Efficiency of agrifood marketing systems in Kenya: the case study of macadamia nuts in the central Kenya highlands
Murioga, Wilfred M
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The objective of this study was to analyse the marketing barriers in the efficiency macadamia marketing systems that affect the market efficiency of agrifood industry, the case study of macadamia nuts in the central highlands Kenya. This was achieved by analysing and revealing strengths and weaknesses of policy makers deliberating on corrective measures, challenges and opportunities that facilitate the developments of collaborative relationships in the industry. The study also looked at Value chain analysis used for promotion of enterprise development, Enhancement of food quality and safety. The coordinated linkages among the five market channels, which were identified as farmers, middlemen, processors, Retailers and the consumers were used in the case study. The focus of value chain was on the analysis of the organisation and performance of the macadamia sector as a whole and not on any particular macadamia level of chain within the sector. To engage in the research on the efficiency of agrifood marketing value chain systems, practitioners face different constraints represented by human financial and time resources available to conduct the analysis. Therefore, the efficiency systems analysis followed a broader and general orientation approach which can be adapted in analysing the agrifood sector. The analysis looked at he Conduct of firms and long term strategies, pricing policies and advertising policies that in turn would define performances indicated by criteria that include operational efficiency, technical efficiency and financial efficiency in resource allocation. The systems approach takes into consideration properties such as interdependency, feedback and feed forward systems and synergy which are particularly relevant for analysis of agrifood chains. To measure the efficiency of agrifood marketing systems a research on macadamia nuts was carried in the five counties in central Kenya Highlands. Five independent variables, market integration, quality control systems, price control systems, management organisational structures and margins were used as indicators of efficiency which reflected a very low positive contribution on market efficiency.