Determinants of Performance in Dairy Cooperative Societies in Kenya: A Case of Selected Cooperative Societies in Kiambu County

Abstract

Smallholder dairy farming offers regular income and asset accumulation to families through empowerment economically and improving livelihood. Despite this, the dairy industry and the enterprises that operate in there like cooperative societies have faced challenges influencing the performance of both well performing and not well performing. The major objective of this research was to analyze determinants of performance of the dairy industry in Kenya: a case study of selected cooperative societies in Kiambu County. Specifically, the study sought to determine the influence of management and its subsequent impact on the their performance;impact of marketing on performance ; impact of training of staff members on their performance of dairy cooperative societies; in dairy cooperative societies in Kiambu County, Kenya. The study was guided by; Economic Game Theory of Cooperatives, Scientific Theory of Management, Agency Theory and the Theory of Transfer of Learning. The research may be significant to the management of dairy cooperative societies in Kiambu County. The target population consisted of 15 management committee members, 24 top management and 35 staff members totaling to 74 employees. The research adopted census and questionnaires applied in collecting data. During data analysis, quantitative approaches were used where Statistical Package for Social Sciences (SPSS version 23.0) analyzed descriptive and inferential statistics. The data was presented using frequency distribution tables. The findings from 58 respondents were that performance of dairy cooperative societies was significantly related with management (p < 0.05) and training (p < 0.05). However, the relationship between milk marketing and performance was insignificant at p < 0.05 but only significant at p <0.1). It was also found that while management style had a strong negative influence on performance (t = - 4.1874, p <0.001) both marketing, and training had positive influence on performance (Marketing: t = 1.732, p = 0.089; Training: t = 8.512, p <0.001). The implication of these findings is that managers and staff of dairy cooperatives need to adopt management style and marketing, which would positively contribute to performance. The study recommends that; cooperatives should continue emphasizing training since it had the greatest influence on performance. Moreover, dairy industry should invest in milk market infrastructure, which will subsequently improve breeding programs. Further, dairy cooperatives should focus on improving promotion, distribution and quality of milk as a key strategy to realize the needed performance. The management style should also be improved because it was found to negatively impact performance. Specifically, cooperatives should promote professional management.