ISSN 2360-798X
Abstract: Kenya's dairy industry is the largest and one of the most successful in Africa. Smallholder dairy farmers dominate the sector. However, the farmers predominantly practice subsistent farming and are yet to realize benefits from formal market system participation. Therefore, there is a critical need to transform the smallholder dairy to profitable enterprise through commercialisation. The primary goal of this study was to investigate what makes collection work in the dairy sector. It specifically examined the determinants of the dairy collective action choice. It also analysed the determinants of dairy collective action performance. We conducted the study in the dairy-dominated counties of Nyandarua and Nakuru in Kenya. The study used a multistage sampling technique to select a random sample of 380 dairy farmers. The study used a multistage sampling technique to select a random sample of 380 dairy farmers. The study used Propensity Score Matching (PSM) method to analyse the effect of a collective action decision by the farmers. The results revealed heterogeneity of smallholder dairy farmers groups. The results also showed that group membership led to a substantial increase in milk sales. The study concluded that collective action helped to minimize the challenges faced by smallholder dairy farmers in accessing the input and output markets.
Keywords: Smallholder Dairy, Collective Action, Propensity Score Matching model, Kenya