2012, Kuma, Berhanu, Baker, Derek, Getnet, Kindie, Belay, Kassa

Dairy value chain was analyzed combining, analytical and participatory tools to identify and prioritize constraints and to come up with strategic interventions in Wolayita zone, Ethiopia. Information at zone, woreda, and kebele and actors level was collected through discussions and individual expert contacts. In addition, group and focus group discussions were conducted with representatives of value chain actors. Rapid market appraisal technique was used with butter traders at four major market centers. Random samples of 398 dairy farmers, 198 consumers, 79 butter traders, and 53 hotels/restaurants were surveyed. Analytical tools including descriptive statistics, total gross marketing margin and farmer's gross marketing margin were used. Dairy farmers were found producing mean milk yield of 8 litres per day, out of which 27.8% was used for home consumption, 58.2% used to sale to market outlets and 26.6% used for value addition. About 27.9%, 22.1%, 9.4% of the milk produced per day was sold to consumers, hotels/restaurants and cooperatives, respectively. Hotels/restaurants purchased on average 52.6 litres of milk per day with average price of 5.5 birr per liter and sold with average price of birr 5.9 per liter. Traders purchased on average 53kg of butter per day with average purchase price of birr 54.49 per kg and average sale price of birr 59 per kg. Consumers purchased milk and butter with average price of birr 4.9 and 53.63 birr per liter and per kg respectively. Shortage of feed, low cattle productivity and genetics, inadequate extension services, inadequate institutional support and veterinary services were major constraints. Fodder trees and mixed tree legume protein banks, efficient breeds selection that adapt to the environment, appropriate technical and institutional support and capacity improvement are important steps to improve smallholder dairy value chain. Increased dairy product availability at affordable prices and promotional activities are necessary to increase consumption levels.

2014, Kuma, Berhanu, Baker, Derek, Getnet, Kindie, Kassa, Belay

The study was undertaken with the objective of assessing factors affecting milk market participation and volume of supply in Wolaita zone, Ethiopia. Out of the total 32,972 households, 398 households were selected using simple random sampling methods. Data were collected using discussions, rapid market appraisal, observation and formal survey. The data generated were analyzed using both descriptive and Heckman two-stage selection econometric models. The results revealed that out of an average 8 L of milk produced per day, 4 L were supplied to markets. The probit model results indicated that age of household head, dairy farming experience, milk yield per day, milking cow ownership and landholdings size played a significant role in milk market participation. Second-stage Heckman selection estimation pointed out that milk yield per day, dairy farming experiences and number of members in a household significantly affected volume of milk supply. Age of a household positively and significantly affected the probability of milk market participation. Dairy farming experiences of a household negatively and significantly affected milk market participation and volume of supply. The number of milking cows owned by a household positively and significantly affected probability of milk market participation. Milk yield per day impacted positively and significantly milk market participation and volume of supply. The policy implication is that old aged household heads should be educated through extension services to enhance milk market participation. Moreover, integration of crossbred cow, upgrading milk production potential of local cows, among others should be used to increase milk yield per day per household and hence milk market participation.

2014, Hamza, Kanar, Rich, Karl, Baker, Derek, Hendrickx, Saskia

Goat producers in Inhassoro follow traditional management practices that lead to low supply of low quality goats. This has negative impacts on profitability, and on market access. Traders who buy in the Inhassoro locality buy only small volumes, and buyers from external markets are unaware of potential market supply in Inhassoro. This interaction of production constraints and limited information flows in the value chain was addressed using a system dynamics model for various commercialization scenarios. Simulation results show that improving goat production and animal health practices alone without concomitant improvements in market access have negative impacts on the financial performance of producers and no impact on other value chain actors. However, interventions that both improve market access and animal health have significant positive impacts on the financial performance of all value chain actors. The model's explicit treatment of herd dynamics contribute significantly to these conclusions, particularly the lagged production response inherent in livestock breeding systems.

2013, Baker, Derek, Mtimet, Nadhem, Pica-Ciamarra, Ugo, Jagwe, John

This paper presents the results of a rapid consumer survey undertaken in Uganda. The survey aimed at identifying preferred quality and safety attributes, retail forms and retail outlets for major livestock products and by type of consumers. Results of the survey, combined with nationally representative household datasets, allows description of both the quantitative and qualitative dimensions of the developing market for animal-source foods, which is anticipated to provide major business opportunities for small-scale livestock producers in the short and medium terms.

2006, Baker, Derek, Baltzer, Kenneth, Moller, Anja Skadaer

Cross-sectional data from a survey of Danish firms are used to examine branding behavior in 2002 and its change between 1997 and 2002. Summary data from the survey are presented. Branding behavior is defined and relevant literature is reviewed. Based on hypotheses developed from this literature and supporting features of the Danish food marketing chain, six econometric models are specified. Specification accounts for dependent variables' characteristics (count and fractional data, and truncated samples) Missing values are replaced using Griliches' method (Griliches, 1986) Large firms are found to own and introduce the most brands, although few associations with the commodity sector are identified. Firms' use of retail brands is found to substitute for brand introduction in the long run and to increase with ownership by retail firms. Conclusions are drawn regarding the strategic stance of retailers in the Danish food system and its employment of retailers' own-label brands.

2012, Terfa, Zelalem G, Haile, A, Baker, Derek, Kassie, Girma T

Sheep production is an integral part of the subsistence crop-livestock based livelihoods of the Ethiopian highlands and plays a crucial role in economic development and poverty reduction. This study analyzed determinants of intensity of market participation of smallholder sheep keepers in Western Ethiopia. Data were generated from the rural households in their villages in Horro Guduru locality, Western Ethiopia. Poisson model was employed to examine factors determining the level of sheep keepers' market participation. The results of the empirical analysis show that flock size, family-size, educational background, experience, access to market information and access to veterinary service are decisive factors determining the household's level of market participation. This study highlights the need to expand market information and veterinary services to sheep producers and capacity for their delivery. It also magnifies essential changes that need to happen in the management and marketing of sheep at farm level in order to generate higher and sustainable income for sheep producers in the region.

2007, Baker, Derek

The paper examines the incentives and mechanisms for provision of food quality attributes within the food marketing chain. A mathematical program is used to model two objective specifications: one maximising whole-chain profits and the other maximising profits at the single stage of the chain at which provision occurs. Scenarios presented include a range of technological conditions at different stages of the food chain and the allocation of retail price premia amongst stages. Indicative Danish food industry data are used. Results list provision outcomes, profitability and its distribution amongst chain participants, and LaGrangian multiplier values. The different forms of scope economies at different stages of the chain have important implications for provision: particularly in the single stage model. Shares of price premia have little impact on provision in the whole chain model, but are very influential in the single stage model. Commercial and policy applications of the research include its focus on within-chain compensation, and the identification of appropriate targets and levels for subsidies.

2009, Park, Timothy A, Baker, Derek

This paper evaluates how new product introductions by Danish agri-food industry firms are affected by food and safety regulations and sales contract features specified by firms. The econometric model is based on a quantile regression for count data of new product introductions. Food and safety regulations have significant negative impacts constraining the innovation of firms with the most extensive portfolios of new products or the firms located at the 90% ZA-quantile of new product introductions. Control over the specification and design of sales contract induces higher levels of new product introductions for the highly innovative firms. The negative binomial count model overlooks the impacts of both these factors on new products, highlighting the value of the quantile approach.

2014, Mtimet, Nadhem, Baker, Derek, Audho, James, Oyieng, Edwin, Ojango, Julie

This study investigates the purchase behavior of sheep traders in Kajiado County in Kenya. This is, to the best of our knowledge, the first investigation on sheep traders by the use of Best-Worst technique. A face-to-face questionnaire was undertaken in three livestock markets (Kiserian, Bissil and Mile 46) involving 108 traders. The results indicated that sheep traders are also involved in other types of animal trading, essentially cattle and goats. Income from sheep trading represents slightly less of the half of total incomes, with some differences between livestock traders' groups (markets). Traders are generally involved in other business activities among the value chain essentially such as livestock production, fattening and slaughtering. Four attributes with different levels have been utilized to describe the Best-Worst experiment: sheep age, sex, breed and price. All sheep traders assign higher importance to the sheep breed. This is essentially the case of Dorper pure breed and Dorper x Red Maasai cross breed. Price attribute was the second most important factor for sheep traders with higher preferences for the two extreme price levels. Sheep age and sex were found of least importance for traders. Providing sheep smallholders with the appropriate animal breed characteristics will enable them match market demand and increase their incomes. This is one of tasks of ILRI Kapiti experimental farm.

2011, Kuma, Berhanu, Getnet, Kindie, Baker, Derek, Kassa, Belay

On-farm value addition to farm products is recognized and highly promoted through value chain approaches for its benefit in terms of improving farm income. Growing demand and high price for value added milk products, together with the availability of ample livestock resources, would provide opportunities for smallholder farmers in Ethiopia to diversify their livelihoods. Nevertheless, their participation in milk value addition is perceived to be generally low. Apart from farm household characteristics, organizational and institutional issues influence farmers' participation decisions and level of participation in-farm level milk value addition. By analyzing survey data using Heckman two-stage selection model, this article identified determinants of participation decisions and level of participation in-farm level milk value addition by smallholder farmers in Ethiopia. The first-stage probit model estimation results indicate that milk yield, distance from urban centers, household demography (age and child), livestock extension services, the need to extend shelf life, consideration of milk products for social factors such as holidays and fasting, and availability of labor for milk value addition determined household's decision to add values to milk. The results also show that most of the factors determining decision of participation in milk value addition also determined the level of participation.