AbstractSupermarkets andother busy markets are rapidly adopting the use of milk atms in the marketingof milk. This is because prices are lucrative for suppliers of fresh milk. Inthe past dairy sector have had some challenges but most of these challengeshave been solved mostly in production stage hence making this business asucces.the challenge to farmers has been when it comes to marketing of their product.

Thanks to the changing technology farmers who do not have access to bigprocessing companies such as Brookside kcc fresher and others can now selltheir milk locally by using milk atms. In order to to address this knowledgegap this study set out to examine the effects of milk atms on marketing of milkby small holder farmers who do not have privilege to sell their milk to large processors.To address this the present study analyzed data from a random sample of 56 milkatm operators in kiambu county. Descriptive methods were used to characterizesmall holders. the results show that marketing is dominated by male with apercentage of 55.

9% .average prices of milk in most areas range between 65-70ksh.based on this findings the study recommends more funding to small holderfarmers to be able to buy such machines.Key words; small holder; milk atms; supermarkets; 1.0 INTRODUCTION1.

1 backgroundsin the Kenyaneconomy , agriculture is the leading contributor in the Kenyan income.Agriculture consists of several sectors but mostly will be dealing with thedairy sector. Milk is the most common product that most Kenyans consume each day.

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Milk can be drunk fresh, used to make tea and it also has other products suchas cheese yourghourt and mala.this products are useful in the food industry. Processingis dominated by large firms such as Brookside kcc fresher who process and pack freshmilk.kenyan dairy industry has been a success due to extension services andalso Kenyan climate which is favorable for exotic breeds that have a betterproduction hence boosting production levels of milk. Milk being highlyperishable means that its marketing should be able to make it available forpeople for consumption as soon as its production. Supermarkets provide bothprocessed milk and also others are also adopting selling fresh milk in the milkatms.

few years back such machines were not in the supermarkets but since therise of their popularity they have taken over in most supermarket and otherhigh end markets such as busy market areas. Supermarkets and these busy marketsprovide reliable and fast growing market for milk and also attract better pricesin overall. 1.2 Statement ofthe research problemThe method of marketingof milk determines how much the seller charges for his product. Milk atmsattract better prices, offer good hygiene practices and also milk is availablealmost any time a buyer requires.

Besides that the owner doesn’t have to bearound the whole time in marketing giving him/her time to spend on other urgentmatters. Previous studies have dominated on large processors since they havethe huge chunk of the market and are able to deal with wide variety of farmersand able to reach a large market. for small farmers who do not belong to anycooperatives or who do not sell to this processors, the only option they haveis to hawk their milk or use milk atms in the marketing of their milk. rise ofmilk atms is being achieved since there are numerous supermarkets in thecountry and each is trying to step up the completion in the industry.

Theliterature points out how the atms have improved the marketing of milk. Howeversince this machines are new, there is limited information about them.Understanding how this machines operate and the related cost is crucial pointin coming up with their contribution in the overall marketing. The best to myknowledge is there is no such study that has been carried in milk atms effecton marketing in Kiambu County despite this technology being on a rise. Thisstudy aims to add to the existing information on milk marketing to help thesmall holder farmers deal with the marketing issues they face.  1.

3 Objective ofthe studyThe main objectiveof this study was to find out the effects of milk atms in the marketing of milkby small holder farmers in kiambu county, Kenya. The specificobjectives were;i.      todetermine factors that influence use of milk atms in milk marketingii.    tocharacterize marketing of milkCritics gapProductivity trendsand performance of dairy farming in KenyaKenyans dairyindustry is dynamic and plays an important role in economic and nutrition ofthis country.kenya has one of the largest dairy industries in the sub-Saharanafrica.

through the last livestock census conducted in 1966 the current officialcattle population statistics came from ministry of livestock and developmentthrough its field reports compiled by extension officials the officialstatistics place the no of milking cattle at 3.8 million(government of Kenya2008)a survey conductedby small holder dairy project(sdp) asserts that approximately 6.7 million dairycattle in Kenya. The food agricultural organization (fao) on the other handestimates a figure of 5.5 million milking animals.the industry hasgrown tremendously since its liberalization in 1992.liberalization lead to arapid growth of informal milk trade that consist of small scale operatorsdealing in marketing of raw milk. At the time there was an emergence of new institutionalarrangement in milk collection processing and marketing which included hawkers,brokers and self help groups.

The informal milk market controls an estimated70% of the total milk marketed in Kenya(kdb2009;government of Kenya 2006).thissector is important and is driven by among other factors the traditionalpreferences for fresh milk and its relatively lower costs.Raw milk oftenoffers prices which are high to producers and lower to consumers but withseveral challenges relating to quality control and standards and the associatedhealth and safety concerns. The informal milk market has in the past facedseveral challenges. This was because prior to policy change in 2004 informalvendors including mobile milk traders and bar vendors and milk transporterswere not officially recognized under the old dairy policy.As a result theywere frequently harassed as powerful marketing dairy players sought to protecttheir interest and increase their market share 1.4 justificationof the study This study providesimportant information on the how milk marketing has been changed through use oftechnology in Kiambu County. It also provides insight on the factors thatinfluence the use of milk atms.

This information will be useful to stakeholdersin the dairy sector. This will help in expanding the dairy sector by attractingmore players in the marketing of milk. The study can also help theorganizations taking the project of farming specifically those that want toventure into the dairy sector.2.0 materials and method 2.1study areaKiambu County waschosen as the area of study because of its proximity to Nairobi city where themarket of milk is high and also the area consist mostly of dairy farmers. Theclimate here has proven to be vital for both animal rearing and flourishing ofpasture for the animals.

Also the area is home to giant milk processors such asfresher and other dairy cooperatives. Since not all the small holder farmershave the privilege to work with either this processors or cooperatives someresort to marketing on their own. Thanks to technology they are able to changefrom hawking milk to selling the milk in atms. 2.

2 dataPrimary data was collected buy use of a questionnaire. a random sample of57 respondents was done mainly targeting those who operated or owned the milkatms in kiambu county. The major                3.0 RESULTS ofsmall holder farmers with milk atmsCharacterization ofsmall holder farmers helps in classifying farm household into similar ordifferent groups for which targeted policy intervention can be applied.Characterization ofthe farmers and their households.This can berepresented by tables;  gender of respondent   Frequency Percent Valid Percent Cumulative Percent Valid male 33 55.9 57.9 57.

9 female 24 40.7 42.1 100.

0 Total 57 96.6 100.0   Missing System 2 3.4     Total 59 100.0       More than half ofrespondents were male 55.9 %.this implies that marketing is male dominated activity.This suggests that more male are aware of opportunities in marketing ascompared to female.

     average price of milk   Frequency Percent Valid Percent Cumulative Percent Valid 60-65 15 25.4 26.3 26.3 65-70 33 55.

9 57.9 84.2 above 70 9 15.3 15.8 100.0 Total 57 96.

6 100.0   Missing System 2 3.4     Total 59 100.0       The average rangeof milk price was between 65-70 ksh .although few areas were selling above 70ksh and this can be attributed to factors such as transport costs which arelikely to affect the price of milk.majority of thefarmers sold between 20-30 liters of milk per day.atms are not targeted at alarge market that why they are numerous in certain areas where the populationis high. However it’s noted that all the milk was sold in almost all areas thatthe machines operated.

So the farmers are said to have satisfied the milkdemand.  do you keep records of your business   Frequency Percent Valid Percent Cumulative Percent Valid yes 34 57.6 59.6 59.6 no 12 20.3 21.1 80.

7 sometimes 11 18.6 19.3 100.0 Total 57 96.6 100.0   Missing System 2 3.

4     Total 59 100.0       Record keeping isessential in all businesses because you can tell whether the business is profitable.The study shows that more than half of the businesses keep records. Records arealso important in securing loans. Those keeping records were 57.6%CONCLUSIONS &RECOMMENDATIONSThe findings showthat here has been an increase in milk production however not all the milk is sold.Some of the milk goes bad since farmers are not able to access the market largeportion of milk is consumed in urban centers as compared to production zones.

to tackle this marketing problem use of milk atms is being put into use.in the finds ,alsothe government plays an important role in regulation of the sector. Licensing,health requirements and also other rules such as pasteurization of milk havehelped in raising hygiene standards in this industry. This has made it safe forbuyers.Global milk demandis growing, mostly in developing countries. Once this increased volume of milkis being produced by small-scale dairy farmers, this presents a uniqueopportunity for building up a sustainable dairy chain that sources milk fromsmallholder dairy farmers to meet not only the demands of local consumers butalso those of the world market.

While capitalizing on this opportunity couldgenerate significant wealth in rural areas and provide benefits to allstakeholders involved in the dairy value chain, it calls for a sound dairydevelopment strategy.To be successful,any dairy development strategy should be based on the principle of ‘creating value’in every segment of the dairy chain. This means that every player in the chain(farmer, farm input supplier, milk traders, processors, retailers, etc.) makesa profit, i.e. the returns are higher than the costs.

  Stakeholder consultation: a critical issuehere is to agree on goals for each segment of the dairy chain that ‘fittogether’ and are mutually supportive. Once the strategic goals (especially offarmers and processors) are in line with each other, it would be desirable forlocal governments, NGOs and other potential partners to become involved andtheir capacities and roles in supporting the development process be considered.    Risk management: given the increasingvolatility of milk and feed prices, there is a pressing need to incorporaterisk management systems into dairy development strategies. This is especiallyimportant for the dairy farmers once they move from small-scale/ low-yieldoperations to larger farms with more intensive production practices.

    Monitoring, evaluation and continuousstrategy improvement: the world is rapidly evolving, and agriculturaldevelopment is very dynamic with regard to farm structure, input prices, pricesfor milk and dairy products, consumer perceptions, etc. It is therefore notsufficient to start a dairy development programmers with a sound strategy: itis also necessary to constantly re-assess the chosen strategy against changingexternal factors.There is a need forregular evaluations of each part of the dairy chain and for comparison withcounterparts in other dairy regions. This calls for professionals withbackgrounds in dairy supply chain management and dairy farm economics. Theknowledge created through such comparative studies should be translated intocontinuous adaptation of the dairy chain to changing circumstances so as toensure the future prosperity of all the actors involved in the dairy sector. REFERENCES