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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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    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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    7. 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.
    8. 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).
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    11. 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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    13. 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).
    14. 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.
    15. 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.
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