CHAPTER 2 LITERATURE REVIEW 2

CHAPTER 2
LITERATURE REVIEW

2.1 Introduction
This chapter is a chapter that seeks to give a literature review of the organizational structures and strategies that are in place or to be initiated. The chapter will bring together the views of other scholars that have taken this research. The chapter will present the theoretical review, empirical review, conceptual framework and review of research hypothesis
2.2 Theoretical review
A literature review surveys books, scholarly articles, and any other sources relevant to a particular issue, area of research, or theory, and by so doing, provides a description, summary, and critical evaluation of these works in relation to the research problem being investigated (Fink, Arlene, 2014). The focus of this study is to assess the factors affecting the production of dairy production in Zimbabwe. It will be based on the Production theory and theory of farm diversification.
2.2.1 Production Theory
Production is defined as an activity that results in the creation of goods and services for the satisfaction of human wants Jorgenson et al. (2014). According to Adam Smith’s theory of economies, production is the conversion of inputs into outputs. Production therefore differs from manufacturing. Production is the use of resources to produce products that can be exchanged rather at a market. Production is measured as rate of output per period. According to the production theory, Adam Smith refers to inputs or resources as factors of production which is raw material, machinery, labor service, capital good land and enterprise.
Marginal products are defined as the change in total product that is caused by or that follow the addition or subtraction of the marginal unit of the factor used in production process. It is
therefore important to note that marginal productivity theory of distribution claims that in a free markets economy the demand for a factor of production will depend on marginal products.

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2.2.2 Theory of Farm Diversification
According to Johnson et al (2008) diversification is a strategy that takes an organization away from both its existing market and its existing product. Farm diversification may as well relate to exploiting of the income generating projects that will support the farm household (Boswah and MCele, 2009).
According to (Met lwee et al, 2006, Turner et al 2003; Defra 2010a), farm diversification has become a way to achieve resilience for farmers and a way to survive in the field which has proven to be challenging to maintain survival. It is also important to note that farm diversifications have proven to be unsuccessful in some circumstances. The theory of farm diversifications depends very much on research for better understanding and improvement of rate of success. Typical measurers include annual sales, turnover, market share, growth in output, number of employees, added value, value of the business (Matthews ; Shulman, 2005). It is apparent, therefore, that the success of diversification is determined by the measures applied and that this is dependent on business objectives ( (Mburu, 2006)
Cash flow and profitability are some measures which might as well assist in success of the theory of farm diversifications. According to (Clark, 2009 ; Turner et al. 2003) there are also farm related measures which assist such as reduced dependence on government agricultural interventions, more stable income, satisfied customers and personal satisfaction. Success of farm diversification is also based on resources such as buildings, finances, human resources and machinery.
Tangible resources are the resources which are physical, these include the land of the farm, the vehicles and the buildings. These resources appear on the company balance sheet and their values deteriorate over time (Matthews ; Shulman, 2005). Intangible resources include production, marketing and manufacturing capabilities, corporate reputation and corporate culture (G.N Mburu, 2006). While classifying resources as either tangible or intangible is useful it also has its own limitations. One of the most important resources of any business is its employees and especially their technical/practical know how, local knowledge or hand-on.

2.3 Empirical Review
Empirical review is a way of gaining knowledge by means of direct and indirect observation or experience (, Campbell, D. T. ; Stanley, J. C., 1963). Players in dairy production are faced by a variant of challenges and multiple risk which results in high cost of production and low average production. Some of the risks are fluctuating price of milk and feeding cost (Muriuki et al 2003).

2.3.1 Production Resources in Production of Dairy Products
Dairy production is the conversion of inputs such as milking cows, labor and fodder into output in terms of milk and livestock related. There are certain production technologies which hinder production in the dairy sector for both small scale and large-scale farmers, these technologies include housing facilities for animals, cooling machinery and feed mixing technologies. These very much affect capacity of the famers to produce.
(Kanayo, 2010), defined resources as assets both tangible and intangible used by producers to aid production. Production assets include the physical/tangible which can also be key to value chain. This is so because they improve quality of products (Buxton ; Vorley, 2009).
According to Buxton and Volrey (2009) the value of assets of smallholder farmers and what they have access to is an important aspect as this assists in assessing their ability to benefit from formalized markets and therefore the nature of value chain interventions.

Assets can be viewed from three prospects which are,
1. Identification of pre-existing assets
2. Understanding separation of available assets and those required for achievement of success.
3. Understanding how assets may show level of poverty.
Identification of pre-existing assets assists in evaluation of the likelihood of a producer having benefit from a trading opportunity that would have risen. Understanding the gap that will be separating required and available assets helps to design the strategy to be used to counter problems and hence bring about solutions. Lastly understanding extent to which assets may reflect level of poverty will assist to show likelihood of growth (Bentley;Parrish, 2004). From the above concept (Roduner, 2005) concluded that as modern farming techniques are prepared to production of cash returns, a proportion of which can be reinvested, donor organization or even government organization may opt to fill in the asset gap to assist the smallholders commence the cycle.

2.3.1.1 Dairy Breeds
Breeds in dairy production play a pivotal role as the different dairy breeds differ in the quantities and qualities of milk they produce. In Zimbabwe, the dominant breeds are the Holstein, Jersey and Ayrshire.
Table 3 EXOTIC DAIRY BREEDS REARED IN ZIMBABWE AND THEIR QUALITIES
BREED OF COW TOTAL AVERAGE MILK PRODUCTION (kg/lactation of 305days) BUTTERFAT CONTENT (%)per sample TOTAL PROTEIN CONTENT (%)per sample
HOLSTEIN 12.700kg 3.6% 3.2%
JERSEY 7.260kg 4.9% 3.7%
AYRSHIRE 7.711kg 3.9% 3.3%

For the Holstein breed ,figures for milk output range up to 28,000lbs. /12,700kg (~3260 gallons) per cycle, with 2.5-3.6% butterfat, 3.2% total protein. (Saunders, 1921) ,whereas for the Jersey breed relatively large amounts of milk- on average, 16,000lbs./7,260kg (~1860 gallons) per cycle, with a high butterfat content of 4.9%, total protein 3.7% and for the Ayrshire Average output is 17,000lbs./7,711kg (~2000 gallons) of milk per 305 day-cycle/year, with 3.9% butterfat, 3.3% total protein. From this information it is quite clear that analyses on basis of quantity of production will favor the use of the Holstein which is highest at 12,700kg per cycle and in terms of quality which is mainly determined by butterfat, the jersey is the most favorable at 4, 9 %. This therefore plays a part in overall production as there may be need to consider availability and affordability of these breeds to the farmers at all scales of production.

2.3.1.2 Cost of inputs
It is important to put into consideration the high cost of other resources of production involved in production of the final product, which is milk. Dairy animals require a variant of medication/vaccination chemicals, the regular vaccinations include Bovine Respiratory disease which is injected for prevention 4-6 months and at 12-16months . Other diseases that require vaccination include:
Table 4 COMMON VACCINES FOR DAIRY ANIMALS
Vaccine Age of vaccination
IBR (infectious bovine rhinotracheitis) 4months- 10 months
PI3 (parainfluenza type 3) 4-10months
BVD (bovine virus diarrhea) 4-6 months and 12-16 months
BRSV (bovine respiratory syncytial virus 4-10months
Lumpy Skin
CA (contagious abortion) 5-10months

These can be a burden to any ordinary small holder dairy farmer who depends on funding of the government.

2.3.1.3 Stock feed
Dairy cattle require specified amounts of nutrients that play a role to support various levels of performances by the cows. This means that changes in intake may as well imply an impact in ration formulation. The amount of feed that a dairy cow consumes has high correlation with its nutrient intake. Efforts thus have to be made to maximize feed consumption when feeding the dairy cattle (Kellems ; Church, 1998)
Adequate consumption of water is of importance in maintenance of feed consumption of the dairy cows, feed and water consumption have a correlation. When dairy cattle are put in the position of consuming poor quality water, water and feed consumption will be depressed thereby milk quantity will be suppressed which then affects production. (Dado ; Allen, 1994)
Stock feed also proves to be a burden as it may be classified under operating costs because all animals eat every day and have different feed compositions. Fresh cows, Dry cows, Calves and Heifers all have different feeds types and this may as well contribute to increase in quantity if provided as per requirement.
Feed consumption of a dairy cow changes as its production status changes. Dairy cows consume different amounts of feed at their different stages of lactation and different amounts of feed when they are at their dry periods and not lactating. An increase in milk production of a dairy cow results in an increase in feed consumption. The table below shows how dry consumption increases as body weight and milk production increase matter

Table 5 Dry matter intake in dairy cattle of different weights and milk production rates .Milk production Dry matter intake as percentage of body weight for:
(4% FCM)1 400 kg cow 500 kg cow 600 kg cow 700 kg cow 800 kg cow
(kg/cow/day)
10 2.7 (10.8) 2.4 (12.0) 2.2 (13.2) 2.0(14.0) 1.9(15.2)
(4% FCM)1 400 kg cow 500 kg cow 600 kg cow 700 kg cow 800 kg cow
(kg/cow/day)
20 3.6 (14.4) 3.2 (16.0) 2.9 (17.4) 2.6 (18.2) 2.4 (19.2)
25 4.0 (16.0) 3.5 (17.5) 3.2 (19.2) 2.9 (20.3) 2.7 (21.6)
30 4.4 (17.6) 3.9 (19.5) 3.5 (21.0) 3.2 (22.4) 2.9 (23.2)
35 5.0 (20.0) 4.2 (21.0) 3.7 (22.2) 3.4 (23.8) 3.1 (24.8)
40 5.5 (22.0) 4.6 (23.0) 4.0 (24.0) 3.6 (25.2) 3.3 (26.4)
45 — 5.0 (25.0) 4.3 (25.8) 3.8 (26.5) 3.5 (28.0)
50 — 5.4 (27.0) 4.7 (28.2) 4.1 (28.7) 3.7 (29.6)
55 — — 5.0 (30.0) 4.4 (30.8) 4.0 (32.0)
60 — — 5.4 (32.4) 4.8 (33.6) 4.3 (34.4)
FCM = fat-corrected milk.
Figures in brackets are the daily amounts of dry matter consumed per cow/day in kg.
Source: NRC, 1989.
The table above serves to show the different levels of consumption in relation to different production levels of a cow. For an example dry matter consumption for a 600 kg dry cow that is 40 to 60 days from calving will range from 9 to 12 kg, when that same cow gets to from 10 to 15 days from calving, it will consume 11 to 13 kg of dry matter; rising to 24 to 27 kg when it is producing 45 kg of milk. This shows that from dry to lactating stage, a cow tends to increase in consumption. These are the fluctuations which require intensive feed management as they contribute to marginal increase in quantity of milk produced thereby increasing production in the long run.

2.3.1.4 Artificial insemination
Artificial insemination also increases efficiency in as far as sex determination of offspring is concerned. By use of sexed semen, a farmer is assured of a maximum rate of heifer conceptions. However detection of estrus may result in loss. Detection of heat is often cited as the most costly component and undoubtedly, the major limiting factor to the success of A.I. programs on many dairy farms because it takes trained personnel to efficiently detect heat successfully which reduces rate of loss. Training of personnel is also another constraint as it require finances.
For efficient genetics, there is requirement for artificial insemination which is use of semen (sexed or not) to achieve offspring that favor maximum production. According to SELECT SIRES PVT LTD, sexed semen costs USD$80 which may be a burden some farmers let alone if professional expertise is not available.

2.4 Dairy Production System in Production of Dairy products
Milk production involves several variables. There are many factors affecting milk production mainly breed, type of feeds, farming practices and system (Benin at al , 2003). Small holder dairy farmers are those farmers who have a herd size of 1-10 milking cows per given time, implying that these are farmers who have an average of lactating cows of 1-10 per given time. Medium scale dairy farmers are those farmers where herd sire range from 11 to 40, and large scale dairy farmers are those who have more than 40 milking cows ( (Romney et al, 2004). Milk is a perishable and because of that, without processing, it is difficult to conserve, store and sell.
The regulations that govern processing and quality of milk are uncontrolled and the key issues for milk hygiene are not well described as majority of the small holder farmers sell milk to locals in a bid to avoid loss through perishing of the product as they do not have access to storage facilities. Milk is usually processed into fermented milk as it is easier to store for a longer period and easier to sell in that form.
The increased demand for dairy products in urban areas in many countries has raised consumer awareness about product quality (Barron del Castillo, 1990), including nutritive value and hygiene. In Zimbabwe, the quality of hygiene in milk production at local markets is uncontrolled which results in the lack of knowledge concerning the quality and hygiene of milk as it reaches the consumer.
According to (Vijay ;et al, 2009), both modern private dairy plants and traditional channels prefer suppliers from large farmers who can supply large quantities of milk ranging from 30 000kg/week – 40 000kg/week. This is because large volumes of milk are usually produced by large-scale farmers who have access to monthly veterinary services which ensure high quality of milk free from diseases such as mastitis which increase somatic cell count of the milk thereby compromising its quality. The age of dairy farmers, membership in the locality, form of payment and price paid to farmers, value of milk produced, and level of education of the dairy farmer as an individual and marketing cost influence the dairy farming system plus the milk marketing channel. Channels of large scale and small scale dairy farmers differ in Zimbabwe, small scale farmers are usually associated with selling their milk to individual customer channels whereas large scale farmers are associated with private trader channels, private processors like Dendairy PVT LTD and also co-operatives such as National Dairy Co-operative (NDC) in Zimbabwe which collect in large quantities.

2.5 Conceptual Framework
Conceptual framework is a scheme of concept (variables) which the researcher operationalizes in order to achieve the set objectives. A conceptual framework represents the researcher’s synthesis of literature on how to explain a phenomenon (Patrick, 2015) . A variable is a measure characteristic that assumes different values among subject. Independent variables are variables that a researcher manipulates in order to determine its effect or influence on another variable. The dependent variable attempts to indicate the total influence arising from the influence of the independent variable.

Independent variables Dependent variable

Research Hypothesis
H?1: Production Resources have no significant effect on production of dairy product
H1: Production resources have a significant effect on production of dairy product
Ho2: Dairy Production System has no significant effect on production of dairy product
H3: Dairy production system has a significant effect on production of dairy products

2.6 OPERATION OF VARIABLES

This is a description of the variables and their measurement in relation to meeting the requirements of the objectives of the study.

Table 6 OPERATION OF VARIABLES