Cooperative Creameries Research Articles

Sourcing Strategies and Organizational Performance of Muranga Co-Operative Creameries Kenya

Purpose: The general objective of this study was to establish the influence of sourcing strategies on organizational performance of Murang’a Co-operative Creameries in Kenya. Specifically, the study sought to establish the influence of single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy on organizational performance of Murang’a Co-operative Creameries in Kenya. The theories anchoring the study comprised of Agency theory, Network Theory and Systems Theory.
 Methodology: This study utilized a descriptive research design. The target population comprised of Murang’a Co-operative Creameries where the units of observation comprised of employees from human resource department, quality assurance department, production department, maintenance department, sales department and accounts, finance department in Muranga Co-operative Creameries. A total of 76 employees were targeted in the study. Primary data was utilized in the study and collected using semi structured questionnaire that were administered by drop and pick methods. The research used a mixed approach to data analysis. Descriptive analysis involved use of measure of central tendency and standard deviation as a measure of dispersion. Inferential statistics comprised of both correlation and regression analysis. Statistical Package for Social Sciences (SPSS) version 24.0 was used to generate the statistics. The results of the study were presented in form of tables and figures.
 Findings: The study established that single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy bears a positive and significant influence on organizational performance of Murang’a Co-operative Creameries in Kenya. This is shown by beta values of 0.216, 0.549, 0.406 and 0.315 and significant values of 0.011, 0.000, 0.000 and 0.003 respectively. The results implies that increasing the independent variables with one unit results to increase in the levels of organizational performance of Murang’a Co-operative Creameries with the respective beta units.
 Unique contribution to theory, practice and policy: The study provides recommendation to Murang’a Co-operative Creameries to enhance the levels of sourcing strategies comprising of single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy since the practices positively and significantly influences organizational performance.

A Firm Level Database of Irish Creameries, 1897–1921

We present a microlevel database of Irish cooperative creameries covering the period 1897–1921. The data were hand collected from the annual reports of the Irish Agricultural Organisation Society (IAOS) and contain information from 531 creameries and covering 49 variables. We perform some initial analysis of the data, finding considerable heterogeneity in the productivity of creameries as measured by the milk/butter ratio. We focus on differences between the four historical provinces of Ireland, finding that the south of Ireland (the historical centre of butter production) was on average less productive than the north at the start of the period, although this changes after 1913, when Ulster becomes the least productive province. These results present interesting avenues for future work, given the IAOS’ focus on founding creameries in the north of the island.

A Microlevel Analysis of Danish Dairy Cooperatives: Opportunities for Large Data in Business History

We contribute to the argument for a “new” business history employing a quantitative approach. We illustrate opportunities for new perspectives from this approach using a novel microlevel longitudinal database comprising 131 variables for 1,419 cooperative creameries in Denmark for the period 1898–1945, which we also document and make available to the scholarly community. We present a number of applications of the data, including investigating regional productivity differences, expenditure on fire insurance, and survivorship and reporting biases.

Information Systems Infrastructure and Performance of New Kenya Cooperative Creameries Limited

The performance of significant number of organizations face challenges in achieving their organizational objectives due to the ever-changing technology. Some studies have been conducted that have yielding conflicting findings in regard to whether Information Systems impact positively or negatively on performance of business organizations. The aim of this study was to ascertain the effects of Information Systems (IS) on the performance of New KCC. The study was anchored on four theories; Technology Acceptance Model, Technology-Organization Environment, Information System success Model and Resource Based view. This current research utilized descriptive research design. The study used a target population of 200 employees selected from different departments: finance, logistics, human resource, crates section, sales & marketing, production, and ICT departments. This research employed stratified random sampling to obtain a sample size of 60 employees. The drop-and-pick method was utilized to administer the survey questionnaires used during the research at the New KCC. The results indicated that Information Systems infrastructure (β=0.832; p=0.000), significantly influenced performance of the New KCC respectively. In any organization, computer hardware and software are said to be very crucial organizational assets and should be properly managed appropriately. Specifically, infrastructure relating to hardware, software, and networks could greatly enhance the performance of the new KCC. The study recommends that computer hardware and software are thought to be extremely valuable organizational assets that should be used whenever possible hence firms needs to be fully equipped with well-functioning computers.

The Effects of Availability of Resources on the Implementation of Turnaround Strategy at New Kenya Co-operative Creameries Limited

This study investigates the effect of resources on the implementation of turnaround strategy at New Kenya Co-operative Creameries Ltd (NKCC). This study was guided by the stage and action theory with more emphasizes being given to stage theory. The study adopted a case study research strategy. Data was collected using questionnaires from 43 managers and management employees of New KCC selected from three branches (Nairobi, Limuru and Thika). The data was analysed quantitatively and the findings presented in frequency distribution tables and bar graphs. From the findings, the researcher found out that resources affected the implementation of turnaround strategies. The most important factors related to resources were inadequate training and instruction given to lower level employees; ineffective coordination of implementation activities; low competence, coordination, and commitment among human resources; inadequate leadership and direction provided by departmental manager; delays due to additional costs and instabilities during the process of change and; lack of enough raw material (resources). Interestingly, this study found out that lack of physical resources may not translate to effective implementation of turnaround strategies. There may be sufficient machinery and human resources in the various departments, however, there has to be competent managers to ensure efficient utilize of such resources. In light, it was deduced that there is need to align the physical resources that an organization has with competent human resources so as to effectively realize effective implementation of turnaround strategies. This study recommends that the most important resources to be acquired are competent personnel. This is particularly so since, the various aspects of the implementation of turnaround strategies need such personnel. As such, they should be well trained and suitable to carry out the various tasks needed to ensure that the strategies under their docket are well implemented. NKCC should also ensure that there is modern equipment and funds to facilitate the change management. Budgets should be reviewed regularly so as to ensure presence of adequate resources to sustain the implementation of turnaround strategies.

Factors affecting adoption of technical, organisational and institutional dairy innovations in selected milksheds in Kenya

ABSTRACT Technical dairy innovations (TDI), such as improved cow feeding, health management and genetic improvement, could boost milk production. At the same time, organisational and institutional dairy innovations (OIDI), including group milk sales, feed and credit access, could boost dairy supply chain efficiency. This study examined the TDI adoption determinants and the OIDI adoption intensity. Data were collected from 1146 farmers (410, 382 and 354 in the milksheds of Mukurweini Wakulima Dairy Limited [MWDL], Happy Cow Limited [HCL] and New Kenya Co-operative Creameries [NKCC], respectively) and analysed using a double hurdle model. Access to credit positively influenced the TDI adoption in the three milksheds. Adoption of TDI was influenced by hired employees, dairy records, total dairy cows and household head education. The empirical evidence from the study supports the observation that OIDI adoption intensity is influenced by income, farm size, dairy records, and dairy information access. To boost TDI adoption, the dairy development partners should link cooperative society members with agricultural credit lenders. Additionally, the dissemination of dairy information to farmers by the dairy stakeholders could spur TDI adoption, while providing dairy information and training farmers on dairy record keeping should be promoted to boost TDI and OIDI adoption.

The Influence of Data Management on Market Access by SMEs in Trans Nzoia County, Kenya

Accessing a sustainable market should be a priority for SMEs. It helps to expand their business horizons and get new opportunities and clients. New opportunities promote the urge of SMEs to employ all legally possible means to offer their products and services to the identified markets. As SMEs strive to ensure their products and services reach out to people both locally and internationally, the effective use of ICT, especially handling business data, was a major concern to SMEs in Trans Nzoia County, Kenya. This study aimed to establish the influence of data management on market access by SMEs in Trans Nzoia County. A descriptive research design was used in the study. The target population was 37 SMEs whose respondents were 92 ICT officers, 81 compliance officers, and 77 marketing officers. Data collection was done using interview guides and closed-ended questionnaires. To ensure validity and reliability, pilot-testing of questionnaires was done at Kenya Cooperative Creameries in Elgeiyo Marakwet County. Coded data in SPSS was analyzed quantitatively using descriptive statistics such as mean, percentage, and standard deviation. The qualitative data were analyzed using the thematic technique. Linear regression was used to test the hypothesis of the study. The study established that the decisions made by the SME management did not originate from reliable sources such as business intelligence systems but rather on personal experiences, emotions, and cheap and available options. Through the authorization of their boards, SMEs should employ staff who have adequate skills and experience in managing and analyzing data to provide direction on why certain decisions should be made.

Characterization of dairy innovations in selected milksheds in Kenya using a categorical principal component analysis

To enhance milk quantity and quality which have continued to decrease in Kenya, various stakeholders have intervened through promotion of technical dairy innovations at the farm level including improved cow feeding, health management, promotion of exotic breeds, and milking hygiene. At the milkshed level, stakeholders’ focus has been on organizational innovations, specifically milk sale by farmers through groups. This study sought to characterize dairy innovations that have been adopted by farmers in the milkshed of three milk processors including New Kenya Co-operative Creameries Sotik (NKCC Sotik), Happy Cow Limited (HCL), and Mukurweini Wakulima Dairy Limited (MWDL), representing one state, private, and farmer-owned processor, respectively. Data were collected using a structured questionnaire from a sample of 1146 farmers (410, 382, and 354 in MWDL, HCL, and NKCC Sotik, respectively). A categorical principal components analysis was used to reduce 32 variables into four sets of uncorrelated components. Four categories were identified including principal component (PC) 1 (technical capacity), PC 2 (animal health management), PC 3 (organizational capacity), and PC 4 (milk hygiene). More farmers in the milkshed of MWDL adopted technical and organizational dairy innovations such as use of artificial insemination and milk sale through groups, respectively, than farmers in milkshed of NKCC and HCL. The county governments in the milkshed of HCL and NKCC Sotik need to strengthen cooperative societies to boost adoption of artificial insemination through arrangement in which milk is sold and payment of services offered on credit is settled from milk sale and ensure milk market availability throughout the year.

Butter Sculpture: The History of an Unconventional Medium

With its roots in ancient food molds and table art for Renaissance banquets, butter sculpture in the United States debuted during the centennial and flourished in the first quarter of the twentieth century. As the dairy industry moved from farm to regional cooperative creameries and eventually to national brands, butter sculpture appeared at fairs and expositions. Both amateur and professional sculptors used this unusual medium for busts and portraits, dairy‐related subjects, and models of buildings. The ephemeral nature of the medium and the novelty of food as art drew crowds to exhibits advertising butter as the natural, healthy alternative to oleomargarine.

The Effect of Employee Motivation on Performance among Workers in Kenya: A Case of Kenya Cooperative Creameries Kitale Branch

The Effect of Employee Motivation on Performance among Workers in Kenya: A Case of Kenya Cooperative Creameries Kitale Branch

'Getting to Denmark': The Role of Elites for Development

We explore the role of elites for development and in particular for the spread of cooperative creameries in Denmark in the 1880s, which was a major factor behind that country's rapid economic catch-up. We demonstrate empirically that the location of early proto-modern dairies, so-called hollaenderier, introduced onto traditional landed estates as part of the Holstein System of agriculture by landowning elites from the Duchies of Schleswig and Holstein in the eighteenth century, can explain the location of cooperative creameries in 1890, more than a century later, after controlling for other relevant determinants. We interpret this as evidence that areas close to estates which adopted the Holstein System witnessed a gradual spread of modern ideas from the estates to the peasantry. Moreover, we identify a causal relationship by utilizing the nature of the spread of the Holstein System around Denmark, and the distance to the first estate to introduce it, Sofiendal. These results are supported by evidence from a wealth of contemporary sources and are robust to a variety of alternative specifications.

Not to Nationalise, but to Rationalise? Cooperatives, Leadership and the State in the Irish Dairy Industry 1890–1932

The Irish cooperative movement in the dairy industry was driven from above, first by the philanthropic Irish Agricultural Organisation Society and then by the Irish Free State. Although the early cooperative movement has been linked with constructive unionism, this article highlights important continuities in the approach taken to cooperative creameries by the Irish Free State government in the 1920s. Using the problem of creamery management as a focus, it argues that the movement was unable to deliver on its stated goal of democratic empowerment of farmers. Instead, it was the means through which power was renegotiated between farmers, landlords and the state in the context of two crucial transitional moments.

The Danish agricultural revolution in an energy perspective: a case of development with few domestic energy sources

This article examines the case of Denmark—a country which historically had next to no domestic energy resources—for which new historical energy accounts are presented for the years 1800–1913. It demonstrates that Denmark's take‐off at the end of the nineteenth century was relatively energy dependent. This is related to Denmark's well‐known agricultural transformation and development through the dairy industry, and thus the article complements the literature which argues that expensive energy hindered industrialization, by arguing that similar obstacles would have precluded other countries from a more agriculture‐based growth. The Danish cooperative creameries, which spread throughout the country over the last two decades of the nineteenth century, were dependent on coal. Although Denmark had next to no domestic coal deposits, this article demonstrates that Danish geography allowed cheap availability throughout the country through imports. On top of this it emphasizes that another important source of energy was imported feed for cows.

Restructuring of Irish Dairy Co-operatives since 1950 An example from County Tipperary

The amalgamation and subsequent rationalisation of dairy co-operatives offer an important example of the restructuring the Irish agricultural sector has experienced over the past fifty years. The process also provides indicators of economic and social change at local level over the period. The study focuses on the process of change in the local co-operative creamery in Slieveardagh parish, county Tipperary. during the 1950s and 1960s, before its amalgamation with a dairy cooperative which covered much of the south-east. The expansion of the co-operative over the subsequent two decades, manifested in changes in milk assembly, milk supplier numbers, and social conditions, is also discussed.

Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives

We consider the successful early emergence of cooperative creameries in Denmark in the late nineteenth century within the framework of the “new institutional economics” presented by Oliver Williamson. Previous work focused on the social cohesion of the Danes, but we demonstrate that this was not sufficient for their success. The Danish legal system, which we compare to that of other countries, was also of crucial importance, along with the way in which rules were monitored and enforced. Of particular interest is the Danish cooperatives’ use of contracts, which we explore with evidence from a variety of primary and secondary sources.

Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives

We consider the successful early emergence of cooperative creameries in Denmark in the late nineteenth century within the framework of the ‘new institutional economics’ presented by Williamson (2000). Previous work has focused on the social cohesion of the Danes, but we demonstrate that this was not sufficient for the success. The Danish legal system, which we compare to that of other countries, was also of crucial importance, along with the way in which rules were monitored and enforced. Of particular importance was the Danish cooperatives’ use of contracts, which we explore with evidence from a variety of primary and secondary sources.

Effects of policy change on the dairy production support services within the smallholder dairy farmers in Butere/Mumias and Kakamega districts of Western Kenya

A survey was conducted in Butere/Mumias and Kakamega districts of Western Kenya in 2005 to evaluate the availability of dairy support services following liberalisation of agricultural sector by the Government. A total of 69 and 107 farmers were interviewed in Butere/Mumias and Kakamega districts, respectively. Liberalisation opened up market for raw milk in major urban centres that were previously supplied by processed milk from Kenya cooperative creameries (KCC). Attempts to expand dairy production to capture this market was constrained by a huge deficit of breeding stock with about 53.4% of farmers buying animals from neighbouring districts. Artificial insemination (AI) service was not available when required by 30% of farmers who resorted to use bulls that were within a distance of less than 2 km (71.4%). Farmers using AI moved between 0 and 5 km (38.1%). The private veterinary surgeon served 54% of the farmers and on average there were 2922 and 2087.1 dairy animals for every veterinary surgeons and AI service provider, respectively. The low demand for dairy support services was attributed to lack of high quality dairy animals and capital by the service providers to buy the required equipments and materials. Key words: Smallholder, dairying, support services, liberalisation, Kenya.

The 'Transaction Cost Approach' and the Performance of the Belgian Dairy Co-Operatives Before 1940

We see that Belgian industrial dairy production before World War II lagged the developments of other countries in the same region and of the same size such as Denmark and The Netherlands. The share of home production remained remarkably high, while within the industrial segment the number of private to co-operative creameries was high compared to the more successful countries. We argue that this is no coincidence. Co-operative creameries were better suited to deal with the problems posed by the organisation and technology of dairy production at the time. The lacklustre performance of the Belgian dairy industry was therefore connected to the underdevelopment of the co-operative sector. The co-operative spirit of Belgian farmers suffered due to some historical events such as the large scale introduction of farm cream separators and especially the outbreak of World War I. This erosion of co-operative spirit diminished the attractiveness and binding power of the co-operative creameries.

Butter Cows and Butter Buildings

With its roots in ancient food molds and table art for Renaissance banquets, butter sculpture in the United States debuted during the centennial and flourished in the first quarter of the twentieth century. As the dairy industry moved from farm to regional cooperative creameries and eventually to national brands, butter sculpture appeared at fairs and expositions. Both amateur and professional sculptors used this unusual medium for busts and portraits, dairy‐related subjects, and models of buildings. The ephemeral nature of the medium and the novelty of food as art drew crowds to exhibits advertising butter as the natural, healthy alternative to oleomargarine.

Diffusion of new technology and complementary best practice: A case study

During the late nineteenth century, technologies to measure the quality of the milk in butter production became available, enabling creameries to pay suppliers of raw milk according to quality. Having identified the advantages to the creameries in terms of incentive provision, we demonstrate that the diffusion among the cooperative creameries was relatively slow, particularly relative to other technologies adopted by the same creameries over the same period, with a large number ‘dragging their feet’. We also observe that late adopters often do not choose the most up-to-date technology and that early adopters who later upgrade their technology in many cases do not choose the current best practice. We consider a number of reasons for the observed patterns, which are at odds with the co-operative creameries being seen as technologically ‘savvy’. A proper implementation created both winners and losers among suppliers, and the size of these widened with newer versions of the technology. We show that the slow and inappropriate implementation can be explained by the need to get the technology accepted by a sufficient number of suppliers.