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DAIRY VALUE CHAIN NETWORKS AND PERFORMANCE OF DAIRY SACCOS IN KIAMBU COUNTY, KENYA
The objective of the study was to establish the influence of dairy value chain networks on performance of Dairy Saccos in Kiambu County. The project utilized a Census research design centering on all members of the population. The total population was 12 dairy Saccos in Kiambu County. The researcher obtained primary data using structured type of questionnaires. Quantitative technique was used in analyzing the data. For easier understanding, the researcher used averages, percentages, standard deviation and tables to depict descriptive statistics. The researcher also included quantitative data, analyzed based on regression analysis model. Findings from the regression analysis indicated the presence of significant positive linear relationship between value chain network and performance as presented using the correlation coefficient of 0.781. In addition, 61% of the variation in performance was due to value chain network. This also implied that 39% of the performance variation resulted from factors or errors overlooked during the study. This study also found that value chain network was incorporated in the running of the Saccos. The main way through which this incorporation was done was by support of feeding programs and the least way through which value chain incorporation was felt was through equipment financing to farmers; the major way through which this performance was demonstrated was through increased sales and the least way through which performance was felt was through the creation of high value dairy products. The study therefore recommends that various Saccos in the County should integrate dairy value chain network in the operationalizing of the Saccos in a manner that is sustainable and efficient to ensure that performance for the Saccos is enhanced and thus translated to profits. The study also recommends that the various Saccos should identify which value chain activities are the most effective in enhancing performance and invest heavily in them. The Saccos should also seek to understand those elements that are not effective and work towards addressing the challenges they pose in their performance. Finally, the study recommends sharing of information on the concept of value chain among the Saccos. Benchmarking leads to successful integration of the concept into their performance.
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