Economic development through the dairy sector: analyzing the legal protection frameworks

Abstract

The paper discusses the important role played by the dairy sector in Kenya with respect to economic development from which the economic and social rights can be realised. In doing so the paper defines an elaborate structural framework within which the sector is managed from the level of production of milk to marketing and sale of dairy products. Various laws and policies that govern the sector are highlighted most of which have interventions to the existing challenges that affect the sector. The paper highlights a number of threats to the sector which if not addressed within the given protection frameworks can lead to collapse of the industry. One of the major threats identified is the low price at which milk is sold by the farmer despite there being high consumer prices. Such low returns to the farmer adversely affect the welfare of the affected communities. The paper attributed the problem of low prices to the oligopolistic tendencies in the sector that have resulted in monopolization of prices. Dumping of milk products was also identified as a major threat which has also contributed to low prices of milk to the farmer. The paper recognizes that the elaborate legal protection frameworks in place can be utilized to regulate such restrictive trade practices and further protect the dairy sector which is still developing.