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Economic performance of exotic dairy cattle under smallholder conditions in the marginal zones of Kenya using three analytical approaches

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  • Kavoi, Mutuku Muendo
  • Hoag, Dana L.
  • Pritchett, James G.
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    Abstract

    Smallholder exotic dairy cattle have been adopted in the dry marginal zones of Kenya from the high potential areas over the last two decades contrary to the opinion of experts. The objective of this study therefore was to evaluate the economic performance of this dairy establishment in the marginal zones. Three approaches were used for the evaluation: the stochastic cost frontier to determine inefficiencies and the causative institutional and socio-economic factors; cost-factor demand systems; and the supply response analyses to determine the elasticity estimates of policy variables. The results from these approaches are supplementary and seem to support the need for government interventions in institutional and socio-economic factors that have a high public good component in order to expand dairy establishment in the marginal zones.

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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 49 (2010)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:agreko:61997

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    Web page: http://www.aeasa.org.za/
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    Keywords: Marginal zones; stochastic frontier; systems analysis; institutional and socio-economic factors; Institutional and Behavioral Economics;

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    1. Umar Farooq & Trevor Young & Noel Russell & Muhammad Iqbal, 2001. "The supply response of basmati rice growers in Punjab, Pakistan: price and non-price determinants," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 227-237.
    2. Charles F. Nicholson & Philip K. Thornton & Rahab W. Muinga, 2004. "Household-level Impacts of Dairy Cow Ownership in Coastal Kenya," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 175-195.
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