Analysis of the Role of Brookside Dairies in Strengthening Integrated Supply Chain and Contract Farming in Kenya

Kenya’s dairy industry remains a cornerstone of agricultural growth and rural livelihood transformation, contributing meaningfully to food security, employment, and household income generation. Within this sector, Brookside Dairies Limited stands out as a dominant private actor that links thousands of smallholder farmers through structured supply chain systems and contract farming arrangements. Despite these achievements, the dairy value chain continues to face persistent challenges including inefficiencies in coordination, weak bargaining positions for producers, gender gaps, and inconsistent quality assurance standards.

This study investigates how Brookside Dairies has shaped Kenya’s integrated supply chain and contract farming landscape, with particular attention to the company’s influence on productivity, farmer welfare, and operational performance. A mixed-methods research design was adopted, drawing on both quantitative and qualitative data collected from 100 respondents—60 women and 40 men—selected from a target population of 150 farmers and supply chain managers affiliated with Brookside. Quantitative findings were analyzed using descriptive and inferential statistical tools to establish relationships between supply chain integration and farm-level outcomes, while qualitative interviews offered deeper insight into managerial practices, gender inclusion, and institutional behavior. The analysis was anchored in four key theories: Supply Chain Integration, Transaction Cost Economics, the Resource-Based View, and Institutional Theory.

Results indicate that Brookside’s integrated supply chain model has improved logistical efficiency, standardized milk quality, and reduced transaction costs. However, weaknesses in contract enforcement, price transparency, and farmer empowerment limit its long-term sustainability. The study concludes that private-sector-driven integration can substantially strengthen Kenya’s dairy value chain when guided by equitable contracting, digital traceability, and inclusive governance. Policy, managerial, and operational reforms are therefore recommended to enhance transparency, promote collaboration, and expand women’s participation—aligning industrial growth with social equity and economic resilience.