How commercialization rate impacts the profits of dairy farms in Kenya

University essay from SLU/Dept. of Economics

Abstract: This study investigates the relationship between farm profitability and commercialization rates among smallholder farmers in Kenya. Through an analysis of data from 453 farms, the research examines several factors, including milk production, household size, education level, and livestock ownership, that can affect commercialization rate and dairy profit. The study found that commercialization rate is associated with high dairy profit among smallholder dairy farmers in Kenya. The study has shown that the commercialization rate is affecting the profit of the farms. The findings shed light on the dynamics of smallholder farmers and offer valuable insights for enhancing dairy production and promoting economic development in Kenya. The study aligns with Sustainable Development Goals that prioritize poverty reduction, hunger eradication, and agricultural productivity. By understanding the factors influencing farm profitability and commercialization, policymakers and stakeholders can design targeted interventions to improve the livelihoods of smallholder farmers and contribute to the overall sustainable development of the country.

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