Mailu, Stephen and Wachira, Ann (2009): The influence of prices on market participation decisions of indigenous poultry farmers in four districts of Eastern Province, Kenya. Forthcoming in: Journal of Agriculture and Social Research
Download (179Kb) | Preview
Over 70% of the domesticated birds in Kenya are indigenous chicken (IC) providing meat and table eggs. They are frequently raised through the free range, backyard production system. Small flock sizes are characteristic of this production system and often, sales are mainly at the farmgate. Although IC production possesses enormous potential at livelihood improvement, marketing systems are undefined and variable. The influence of prices on market engagement has frequently been assumed. A study of 68 farmers conducted in Machakos, Kibwezi, Nzaui and Mwala District in 2008 revealed that 70% of all IC sales were conducted at the farmgate while only 19% of the sales were at the local market. This study also investigates the probability of market participation by employing a binary logistic regression model. The results suggests that while farmers complain of poor farm gate prices for indigenous chicken offered by middlemen, low volumes are an important drawback to market participation.
|Item Type:||MPRA Paper|
|Original Title:||The influence of prices on market participation decisions of indigenous poultry farmers in four districts of Eastern Province, Kenya|
|Keywords:||Market; Price; Indigenous chicken; Farm-gate|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C25 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
|Depositing User:||Stephen Mailu|
|Date Deposited:||14. Nov 2010 09:17|
|Last Modified:||13. Feb 2013 01:49|
Abdi, N. (2009) The Role of Agricultural Research in Promoting Efficient Agricultural Production in sub-Saharan Africa: A Stochastic Production Frontier Approach, Unpublished MSc Thesis, McGill University, May, 2009, Montreal, Canada
Abdulai, A. and Birachi, E.A. (2008). Choice of Coordination Mechanism in the Kenyan Fresh Milk Supply Chain. Review of Agricultural Economics 31 (1): 103-121
Akinola, L.A.F. and George, O.S. (2008) Small scale family poultry production as a substantial source of animal protein in selected local government areas in Rivers State. Journal of Agricultural and Social Research 8(2): 14
Alabi, R.A., Esobhawan, A.O., and Aruna, M.B. (2006). Econometric Determination of Contribution of Family Poultry to Women’s Income in Niger-Delta, Nigeria. Journal of Central European Agriculture 7(4): 753-760
Alum, W., Kanzikwera, R., and Sanginga, P. (2007) Demand-driven and Cost Effective Production: What the Farmers Ought to Know. A case of Local Chicken Enterprise in Masindi District-Uganda, AAAE 2007 Conference Proceedings : 205-208
Badubi, S.S., Rakereng, M., and Marumo, M. (2006). Morphological characteristics and Feed Resources for Indigenous Chicken in Botswana. Livestock Research for Rural Development 18, (1) 2006 Retrieved May 3 2009 from http://www.cipav.org/lrrd/lrrd18/1/badu18003.htm
Barnum, H., and Squire L., (1979). A model of an agricultural household: Theory and evidence. Occasional Paper 27. World Bank, Washington, DC, USA.
Bellemare, M.F., and Barrett C.B. (2006). An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia. American Journal of Agricultural Economics 88(2) 324–337
Benabdeljelil, K.1., Arfaoui, T.1., Johnston, P. (2001). Traditional Poultry Farming in Morocco: Livestock Community and Environment. Proceedings of the 10th Conference of the Association of Institutions for Tropical Veterinary Medicine, Copenhagen, Denmark
Blandon, J., Henson, S., and Islam, T. (2009). Marketing Preferences of Small-Scale Farmers in the Context of New Agrifood Systems: A Stated Choice Model. Agribusiness, 25(2): 251–267
Gamba, P., Kariuki, D., Gathigi, B. (2005). Urban Domestic Consumption Patterns for Meat: Trends and Policy Implications Tegemeo Institute of Agricultural Policy and Development Working paper No 17/2005
Gausi, J.C.K., Safalaoh, A.C.L., Banda, J.W., and Ng'ong'ola D.H. (2004). Characterisation of the Smallholder Poultry Marketing Systems in Rural Malawi: A Case Study of Malingunde Extension Planning Area Livestock Research for Rural Development 16 (12)
Gerfin, M. (1996). Parametric and semi-parametric estimation of the binary response model of labour market participation. Journal of Applied Econometrics, 11:321-339
Gondwe, T.N., Wollny, C.B.A., and Kaumbata, W. (2005). Marketing system and channels for scavenging local chickens in Lilongwe, Malawi. Livestock Research for Rural Development 17(art.) #24: Available at http://www.lrrd.org/lrrd17/3/gond17024.htm
Greene, W.H. (2007). Econometric Analysis. Sixth Edition, Upper Saddle River, N.J., Pearson/Prentice Hall
Guèye, E.F. (2001). Marketing of family poultry products in Africa to be improved. World Poultry 17(5): 12-16
Illango, J., Etoori, A., Olupot, H. and Mabonga, J. (2002) Rural Poultry Production in Two Agro-Ecological Zones of Uganda In: Characteristics and parameters of family poultry production in Africa. Results of a FAO/IAEA Co-ordinated Research Programme.IAEA, VIENNA, Austria. pp117-136 [Available online http://www.iaea.org/nafa/d3/public/12-rural-illango.pdf]
Jha, D. and Hojjati, B. (1993). Fertilizer Use on Smallholder Farms in Eastern Province, Zambia Research Report 94, International Food Policy Research Institute, Washington D.C.
Key, N., Sadoulet, E. and de Janvry, A. (2000). Transaction costs and agricultural household supply response. American Journal of Agricultural Economics 82(2):245–259. 15
Kingori, A.M., Tuitoek, J.K., Muiruri, H.K., Wachira, A.M. and Birech, E.K. (2007) Protein Intake of Growing Indigenous Chickens on Free-Range and Their Response to Supplementation International Journal of Poultry Science 6(9): 617-621
Mathuva, J.M. (2005) Value Chain Analysis of the Indigenous Poultry Sub-Sector, Kilifi and Kwale Districts – Kenya, Coastal Rural Support Programme
Menge, E.O., Kosgey, I.S. and Kahi, A.K. (2005) Bio-Economic Model to Support Breeding of Indigenous Chicken in Different Production Systems. International Journal of Poultry Science 4 (11): 827-839
Mlozi, M.R.S., Kakengi, A.V.M., Minga, U.M., Mtambo, A.M. and Olsen, J.E. (2003). Marketing of Free Range Local Chickens in Morogoro and Kilosa Urban markets, Tanzania; Livestock Research for Rural Development 15:2, Retrieved June 8, 2009, from http://www.cipav.org.co/lrrd/2/mlozi152.htm
Montshwe, B.D., Jooste, A., and Alemu, Z.G. (2004). An Econometric Analysis of the Determinants of Market Participation within the South African Small-scale Cattle Sub-Sector, The Agricultural Economics Association of South Africa Conference, http://www.aeasa.org.za/
Munyasi, J.W., Nzioka, M., Kabiru, S.K., Wachira, A., Mwangi, D., Kaguthi, P., Kithome, J. and Muthiani, E.N. (2009). Existing and potential market opportunities for indigenous chicken in greater Machakos and Makueni districts, Paper presented at the APSK symposium Sunset Hotel, Kisumu 22-23 April, 2009
Muthee, A.M (2006). Kenya Livestock Sector Study: An Analysis of Pastoralist Livestock Products Market Value Chains and Potential External Markets for Live Animals and Meat, AU-IBAR &NEPDP, Consultancy report: Deloitte Consulting Ltd.
Nyaga, P. (2007 Re-edited June 2008). Poultry Sector Country Review. FAO Animal Production and Health Division, Emergency Centre for Transboundary Animal Diseases, Socio Economics, Production and Biodiversity Unit, FAO
Nyange, R.K. (2000). Smallholder Poultry Production in Kenya, In G. Pedersen, A. Permin and U.M. Minga (eds) Proceedings of the Workshop on the Possibilities for Smallholder Poultry Projects in Eastern and Southern Africa, Morogoro, Tanzania, 22-25 May 2000
Okitoi, L.O., Udo, H.M.J., Mukisira, E.A., De Jong, R. and Kwakkel, R.P. (2006) Evaluation of low-input interventions for improved productivity of indigenous chickens in Western Kenya. Agricultura Tropica et Subtropica 39(3): 179-182
Sadoulet, E. and de Janvry, A. (1995). Quantitative development policy analysis. John Hopkins University Press, Baltimore, USA.
Schlotzhauer, D.C. (1993). Some issues in using PROC LOGISTIC for binary logistic regression. Observations: The Technical Journal for SAS Software Users. 2(4): 1-12, https://www.ats.ucla.edu/stat/sas/library/ts274.pdf
Singh, I., Squire, L. and Strauss, J. (1986). Agricultural Household Models: Extensions, Applications and Policy. John Hopkins University Press, Baltimore, USA.
So, Y. (1999). A Tutorial on Logistic Regression, SAS Institute Inc., Cary, NC, available for download http://support.sas.com/techsup/technote/ts450.pdf
Sørensen, C. (2007). Indigenous Poultry in Kenya – a Market Approach [Available online http://www.poultry.life.ku.dk/Information_resources/Workshop_proceedings]
Ssewannyana, E., Onyait, A.O., Ogwal, O.J. and Masaba, J. (2006). Strategies for improving the meat and egg productivity of indigenous chickens in Kumi and Apac districts, Uganda Uganda Journal of Agricultural Sciences, 2006, 12(2): 31-35
Uchezuba, D., Moshabele, E., and Digopo, D. (2009). Logistical estimation of the probability of mainstream market participation among small-scale livestock farmers: a case study of the Northern Cape province, Agrekon, 48(2): 171-183
Waithaka, M.M., Nyangaga, J.N., Staal, S.J., Wokabi, A.W., Njubi, D., Muriuki, K.G., Njoroge, L.N., and Wanjohi, P.N. (2002). Characterization of dairy systems in the western Kenya region, SDP Report of Dairy and Crop Characterisation Activities in Western Kenya, MoARD/KARI/ILRI/DfID, December 2002, 72pp