| Summary: | This paper reviews current thinking on the role of informal agribusiness in pro-poor development, and reports on the example of a recent dairy development project (the Smallholder Dairy Project) in Kenya. The project featured collaborative and participatory research, along with training and certification in milk handling practices as a practical mechanism optimizing milk quality and addressing regulatory barriers. It also targeted and helped achieve policy change, which enabled wider piloting of the training and certification activities incorporating a business development service approach by national authorities. Substantial welfare gains were achieved, as demonstrated in a recent impact assessment reviewed in the current paper. Current extensions of the project are described, and subsequent work outlined. Coherence with received wisdom is discussed along with future research topics.
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