SJ WorldNews - шаблон joomla Авто

 Our Mandate

To conduct policy research and disseminate findings in an objective manner.

 Vision

A people forever free from hunger and poverty.

 Mission

To conduct pro-active policy research and advocacy that enhance food security, create wealth and sustain the environment.

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Tegemeo's Director Dr. Miltone Ayieko welcomes participants to the five day training, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Tegemeo's MLE Unit Director introduces participants to the five day training, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Dr Rosern Rwampororo, one of the trainers, takes the participants through the laid out course content, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Participants during interactive sessions, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Participants during interactive sessions, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Participants during interactive sessions, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Dr. Tesfaye Beshah, one of the trainers, takes the participants through the laid out course content, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Participants during interactive sessions, 9-13 Oct 2017

  • Course on Monitoring Learning & Evaluation

    Course on Monitoring Learning & Evaluation

    Participants group photo, 9-13 Oct 2017

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Participants at the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Participants at the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Participants at the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Tegemeo Director Dr. Miltone Ayieko addresses journalists during the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Tegemeo Director Dr. Miltone Ayieko addresses journalists during the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Kevin Onyango, Tegemeo Research Associate addresses participants of the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Dr. Dennis Otieno, Tegemeo's Research Fellow addresses participants of the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • ANNUAL COP SURVEY RELEASED, 5th October 2017

    ANNUAL COP SURVEY RELEASED, 5th October 2017

    Dr. Tim Njagi, Tegemeo's Research Fellow addresses participants of the breakfast forum held to share the 2017/2018 cropping year Cost Of Production Findings

  • Tegemeo Signs MOU with EAGC, 3rd July 2017

    Tegemeo Signs MOU with EAGC, 3rd July 2017

    The Memorandum Of Understanding creates a framework for collaboration that will improve research and analysis of agricultural trade, policy and advocacy.

  • Tegemeo Signs MOU with EAGC, 3rd July 2017

    Tegemeo Signs MOU with EAGC, 3rd July 2017

    The Memorandum Of Understanding creates a framework for collaboration that will improve research and analysis of agricultural trade, policy and advocacy.

  • Tegemeo Signs MOU with EAGC, 3rd July 2017

    Tegemeo Signs MOU with EAGC, 3rd July 2017

    The Memorandum Of Understanding creates a framework for collaboration that will improve research and analysis of agricultural trade, policy and advocacy.

  • Tegemeo Signs MOU with EAGC, 3rd July 2017

    Tegemeo Signs MOU with EAGC, 3rd July 2017

    The Memorandum Of Understanding creates a framework for collaboration that will improve research and analysis of agricultural trade, policy and advocacy.

  • Tegemeo Signs MOU with EAGC, 3rd July 2017

    Tegemeo Signs MOU with EAGC, 3rd July 2017

    The Memorandum Of Understanding creates a framework for collaboration that will improve research and analysis of agricultural trade, policy and advocacy.

  • Tegemeo @ Egerton University 11th Conference

    Tegemeo @ Egerton University 11th Conference

    Part of Tegemeo staff take part in the exhibition at the Egerton University 11th International Conference, 29th-31st March 2017, Njoro Nakuru

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Tegemeo Institute's Measurement, Learning & Evaluation (MLE) - Unit hosts a Social Networking Event at the Conference

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Guests have a good time at the Social Networking Event hosted by Tegemeo Institute's Measurement, Learning & Evaluation (MLE) - Unit

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    The MLE unit team welcomes Dr. Florence Etta at the social dinner hosted by Tegemeo Institute's Measurement, Learning & Evaluation (MLE) - Unit

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Tegemeo Institute's Measurement Learning & Evaluation (MLE) Unit hosts a pre-conference workshop on Agricultural Data & Technology use, Kampala, Uganda Conference Dates - 27th–31st March, 2017

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Dr. Mercy Kamau- Director MLE unit giving a synopsis of the of the Institute MLE agenda during the Social Networking Dinner

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Tegemeo Institute's Measurement, Learning & Evaluation (MLE) Unit hosts a pre-conference workshop on Agricultural Data & Technology use, Kampala, Uganda Conference Dates - 27th – 31st March, 2017

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Media interviews the Director, Tegemeo Institute during the Social Dinner hosted by the Institutes MLE Unit

  • Dr. Mary Mathenge Director Tegemeo @ NMG Forum

    Dr. Mary Mathenge Director Tegemeo @ NMG Forum

    Tegemeo Institute took part at the Inaugural Food Security and Water Nation Media Group Leadership Forum, 3rd April 2017

  • Tegemeo @ Egerton University 11th Conference

    Tegemeo @ Egerton University 11th Conference

    Egerton University VC Prof Rose Mwonya opens the 11th International Conference, 29th-31st March 2017, Njoro Nakuru

  • Tegemeo @ Egerton University 11th Conference

    Tegemeo @ Egerton University 11th Conference

    Tegemeo's Kevin Onyango presents at the 11th International Conference, 29th-31st March 2017, Njoro Nakuru Tegemeo Institute took part at the Egerton University 11th International Conference, 29th-31st March 2017

  • Tegemeo @ 8th AfrEA International Conference

    Tegemeo @ 8th AfrEA International Conference

    Tegemeo Institute's Measurement, Learning & Evaluation (MLE) - Unit hosts a pre-conference workshop on Agricultural Data & Technology use, Kampala, Uganda Conference Dates - 27th – 31st March, 2017

  • Tegemeo hosts Ella Workshop, 16th March 2017

    Tegemeo hosts Ella Workshop, 16th March 2017

    The Workshop focused on Land Tenure and Sustainable Pastoralist Systems and was held in Ololulung'a, Narok County

  • Tegemeo hosts Ella Workshop, 16th March 2017

    Tegemeo hosts Ella Workshop, 16th March 2017

    David Muntet, a pastoralist and beneficially of the ELLA Study Tour held in November 2016 shares lessons and experiences with the workshop participants.

  • Tegemeo Hosts Seed Conference, 8th February 2017

    Tegemeo Hosts Seed Conference, 8th February 2017

    Theme: Enhancing Smallholder Productivity in Kenya: Evidence from a Randomized Controlled Trial of New Seed Varieties, 8th February, 2017

  • Tegemeo Hosts Seed Conference, 8th February 2017

    Tegemeo Hosts Seed Conference, 8th February 2017

    Conference Theme: Enhancing Small-holder Productivity in Kenya: Evidence from a Randomized Controlled Trial of New Seed Varieties

  • Tegemeo Hosts Seed Conference, 8th February 2017

    Tegemeo Hosts Seed Conference, 8th February 2017

    Conference Theme: Enhancing Small-holder Productivity in Kenya: Evidence from a Randomized Controlled Trial of New Seed Varieties

  • Tegemeo at the Mau - Egerton Cross Country 2017

    Tegemeo at the Mau - Egerton Cross Country 2017

    Egerton University VC Prof. Rose Mwonya flags off the university staff race

  • Tegemeo at the Mau - Egerton Cross Country 2017

    Tegemeo at the Mau - Egerton Cross Country 2017

    Egerton University VC Prof. Rose Mwonya Crosses the finishing line

  • Tegemeo at the Mau - Egerton Cross Country 2017

    Tegemeo at the Mau - Egerton Cross Country 2017

    Part of the Tegemeo Staff Team at the "Run for the Mau Event"

  • Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Conference theme: “Anticipating Africa’s Agricultural Transformation Pathways in the Context of Climate Change: Lessons from the Current Regional Drought”

  • Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Conference theme: “Anticipating Africa’s Agricultural Transformation Pathways in the Context of Climate Change: Lessons from the Current Regional Drought”

  • Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Tegemeo Hosts 3rd Annual ReNAPRI Conference 2016

    Conference theme: “Anticipating Africa’s Agricultural Transformation Pathways in the Context of Climate Change: Lessons from the Current Regional Drought”

  • TEGEMEO COST OF PRODUCTION ASSESMENT 2016

    TEGEMEO COST OF PRODUCTION ASSESMENT 2016

    Establishing Cost of Rice Production Year 2015

  • Tegemeo Cost of Production Assessment 2016

    Tegemeo Cost of Production Assessment 2016

    Tegemeo Hosts Breakfast Meeting on the Competitiveness of Key Food Staples in Kenya: Role of Production Costs and Pricing, 10 October 2016

  • Tegemeo Cost of Production Assessment 2016

    Tegemeo Cost of Production Assessment 2016

    Tegemeo Hosts Breakfast Meeting on the Competitiveness of Key Food Staples in Kenya: Role of Production Costs and Pricing, 10 October 2016

  • Tegemeo Cost of Production Assessment 2016

    Tegemeo Cost of Production Assessment 2016

    Tegemeo Hosts Breakfast Meeting on the Competitiveness of Key Food Staples in Kenya: Role of Production Costs and Pricing, 10 October 2016

Tegemeo Institute of Agricultural Policy and Development is a policy research institute under the Division of Research and Extension of Egerton University.

Research Topics

Tegemeo Institute Blog

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.

Efficiency and profitability of the zero-grazing production system in Kenya

Posted by on in Uncategorized
  • Font size: Larger Smaller
  • Hits: 849
  • Print

Dairy is an important industry in Kenya contributing about 14% of the agriculture GDP and 4% of the National GDP. It supports more than one million smallholders and plays a critical role in food and nutrition security through milk consumption and increased household incomes. It is estimated that about 80% of milk is produced by smallholders. Due to these factors, in addition to the commercial orientation in the dairy industry in Kenya, the sub-sector has the potential of playing an important role in improving the livelihoods of small-scale farmers hence also contributing to poverty reduction.

However, there are several challenges in the sector including low productivity and high costs of production, which may compromise the extent to which the industry can contribute to these goals. Additionally, the system of production practised may affect performance. As average per household land sizes continue to shrink, many farmers are shifting to zero-grazing system. The zero-grazing system is in many cases also the model of choice by development programs that are promoting dairy production in the country. But does the shift to zero-grazing system come with increased efficiency and profitability? Tegemeo Institute partnered with the Kenya Dairy Board to seek answers to these questions in a recent study undertaken in 20 counties that are important in milk production in the country. Farmers interviewed ranged from those practising zero-grazing to those undertaking open grazing.

Our study finds that zero-grazing is the most efficient production system. Despite expected differences by counties, famers practising zero-grazing have the highest milk productivity at an average of 9.2 litres/cow/day compared to 6.8 litres for semi-zero and 4 litres for the open grazers. Consequently, the zero-grazing system gives the highest per unit revenue on average, translating to KSh 103,773 worth of milk per cow per year. The other systems return KSh 84,430 (semi-zero) and KSh 39,030 (open).

The good outlook of the zero-grazing system dulls however when costs are considered. Our study finds that costs are highest for the zero-grazing system. Without accounting for own factors of production and fixed costs, an average zero grazer spent KSh 62,081 per cow per year, compared to KSh 42,851 for semi-zero grazers and KSh 15,197 for open grazers. This leads to a gross margin of KSh 41,691 per cow per year for zero grazers, closely followed by the semi-grazing system at KSh 41,579, and KSh for 23,832 for open grazing. The high cost for zero grazers hence equalizes their gross margins to those of semi-zero grazers, despite zero-grazing resulting in higher milk production and revenues from milk. The largest direct cost components for zero grazers are feed concentrates and hired labour, contributing 42% and 18% to total costs respectively.

Accounting for full costs of milk production, including own factors of production and fixed costs, we find that profitability of the semi-zero grazing system overtakes that of the zero-grazing system. Full costs of milk production amount to KSh 102,963 per cow per year for zero grazers, KSh 71,076 for semi-zero grazers and KSh 29,090 for open grazers. The zero grazers thus return the lowest profit at KSh 809 per cow per year, versus KSh 13,354 for semi-zero grazers and KSh 9,940 for open grazers. Labour (including family labour) is the largest component of total cost contributing 38% followed by feed concentrates at 23%.

As population continues to increases and average land sizes shrink further, zero grazing may be the only possible production system for majority of small holders in the future. However, this study finds that profits are lowest under this system, due to two reasons. First, the efficiency observed under this system in terms of milk productivity and consequently revenue from milk is not high enough to offset the incremental costs that come with intensification. Even if productivity in some counties is higher, an average productivity of 9.2 litres/cow per day as observed in this study is clearly low for zero-grazing system. Increased productivity would increase profitability substantially. Simulations show that if average productivity is increased by merely 30%, translating to an average of 12 litres per cow per day, profits for zero-grazing would increase to KSh 31,940/cow/year. A productivity increase to an average of 15 litres per cow per day (63% increase), lifts profits to KSh 66,227/cow/year. Clearly, policy measures are required to address low productivity under zero grazing. Adoption of improved breeds, addressing quality issues in feed concentrates, and improved feeding practices are some of the means to achieve this increased productivity.

Secondly, costs are highest under the zero-grazing system since it is the most input intensive system. Possible ways to address the high cost of feed concentrates and labour include addressing feed quality issues, promoting feed formulation at farm-level, lowering tax regimes, and exploring small-scale mechanization.

 

0

Thematic Areas

Watch our Videos

Please update your Flash Player to view content.

  linkedin

Subscribe to our newsletter

Style Setting

Fonts

Layouts

Direction

Template Widths

px  %

px  %