A Comparative Analysis of Breeding Information Sourcing and Net Margin Estimates of Inseminations and Replacement Decisions of Smallholder Dairy Farmers

Milk deficit (MD) in western Kenya (MD) has created high demand for dairy breeding stock. This is mainly sourced from the neighbouring milk surplus Rift Valley (RV) region. Because of limited access to artificial insemination (AI) services, supply of breeding stock is insufficient and stock prices therefore high for most farmers. Farmers therefore inseminate (breed) using bulls of unproven and often poor progeny or purchase cullcows. Cull-cows are either too old or problematic. To quantify the benefits associated with these decisions, this study analysed breeding information smallholder farmers seek and the net margins associated with their insemination and replacement decisions. The study employed a cross-sectional survey of households in both the MD and RV areas. In both regions, majority of the farmers (58 – 67%) use AI to upgrade their stock while 38 – 44% use bulls. Milk yield potential was the most important consideration when purchasing a heifer or making a cull-cow replacement in both regions. Fertility was however more important for farmers in MD areas. While farmers in the RV region seek information on breed, source and breeders’ reputation, performance and price when making insemination and replacement decisions, those in MD areas only seek for price and source of the stock. Per day of productive life, the estimated net margins for heifer progeny was higher (p = 0.000) for AI progenies (Ksh 132.03+ 11.14) than for bull progenies (Ksh 66.43+2.83) while net margins for heifer progenies (Ksh 77.92 + 6.80) was comparable (p = 0.092) to that from cullcow progenies (Ksh 63.48 + 5.33). Results demonstratedifferences in breeding decisions between MD and RV areas and that AI is more beneficial than a bull, and that herd replacement with heifers result in comparable benefits with those from cull-cows under smallholder dairy breeding circumstances.