Effect of milk price on dairy consumption in low income households in Nairobi

World Development, 2010

Marketing, transporting, processing, and consuming dairy products contribute significantly to the livelihoods of many poor Kenyan households. This study analyzes the impact of recent research supporting policy changes to liberalize informal milk markets. The study found that behavioral changes in dairy sector participants arising from the research evidence-supported policy and regulatory changes led to an average 9% reduction in milk-marketing margins, and a significant increase in the number of licensed small-scale milk vendors. High welfare benefits arising from the policy change, with a net present value of US$230 million, are captured by consumers, producers, and milk vendors.

Agricultural and Resource Economics Review

This paper investigates the impacts of alternative federal dairy policies on the U.S. dairy sector. In addition to the current dairy price support program, five alternatives are investigated: (1) immediate deregulation, (2) gradual deregulation, (3) target price-deficiency payment program without supply control, (4) target price-deficiency payment program with supply control, and (5) mandatory supply control. An econometric model of the national dairy industry is used to simulate quarterly equilibrium price and quantity values at the farm and wholesale levels for each policy over the period 1980–90. Consumers are better off under both immediate and gradual deregulation, as well as the target price-deficiency payment scenarios because prices are lower, enabling them to consume more dairy products. Farmers, as a group, are better off under the two target price-deficiency payment program and supply control scenarios, where milk prices and producer surplus are highest.

2012

This paper reviews trends in global production and consumption of dairy products as well as the drivers behind increasing production and consumption. The past decades have seen rapid growth in consumption of dairy products in several parts of ' but not all of ' the developing world, driven by economic growth and rising income levels. However, large differences in levels of per caput consumption among developing country regions and countries persist. Increasing consumption in developing countries has been accompanied by a major expansion of production in several developing countries, significantly outpacing production growth in the developed country group. In addition to growing demand, production growth has been driven by technological change in the sector, which has permitted major increases in productivity and the emergence of large-scale commercial dairy farms. However, small-scale dairy producers in several developing countries have remained at the margin of these develo...

Journal of Science and Technology (Ghana), 2009

The main purpose of the study was to examine the level of household expenditure on dairy products and to identify the principal factors that influence the level of consumption expenditure on dairy products across households in Accra and Kumasi. Structured questionnaire was used to elicit primary information from a total of 303 households through a multi-stage sampling approach. The double logarithmic multiple regression model was found to be the most suitable functional form and was thus used to examine the major determinants of household dairy consumption expenditure patterns. The principal determinants of aggregate dairy consumption expenditure were identified as income level of household head, distance from home to purchase point and the level of urbanization of consumer's home location. The study revealed that the elasticity of expenditure on dairy products (i.e. evaporated milk and raw fresh milk) with respect to own price is unity. Elasticity of expenditure with respect to income level and prices of substitutes was found to be less than unity. It became evident from the study that raw fresh milk is an inferior commodity in Ghana. However, evaporated milk was found to be a normal commodity.

Journal of dairy science, 2011

Low-fat dairy products are key components of a healthy diet for all Americans. As the USDA increases its focus on nutrition and healthy eating, it is important to understand the underlying demands for dairy products, both the healthy and the less healthy ones. The consumption of fluid milk products has decreased over the last decade, whereas milk used for manufactured dairy products such as cheese, ice cream, yogurt, and butter, and for use as an ingredient in other food products, has risen. The objective of this study is to determine the effects of changes in demographic variables, retail prices, and total dairy expenditure on at-home consumption of dairy products, using purchase data from Nielsen 2007 Homescan (ACNielsen, New York, NY) data. To derive the demand elasticities for 16 products, a censored Almost Ideal Demand System model is used. Results reveal that demographic variables do have effects on the purchase of the 16 products, and own-price elasticities are 1 or greater f...

Asian Journal of Research in Animal and Veterinary Sciences, 2019

Ethiopia has a large potential for dairy development because of its large livestock population and favorable climate for improved high yielding breeds. But milk productivity is still low as lower productive indigenous dairy animals characterize the dairy sub-sector in the country. Aim: Hence, the study intends to assess the major dairy production and marketing constraints in the urban and peri-urban settings of Southern zone of Tigray. Study Design: Using a multi-stage sampling procedure, cross-sectional data were collected from 184 randomly selected dairy producers. Place and Duration of the Study: The study was conducted in the Southern Zone of Tigray regional state, Ethiopia, and it was for one-year time duration. Methodology: The study employed both primary and secondary data where primary data were collected through pre-tested semi-structured questionnaire instrument. Descriptive analysis particularly, Likert scale was used to analyze data. Results: Results show that farmers ranked shortage of quality animal feed, frequent drought, lower productivity of local dairy breeds and shortage of land for dairying as first priority dairy production constraints (scale lies between 1.668 to 1.75) in the study areas. Similarly, farmers perceived that poor institutional support, high price uncertainty of dairy products, lack of adequate and timely market information, high price uncertainty, domination of informal markets, lack of milk cooling and processing machines, lack of adequate dairy cooperatives and high seasonality in production and the demand for milk as the first key dairy marketing constraints in the study areas. Conclusion: Dairy policies and strategies in the study areas should primarily focus on improving the institutional arrangements, raise the awareness on adoption of milk enhancing improved dairy technologies and dairy intensification in small landholding to improve the dairy productivity in the areas. Moreover, strengthening the existing and establishing newly emerging institutionalized markets such as dairy cooperatives and milk processing plants encourage urban and peri-urban dairy commercialization, which could also contribute to the household food security and income diversification.

Evidences on potential of milk consumption in preventing malnourish-ment vis-à-vis market-oriented/intensifying smallholder dairy-producing areas are scant. Hence, this study explored the consumption habits of fresh bovine milk in the dairy-producing households. Data were collected from a survey of 200 dairy households and key informant interviews. The results revealed that the amount of self-consumed fresh milk per farm and day by producer families varied from 0.5 to 5 liters per day. The majority consumed and traded milk at the same time. The practice of treating milk before consumption differed significantly across production systems. Eighty four percent of the dairy producers boiled milk prior to consumption, and 8.5 % of the respondents did not consume fresh but rather fermented/sour milk (ergo) as most of them had symptoms of lactose intolerance. Based on United States Department of Agriculture recommendations, the daily requirement is 10-15 cups if on average five of the family members are drinking milk. Hence, there was a lack of 1.40-2.85 liters of milk, which is insufficient to satisfy the nutrition requirement from dairy foods. However, there are ample experiences of dairy farming, local availability, milk production, and culture of milk consumption. There is scope to improve nutrition through consuming sufficient quantities of milk by the milk-producing households and balancing the staple foods (teff and wheat) in the area. Improving milk productivity will increase the levels of milk consumption , which in turn would have great potential as a cost-effective and sustainable household food production strategy for malnourished children.