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Kenyan Dairy Policy Change: Influence Pathways and Economic Impacts

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  • Kaitibie, Simeon
  • Omore, Amos
  • Rich, Karl
  • Kristjanson, Patti

Abstract

Summary Marketing, transporting, processing, and consuming dairy products contribute significantly to the livelihoods of many poor Kenyan households. This study analyzes the impact of recent research supporting policy changes to liberalize informal milk markets. The study found that behavioral changes in dairy sector participants arising from the research evidence-supported policy and regulatory changes led to an average 9% reduction in milk-marketing margins, and a significant increase in the number of licensed small-scale milk vendors. High welfare benefits arising from the policy change, with a net present value of US$230 million, are captured by consumers, producers, and milk vendors.

Suggested Citation

  • Kaitibie, Simeon & Omore, Amos & Rich, Karl & Kristjanson, Patti, 2010. "Kenyan Dairy Policy Change: Influence Pathways and Economic Impacts," World Development, Elsevier, vol. 38(10), pages 1494-1505, October.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1494-1505
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    References listed on IDEAS

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    2. Shiferaw, K. & Gebremedhin, B. & Tegegne, A. & Hoekstra, D., 2018. "Analysis of milk production, butter marketing and household use of inputs in rural Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277104, International Association of Agricultural Economists.
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    6. Johnson, Nancy L. & Mayne, John & Grace, Delia & Wyatt, Amanda, 2015. "How will training traders contribute to improved food safety in informal markets for meat and milk? A theory of change analysis:," IFPRI discussion papers 1451, International Food Policy Research Institute (IFPRI).
    7. Staal, Steven J., 2015. "Livestock Marketing and Supply Chain Management of Livestock Products," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(1), pages 1-22.
    8. Dave Nyongesa & Martin Kiogora Mwirigi & David Yongo & Stella Makokha, 2016. "Gender-concerns: do they matter in smallholder dairy groups in Kenya?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 12(1), pages 1-17.
    9. David L. Ortega & Vincenzina Caputo & Mywish Maredia, 2023. "Effectiveness of nutritional information in increasing demand for enriched yoghurt among poor households in Kenya: Implications for agribusiness marketing strategies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 285-290, January.
    10. Enock Warinda & Dickson M Nyariki & Stephen Wambua & Reuben M Muasya & Munir A Hanjra, 2020. "Sustainable development in East Africa: impact evaluation of regional agricultural development projects in Burundi, Kenya, Rwanda, Tanzania, and Uganda," Natural Resources Forum, Blackwell Publishing, vol. 44(1), pages 3-39, February.
    11. Ayele Gelan & Amos Omore, 2014. "Beyond Tariffs: The Role of Non-Tariff Barriers in Dairy Trade in the East African Community Free Trade Area," Development Policy Review, Overseas Development Institute, vol. 32(5), pages 523-543, September.
    12. Muunda, Emmanuel & Mtimet, Nadhem & Schneider, Franziska & Wanyoike, Francis & Dominguez-Salas, Paula & Alonso, Silvia, 2021. "Could the new dairy policy affect milk allocation to infants in Kenya? A best-worst scaling approach," Food Policy, Elsevier, vol. 101(C).
    13. Dizyee, Kanar & Baker, Derek & Rich, Karl M., 2017. "A quantitative value chain analysis of policy options for the beef sector in Botswana," Agricultural Systems, Elsevier, vol. 156(C), pages 13-24.
    14. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    15. Amolo Elvis Juma Amolo, PhD & Charles Mallans Rambo, PhD, 2021. "Stakeholders’ Empowerment and Implementation of Dairy Farming Projects in Muhoroni Sub-County, Kisumu County, Kenya," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(8), pages 141-146, August.
    16. Revoredo-Giha, Cesar & Toma, Luiza, 2016. "Assessing the development strategies for the Malawian dairy sector: A spatial multimarket model," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246958, African Association of Agricultural Economists (AAAE).
    17. Charity Kinyua & Vusilizwe Thebe, 2023. "Drivers of Scale and Sustainability of Food Safety Interventions in Informal Markets: Lessons from the Tanzanian Dairy Sector," Sustainability, MDPI, vol. 15(17), pages 1-17, August.

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