Dairy marketing hubs in East Africa

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The dairy sector plays a crucial role in Sub-Saharan Africa, with Kenya's industry serving as a model for neighboring countries. However, growth in this sector faces challenges such as limited access to inputs and milk markets. Collective milk marketing through co-operatives and farmer groups can provide economies of scale, better payment arrangements, and access to credit and services. Understanding farmer preferences for these collective marketing forms, along with barriers and opportunities for participation, is essential for identifying effective incentives. Based on a study of 300 dairy farmers in Nandi County, this analysis discusses policy implications and strategic interventions needed to enhance service delivery and market access for dairy farmers. Employing econometric tools, the research focuses on dairy hubs and collective farmer-owned milk chilling or bulking plants that also provide other dairy-related services. Findings indicate that prioritizing service provision, improving farmers' proximity to hub services, and enhancing education are critical strategic interventions to improve service delivery and market access for dairy farmers.