Analysis of factors affecting the profitability of Kenya Cooperative CreameriesEldoret depot.

Abstract

The study sought to determine the factors influencing profitability of KCC Eldoret depot. To attain the purpose the following objectives were formulated; to evaluating how milk storage, processing, marketing and packaging affect the profitability of KCC Eldoret depot. The study used a descriptive survey design, where the target study population was comprised of employees of KCC Eldoret depot. Questionnaire was the main data collection instrument, data was analysed using descriptive statistics and presented using frequency tables and percentages. From the study findings it was established that the dairy farmers sold the milk immediately to avoid spoilage and that those who were near KCC Eldoret milk cooling facility enabled them sell milk from the evening milking and also that milk processing strategies adopted by KCC Eldoret Depot have played a major part in enhancing the profitability of the company. The study established milk marketing strategies adopted by KCC Eldoret Depot are influential in determining the profitability of the companyand that dairy farming was profitable. Based pm the findings from the study it was revealed that that KCC Eldoret depot depends on product packaging strategies so as to make its products perform better in the market and improves its overall profitsThe research findings are important to the dairy farmers, milk processors and milk market players.