Analysis of Determinants of Market Channel Choice among Smallholder Dairy Farmers in Lower Central Kenya

Abstract

This study sought to analyse determinants of market channel among smallholder dairy farmers in Lower Central Kenya. Multistage sampling technique was used and data was collected from 288 small holder dairy farmers Kiambu County.Multinomial logit regression model (MNL) was used to analyse factors influencing the choice of dairy market outlet by the small holder dairy farmer.  Processing and analysis of the survey data was carried out using SPSS version 20 and STATA version 12. Level of education, milk output, access to information and transaction costs influenced the choice of marketing channel. There was a positive relationship between choice of farm gate over cooperative societies and farmers training. It is recommended that programmes relating to information on milk marketing be made accessible to farmers. There is need to profile farmers on the basis of production,spatial location and education level and encourage them to use specific marketing channel.