Characterization Of Trends In Processed Milk Consumption And Marketing In Retail Outlets In Nairobi
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Agriculture is the backbone of Kenya’s economy, contributing over 30% of the Gross Domestic Product. The majority of the population relies on agriculture for employment and general livelihood. Kenya produced 3.8 billion liters of milk in 2007 (MoLD, 2008). Out of this, it is estimated that 36% isconsumed on the farm and 64% offered on market to individuals and institutions. Milk consumption in thecountry is projected at 4.1 billion liters in 2014 (KDB, 2009). There exist two types of milk traders in this industry: formal (processors) and informal (raw milk traders), (Ngigi, 2000). Processors existing in the market include New KCC (national processor), Brookside, Fresha, Sameer and Buzeki Dairy who produce KCC maziwa origi& Goldcrown, Ilara, Tuzo & Brookside, Fresha, Daima and Molo milk variants respectively. The country’s capital: Nairobi is the largest consumer of processed.

This study has characterized milk consumption and marketing in small scale retail outlets in Nairobiwhich is critical in understanding the constraints and opportunities that exist within consumption and marketing of processed milk in Nairobi. It not only allows for better targeting of processed milk markets research and development but also that of other dairy and livestock products as well. Therefore, information obtained can be valuable for detailed analysis of the constraints and opportunities found in marketing and consumption of processed milk and to design policies and strategies to support marketing of processed milk and its subsequent consumption in Nairobi and other rural and urban regions in the country.

Primary data was collected form household samples and small scale retailers from low, medium and high income areas between January and February 2014 and analyzed using SPSS and Ms excel. Descriptive statistics was used to show the trends and compare the means and cross tabulation was use to show milk variant consumption and marketing in respect to the areas.

The results showed that a milk variant was consumed more in regions closer to their areas of production i.e. a milk variant produced close to a factory will be consumed more in closer regions. Results also indicated that there was low consumption of raw milk in low and high income areas but high consumption of raw milk in low income regions and thus more raw milk was marketed in low income areas than in urban areas. Factors such as gender of the household head, marital status, size of the household, television set ownership, membership to a group, access to credit and internet services and education were analyzed a contributing factors to consumption by household while gender of retail head, access to internet, savings and credit facilities, education level of retail head and gender was analyzed against the retail sample.