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This is an intensive 4.5-day program for a small number of high-level government officials and business leaders, exploring how government can encourage and enable the private sector to play a larger role in economic growth and development. The process includes small team interactions, with case studies drawn from Asia, Africa and Latin America. Major themes are 1) Inherent Attributes and Challenges of Public Bureaucracies 2) Providing Public Goods 3) Bypassing Bureaucratic Obstacles, and 4) Facilitating Investment & Improving Private Sector Performance. This program is designed to reinforce and illustrate three critically important hypotheses about the role of public policy in private sector development.


Case studies for this course are available here.  

Strathmore Business School

Nairobi, Kenya

Workshops
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This is a four-and-a-half-day intensive program for a small number of mid- and high-level government officials and business leaders, exploring how government can encourage and enable the private sector to play a larger, more constructive role as a force for economic growth and development. The process includes small team interactions, with case studies drawn from Asia, Africa and Latin America. Major themes are 1) Industry promotion 2) Investment promotion 3) Public private partnerships in infrastructure, and 4) Access to finance. This program is designed to reinforce and illustrate three critically important hypotheses about the role of public policy in private sector development.


Case studies for this course are available here.  

Strathmore Business School

Nairobi, Kenya

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A new statistical model developed by Stanford researcher Bill Burke helps identify barriers that keep farmers in Kenya from participating in the dairy industry. Results published in the American Journal of Agricultural Economics suggest that better technology, infrastructure, and access to markets may lead more people to take up dairy farming, which could improve rural food security and livelihoods.
 

Growing the dairy sector

Kenya’s dairy farms house 3.4 million cows, about 85 percent of all dairy cattle in East Africa. Yet within Kenya, the popularity of dairy products has risen steadily in recent years, and in 2006 the country became a net importer as demand outpaced supply.

Small family farms contribute the majority of Kenya’s dairy output, in addition to providing many rural jobs. The government of Kenya has targeted small-scale dairy operations as a key sector for boosting both domestic food supply and rural incomes.

 

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“A new government policy could aim to do three things,” said lead author Dr. Bill Burke, a research scholar at the Center on Food Security and the Environment at Stanford. “First, to increase the number of farmers who produce dairy, second, increase the number of those producers that participate in the dairy market, and third, to increase each farmer’s productivity and sellable surplus. And to design a good policy, you need good data and good analysis.”

 

Previous studies fall short

Previous studies of the Kenyan dairy market rely on a “double hurdle” model, a type of statistical analysis that measures two things: why producers become net buyers versus net sellers of a certain product, and how much of that product they ultimately buy or sell.

But these models assume that all farmers produce the same product, which is not the case in the dairy sector, said Burke.

 

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Dairy farming is labor intensive and has high overhead costs. Farmers without access to cold storage facilities, or without a nearby place to sell their produce, risk losing their inventory to spoilage. Even more risk comes from the fact that the weather and the price of cattle feed can both change suddenly.

“Dairy farming isn’t like growing rice or corn. It is expensive, specialized and risky, so not all farmers do it,” said Burke. “If we really want to understand how to grow the Kenyan dairy sector, we need to understand why some farmers choose to produce dairy in the first place, and why others don’t.”

 

A new level of analysis 

To better understand why some farmers participate in the dairy market, Burke and his co-authors, Robert Myers and Thom Jayne from Michigan State University, used data from 1,275 farming households collected by staff at the Tegemeo Institute of Agricultural Policy and Development, who visited each home four times between 1997 and 2007.

The team then designed a model to analyze market participation among farmers. They developed a new “triple hurdle” model, adding a new level of analysis to the double hurdle model that allowed them to identify the factors that influence some farmers and not others to produce dairy.  

 

To produce or not produce?

The team’s triple hurdle model offered a clear advantage over previous studies. “The new model results are significantly different than if we had used a double hurdle approach, and the magnitude of our estimates are a statistically better fit to the data,” said Burke. “It provided us with a more nuanced understanding of how policy can influence dairy supply.”

Burke’s team found that farmers were more likely to be dairy producers the wealthier they were in terms of land, household assets and credit. Farmers were also more likely to join the dairy sector when they had access to improved technology such as specially-bred “grade” dairy cows and “zero grazing” systems for cattle feeding. Another important factor was the presence of commercial dairy processors and informal traders, because they provided farmers with more certainty that their produce would reach buyers.

 

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These same factors – wealth, technology, and marketing channels - helped determine the market position of a dairy producer: whether they were net sellers or net buyers of dairy. Infrastructure also played an important role. Producers were more likely to be net sellers when they had a formal education and nearby access to electricity and drivable roads.

“These data, and the new insights from our triple hurdle model, suggest that market channels are important incentives for farmers to participate in dairy production,” said Burke. “But we also see a clear case for increasing government investments in infrastructure like roads, rural electrification, and education. We hope our research will inform the government of Kenya as they design a new policy approach to increase dairy farmer participation and productivity.”

 

CONTACT

Dr. Bill Burke: burkewi2@stanford.edu, (650) 724-1290

Laura Seaman, Communications Manager: (650) 723-4920

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This study identifies the factors associated with smallholder farm households that have risen out of poverty or descended into poverty between 1997 and 2007 in Kenya. The study uses data from a nationwide balanced panel of 1,275 households and data from detailed retrospective ‘life history’ survey of 84 households that had experienced either an appreciable improvement or decline in their asset wealth over the 10-year panel period. The results indicate that household welfare dynamics are associated with a disparate set of idiosyncratic and unexpected shocks, such as death and chronic illness, demographic factors, proximity to infrastructural facilities, as well as intergenerational wealth transfers.

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The Journal of Development Studies
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Hunger touches the lives of people throughout the world, from the affluent Bay Area to the most impoverished regions of rural Africa. Food security – the availability of plentiful, nutritious, and affordable food – is a pressing issue for rich and poor countries alike as the world population moves toward 9 billion by mid-century.

In her new book The Evolving Sphere of Food Security (Oxford University Press, August), Professor Rosamond Naylor takes a holistic approach to the question of how to feed the world. Naylor, a professor of environmental earth system science and director of the Center on Food Security and the Environment (FSE), convened 18 colleagues from across Stanford’s diverse disciplines to shed light on the interdependent issues that affect global food security.

Throughout its 14 chapters, and a foreword by former United Nations Secretary-General Kofi Annan, the book takes up two important questions: How does the challenge of achieving food security change as countries develop economically? And how do food and agriculture policies in one country affect nutrition, food access, natural resources and national security in other countries?

Collaboration across disciplines

Naylor, who edited the volume and co-authored several chapters, explained that The Evolving Sphere of Food Security is the first book of its kind to engage faculty and scholars from across Stanford’s campus on issues of global hunger.

Professor Rosamond Naylor

“This book grew out of a recognition by Stanford scholars that food security is tied to security of many other kinds,” said Naylor, who is also William Wrigley Senior Fellow at the Freeman Spogli Institute for International Studies and the Stanford Woods Institute for the Environment. “Food security has clear connections with energy, water, health, the environment and national security, and you can’t tackle just one of those pieces.”

Stanford has a long history of fostering cross-disciplinary work on global issues. It is in this spirit that the idea for the book was born, Naylor said. The book weaves together the expertise of authors from the fields of medicine, political science, engineering, law, economics and climate science.

“Stanford was the ideal place for this project. A book like this exemplifies how collaborative, interdisciplinary research can be greater than the sum of its parts,” Naylor said. “We have painted a much more inclusive picture of food security than if we had approached these questions from only one discipline.”

Rooted in field research

Another unique feature of the book is that each author’s insights are shaped by years of hands-on research and policymaking experience around the world.

Several authors, for example, have been instrumental in shaping U.S. and global food policy for decades. Walter Falcon, professor emeritus of economics and the deputy director of FSE, traces his career as an agricultural economics advisor to the Indonesian government, where he witnessed the country’s dramatic improvements in combating hunger and poverty since the 1960s.

Political science professor Stephen Stedman recounts his experience as a security policy advisor to the United Nations during the 2000s. Recognizing that food insecurity can exacerbate civil conflict, weaken governments and threaten international stability, Stedman worked to integrate food security into traditional security agendas.

Other authors have spent many years working in East Asia, Africa, South America, the Middle East and Europe. As a whole, said Naylor, the team has conducted well over a hundred years’ worth of field research all over the world.

Challenges evolve as countries develop

A recurring theme throughout the book – also reflected in its title – is the evolving nature of the food security challenges countries face as they move through stages of economic growth. At low levels of development, countries struggle to meet people’s basic needs. For example, Naylor’s chapter on health, co-authored with Eran Bendavid (medicine), Jenna Davis and Amy Pickering (civil and environmental engineering), describes a recent study showing that poor nutrition and rampant disease in rural Kenya is closely tied to contaminated, untreated drinking water. Addressing these essential health and sanitation issues is a key first step toward food security for the poorest countries.

As nations rise above the bottom rungs of development, they encounter new challenges. Scott Rozelle, director of the Rural Education Action Program, warns that middle income countries like China now face a “second food security crisis” of widespread micronutrient deficiency. Recent rapid economic and agricultural advancements have largely solved the problem of supplying sufficient calories. But this progress masks what Rozelle describes as “hidden hunger,” or a lack of vitamins and minerals that impedes kids’ school performance and could slow China’s long-term growth. Even in rich countries like the U.S., said Naylor, malnutrition can be a drag on educational and economic performance.

Developed countries face other unique tradeoffs in the use of resources for food production. In his chapter on water institutions, Buzz Thompson, professor of law and co-director of the Woods Institute, explains that conflicts over water increase between smallholder and industrial users as countries develop. Eric Lambin, professor of environmental earth system science, and Ximena Rueda, research associate in earth sciences, offer the paradox that as countries grow wealthier, changing patterns of agricultural land use may actually worsen food security by fueling the spread of obesity and diabetes.

At its core, said Naylor, The Evolving Sphere of Food Security is about more than economic and policy trends. “The book puts a human face to food security, because hunger is an intensely human experience,” she said. “This book tells an integrated story about people’s lives, and how they are shaped by resource use and the policy process around global food security.”

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One Ph.D. candidate and two undergraduates from Stanford have won competitive fellowships to study global food security issues.

Bourlaug Fellowship in Global Food Security

Katrina ole-MoiYoi, a doctoral candidate in Environment and Resources at the School of Earth Sciences, has received the U.S. Bourlaug Fellowship in Global Food Security, a competitive graduate research grant funded by the U.S. Agency for International Development (USAID) and administered by Purdue University.

The grant will support Ms. Ole-MoiYoi’s ongoing research with FSE director Roz Naylor on sustainable aquaculture, including the role of government subsidies in the growth of the Kenyan aquaculture industry. As a fellowship recipient, ole-MoiYoi will also be matched with a mentor from a leading international agricultural research institute.

Cargill Global Scholarship

Two Stanford undergraduates were among the recipient of the 2014-15 Cargill Global Scholarship. Awarded to only 10 U.S. students annually, the scholarship recognizes high academic performance and leadership potential, and is designed to develop the next generation of leaders in the field of food, agriculture and risk management.

The Stanford recipients are Mackenzie Yaryura, a double major in journalism and political science, and Darren Handoko, a chemical engineering major. As scholarship recipients, Ms. Yaryura and Mr. Handok will also participate in leadership development workshops, networking events, and one-on-one mentoring with leaders of Cargill.

Ms. Yaryura, whose interest in food security grew out of her global travels and a Stanford course on "Food and Security" taught by Roz Naylor and Stephen Stedman, plans to study public policy with a focus on education. "I am interested in exploring creative ways to empower communities to implement education on topics that address their needs - such as public health, agricultural methods, nutrition, and vocational training," she said. "The scholarship is a fantastic opportunity to be connected with diverse people with a similar goal of alleviating food security issues," she said. "I think it is a great idea to have someone that is eager to share knowledge and advice, and willing to work through issues with you as they come up."

The Cargill Global Scholars Program is administered by the Institute of International Education on behalf of Cargill, a global producer and marketer of food, agriculture, financial and industrial products and services. 

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