Is the Traditional Role of Milk Cooperatives Still Relevant? Evidence from Western Kenya
Simon P. O. Wanjala *
Department of Agribusiness Management and Trade, Kenyatta University, P.O.Box 43844 – 00100 Nairobi, Kenya and Kenya Agricultural and Livestock Research Organization, P.O.Box 57811- 00200, Nairobi, Kenya.
K. Bernard Njehia
Department of Agribusiness Management and Trade, Kenyatta University, P.O.Box 43844 – 00100 Nairobi, Kenya.
Festus M. Murithi
Kenya Agricultural and Livestock Research Organization, P.O.Box 57811- 00200, Nairobi, Kenya.
*Author to whom correspondence should be addressed.
Abstract
This study investigated the extent of performance of modern functions among milk cooperatives in Western Kenya. Data was collected from all the ten active cooperatives, Kenya Dairy Board and the livestock department through interviews using checklists. The study found that milk cooperatives in the region have not taken off on a business path due to inefficiencies in management, technological and entrepreneurial skills. Assessment of extent of performance of modern roles showed that they were still far from embracing vertical linkages. Owing to a large number of inactive members (91%), idle capacity (91%), inadequate technical facilities and non professional managers, it is recommended that re structuring into new cooperative models should be done to enable them remain relevant in competitive value chains.
Keywords: Milk cooperatives, traditional role, modern functions, business entities, competitive value chains, new cooperative models.