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Kenyan Dairy Policy Change: Influence Pathways and Economic Impacts

Simeon Kaitibie, Amos Omore, Karl Rich and Patti Kristjanson

World Development, 2010, vol. 38, issue 10, 1494-1505

Abstract: Summary Marketing, transporting, processing, and consuming dairy products contribute significantly to the livelihoods of many poor Kenyan households. This study analyzes the impact of recent research supporting policy changes to liberalize informal milk markets. The study found that behavioral changes in dairy sector participants arising from the research evidence-supported policy and regulatory changes led to an average 9% reduction in milk-marketing margins, and a significant increase in the number of licensed small-scale milk vendors. High welfare benefits arising from the policy change, with a net present value of US$230 million, are captured by consumers, producers, and milk vendors.

Keywords: policy-oriented research; impact assessment; dairy; equilibrium displacement; Africa; Kenya (search for similar items in EconPapers)
Date: 2010
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