This article examines how the raw milk marketing system in Kenya has evolved after the dairy sector liberalization in 1992 by using panel data of 874 rural households. From the 1998 to 2004, the proportion of rural households who sold milk increased from 37 to 51 percent. During the same period, the number of households who sold milk to traders tripled, while it has drastically declined for dairy cooperatives and a parastatal processing company. The price analysis indicates that the excess supply in localities does not affect the farm gate price received by milk producer in 1998, but not in 2004. This is because trading a perishable commodity, such as milk, over a long distance requires reliable market channels and it takes some time for such supporting market institutions to be established.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.