Milk Value Chain Development and Market Linkage for Smallholder Dairy Farmers in Kano State

This study examines milk value chain development opportunities and market linkage strategies for smallholder dairy farmers in Kano State, North West Nigeria. Smallholder dairy farming by Fulani pastoralists and settled farmers in peri-urban Kano provides fresh milk to urban consumers, but value chain fragmentation, hygiene quality challenges, and poor market organisation limit both producer returns and consumer access to safe, affordable dairy products. This study uses a value chain analysis approach, mapping milk production, primary collection, processing, and retail stages in Kano's peri-urban dairy supply chain. Data are collected from 80 smallholder dairy producers, 15 milk collectors, 8 processors, and 20 retail outlets. Value addition at each chain stage, marketing margins, quality loss points, and coordination mechanisms are assessed. Market linkage model options are evaluated. Findings reveal that producers receive only 38 percent of final retail price for raw milk, with high marketing margins concentrated in collection and informal processing stages. Quality losses from ambient temperature storage average 22 percent of collected milk by volume due to rapid spoilage. Milk price variability is highest at the farm level, ranging from 200 to 450 naira per litre across seasons. Producers with direct processor contracts receive significantly more stable and higher average prices. The study concludes that market linkage between producer groups and processors is the most impactful value chain intervention. It recommends establishment of milk collection centres with chilling facilities linked to formal processor supply agreements as the priority development investment.

Keywords: milk value chain, smallholder dairy, market linkage, Kano State, dairy development.