An analysis of indigenous chicken marketing efficiency and market participation among producers in Makueni County- Kenya
Ayieko, David Michael Ochieng
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The indigenous chicken Gallus domesticus production is an important agricultural activity in many households in Kenya. Despite its importance, little research has been carried to enhance its productivity unlike other farm enterprises. The producers from Makueni are constrained in their participation in the indigenous chicken high value markets .Therefore, the objective of this study was to analyze the marketing efficiency of the indigenous chicken marketing channels in Makueni, determine the profitability of indigenous chicken to producers in Makueni and to determine the factors that have an effect on participation of producers from Makueni in the high value markets. A random sampling was used to sample 130 households from Makueni County and 66 traders from indigenous chicken markets in Makueni County. The Data used in this study was collected by the use of semi structured questionnaires, with additional information from key informant interviews and focus group discussion. This data was then analysed using Stata11 and Excel software. The SCP (structure-conduct-performance) approach coupled with the shepherd index, Gross margin analysis and Heckman two stage models were used to analyze the marketing efficiency, determine the profitability of indigenous chicken to producers and identify factors that have an effect on the high value markets participation of producers respectively. The results showed that the indigenous chicken markets had a concentration ratio (CR4) of 41% and a Herfindahl Hirschman index (HHI) of 1087.The 8 marketing channels identified had an average marketing efficiency of 2.29. The main constraints included: price fluctuations, inadequate access to credit and information, inconsistent supply, theft and lack of storage facilities. The producers got a gross margin of Ksh.8455 per year. Apart from the age of the household head, which had a negative effect on the producer decision to participate in indigenous chicken high value markets, processing, education level of household head, the farmer group membership status, the flock size and region all had a positive and significant effect decision to participate in indigenous chicken high value markets. On the other hand, the family size, the type of indigenous chicken, experience in selling indigenous chicken and the flock size all had a significant and positive effect on the number of indigenous chicken sold. However the age of the household head had a negative effect on the number of indigenous chicken sold. Therefore it is recommended that contract models should be used to improve the marketing efficiency. Secondly, the producers should use collective marketing to enhance their profits. Finally to increase the participation of the producers in the high value markets, the Government policy framework must focus on improving indigenous production and marketing in Makueni County.