Economic contribution and viability of dairy goats: implications for a breeding programme.

To augment the incomes of smallholder farmers in Kenya and consequently improve their nutrition and income, many development organisations and policy makers are increasingly promoting dairy goat farming. Among the key organisations supporting the initiative is Heifer Project International-Kenya (HPIK). However, the economic contribution and viability of dairy goats under the HPIK project have not been studied so far. The aim of the present study was to determine the contribution of dairy goats to household income and the performance of the dairy goat enterprise using gross and net margins from dairy goat farming as an indicator of economic viability. A survey covering 71 farmers was carried out in the Coast, Nyanza, and the Rift Valley provinces of Kenya using a set of pre-tested structured and semi-structured questionnaires. Results showed that, on average, the dairy goat enterprise contributed, correspondingly, about 15.2% and 4.8% to the total livestock and overall household income and was viable. Differences in gross and net margins across agroecological zones were attributed to milk prices. Despite the existence of non-viable enterprises in two of the provinces, the few present suggest the possibility of obtaining reliable incomes from the enterprise. Redoubling of effort or re-orientation of production to match the local and external requirements would, however, be necessary. Costs and revenues were similar across the agroecological zones. Farmers with positive gross margins had better milk and stock sales and vice versa. The success of a dairy goat enterprise is attributed to location and good management. Besides, farmers' awareness of the market demands within and outside the community is important in establishing production goals and may be crucial to achieving a positive gross margin.