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DETERMINANTS OF ADOPTION OF VALUE ADDITION TECHNOLOGY AMONG DAIRY ENTERPRISES IN KEIYO SOUTH SUB COUNTY IN KENYA

 

 

Norah Ndege

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Dr. Allan Kihara

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

 

 

 

CITATION: Ndege, N. & Kihara, A. (2018). Determinants Of Adoption Of Value Addition Technology Among Dairy Enterprises In Keiyo South Sub County In Kenya. International Journal of Arts and Entrepreneurship. Vol. 5 (7) pp 186 – 204.

ABSTRACT

 

 

The dairy sub-sector as a constituent of livestock agriculture contributes to about 3.5 of Kenya’s GDD and leads Eastern as well as Southern Africa in terms of livestock production. Being the most developed within livestock sub-sector in Kenya, it has continued to experience significant challenges that include lack of value added dairy products and high unsustainable costs of production that have therefore robbed the economy of the opportunity to gain self-sufficiency in food production. The challenges cannot be more pronounced than during the rainy season when there is a huge milk glut among farmers leading to huge financial losses. Questions still linger whether a smallholder dominated economy like Kenya can carry out value addition and whether smallholder farmers can participate significantly in value addition process. This study sought to establish to establish the determinants of adoption of Value Addition Technology among dairy enterprises in Keiyo south sub county. The study adopted descriptive survey design. The target population for this study was 129 chairpersons, treasurers, secretaries, managers, board members, clerks and quality assurance officers from the 8 cooling plants in Keiyo south sub county. The study used a census survey with a sample size of 129 respondents from the 8 cooling plants. The study concluded that the four variables under examination in this study positively and significantly influences adoption of Value Addition Technology among dairy enterprises in Keiyo south sub county. The study recommended that in order for the dairy enterprises in Keiyo south sub county to successfully adopt value addition technology, there is need to focus on key availability of funding indicators including availability of collateral securities required to secure loans, manageable rate of interest on loans from financial institutions, reduction of heavy penalties attached to loan defaults, access to multiple sources of finance for the enterprise and using funds obtained from financial institutions to make up a large part of the Enterprise`s financial base. The study also stressed on the need for the dairy enterprises in the region to focus on support infrastructure such as installation of a properly functioning ICT system in the enterprise, government support through construction of all-weather roads in this area to curb losses that result especially during heavy rains, an uninterrupted source of power into the cooling plant, properly functioning drainage and sewerage systems and availability of a properly functioning water supply system into the cooling plant.

Key Words: Funding, Infrastructure, Entrepreneurial Skills, Entrepreneurial Innovativeness, Value Addition Technology

 

 

 

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