross margins by 38%.
- An endogenous switching regression model was used with data from 384 households in Nyandarua County.
- Risk-taking, proactiveness, autonomy, education, experience, land size, herd size, and milk yield influence the choice of formal market.
- The study recommends initiatives to increase formal market participation for improved farmer welfare.
AI-generated from the title and abstract; the full text is not read.
Abstract
Dairy production is a critical value chain for Kenya's rural employment and household income. However, the sector experiences low production and informal marketing. As a result, the government has established several interventions to support farmers in rural areas, including encouraging the formation of formal markets. However, it is not clear whether farmers have utilised and benefited from joining the formal markets (dairy cooperative and processors). This study, therefore, estimates the effect of the formal milk market on the gross margin of dairy producers using an endogenous switching regression model. The data was collected using a semi-structured questionnaire from 384 households drawn from Nyandarua County. The finding indicates that formal milk market participation increased the gross margin by about 38%. Moreover, the results revealed that risk-taking, proactiveness, autonomy, education, experience, land size, herd size, and milk yield significantly influence the choice of the formal milk market. This study recommends initiatives that increase formal market participation for enhanced welfare among dairy farmers.
The authors' abstract, as published at the source. Heliyon, 2026 · DOI ↗
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Field: General Agricultural and Biological Sciences
General Agricultural and Biological SciencesAgricultural and Biological Sciences