PHD-Department of Agribusiness Management and Trade (AMT)

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Browsing PHD-Department of Agribusiness Management and Trade (AMT) by Subject "Kenya"

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    Economic Analysis of Environmental Conditional Credit as Incentive for Soil and Water Managemnt in Sasumua Sub-Watershed, Nyandarua County, Kenya
    (Kenyatta University, 2022) Ngigi, Obadiah Hinga; Ibrahim Macharia Ndegwa; Eric Kiprotich Bett
    This study used action research to assess demand for environmental conditional credit as an incentive for soil and water conservation. Credit amounts were incremental with decreasing interest rates with conditions of soil and water conservation practices. The study focused on 325 smallholder farmers as the treatment group and 60 smallholder farmers as a control group for three years period. Double bounded logit model was used to estimate the farmers‘ demand while Difference in Differences method (DiD) was used to assess the impact of the environmental conditional credit on smallholders. Primary data was analyzed using STATA. Results indicated that there is demand for environmental conditional credit among smallholders. Results showed that age, education level, household income, farmer‘s perception on amount of credit to borrow and collateral were found significant in influencing farmer‘s willingness to borrow environmental conditional likelihood. Environmental conditional credit was also observed to have overall positive short-and-long term impacts on farmer‘s capital assets (natural, financial human, physical, and social). The study also concludes that credit is a strong behavioral changes incentive towards natural resources management and a livelihood improvement when well designed. The study recommends for establishment of conditional revolving community fund directed to natural resources management, provision of tax breaks for financial institutions providing loans, which improve ecosystem-based adaptation and government creating funds for the purposes of environmental lending.
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    Effects of Supply Chain Management Practices on Competitive Advantage and Organizational Performance of the Dairy Processing Firms in Kenya
    (Kenyatta University, 2021) Wainaina, Charles Maina; Prof. Bernard K. Njehia; Eric Kiprotich Bett
    Under capacity, utilization has profound effects on the efficiency, flexibility and responsiveness of the dairy processing firms in Kenya. Further, under capacity utilization has negatively impacted the competitiveness (cost/price, quality and delivery dependability) of processed dairy products from the Kenyan processing firms in local and regional markets. There is a need to promote globally competitive and high performing dairy processing firms in Kenya. Thus, this study aimed to analyse the effects of SCM practices (supplier development, logistics management practices, CRM, ICT, and strategic sourcing) on the competitive advantage (CA) (quality, cost, delivery dependability) and OP (efficiency, flexibility and responsiveness) in the dairy processing firms in Kenya. Specifically, the study analysed the effects of SCM practices on the organisational performance in the dairy processing firms: Examine the effects of SCM practices on the CA in the dairy processing firms in Kenya: Determine the effects of CA on the organisational performance in Kenya: Evaluate the mediation role of CA in the relationship between organisational performance. The study's conceptual framework was hinged on the resource-based view (RBV) theory of a firm that links SCM practices with a high competitive advantage and enhanced organisational performance. Consequently, this study conceptualized supply chain management (SCM) practices (Supplier development, strategic sourcing, logistics management, ICT and CRM) as valuable resources that can drive competitive advantage and organisational performance of the dairy processing firms in Kenya. Structural equation modeling (SEM) techniques were applied to examine the relationships among the study variables. Additionally, multiple linear regression techniques were used to establish individual independent variables' contribution to dependent variables. A census survey was undertaken targeting 150 milk processing firms licensed by the Kenya Bureau of Standards (KEBS). The survey instruments' validity and reliability were examined through a pilot study and confirmatory factor analysis (CFA). Data reduction and the constructs' underlying structure were examined with exploratory factor analysis (EFA). Statistical Package for Social Sciences (SPSS9) version 20 and analysis of moment structure (AMOS) version 25 software were used for data analysis. The results revealed that SCM practices (supplier development practices, logistics management practices, CRM practices, ICT practices and strategic sourcing practices) significantly predicted both organisational performance B = 0.96, 95% CI [0.95, 0.98], and competitive advantage B = 0.95, 95% CI [0.93, 0.97]. Additionally, competitive advantage significantly predicted organizational performance, B = 0.98, 95% CI [0.97, 0.99]. Moreover, the results confirmed that competitive advantage has a mediating role in the relationship between SCM practices and organisational performance. In conclusion, SCM practices first generate a competitive advantage and, in turn, the competitive advantage enhance organizational performance. Based on these results, managers should consider adopting effective SCM practices to secure competitive advantage and enhance their companies' organisational performance. Moreover, policies should promote the adoption of SCM practices by the processing firms. Academically, this study enriches the literature in SCM practices and provides a conceptual framework for understanding the relationship between SCM practices, CA and organisational performance in Kenya's dairy processing firms.
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    Impact of Improved Sorghum Varieties on Poverty Reduction among Rural Farming Households in Tharaka Nithi County, Kenya
    (Kenyatta University, 2021) Mwangi, Backson Mutonya; Ibrahim Macharia Ndegwa; Eric Kiprotich Bett
    Poverty alleviation and attainment of food security are among the major concerns facing majority of households in arid and semi-arid land areas of Kenya. The Government of Kenya in partnership with other sector stakeholders have invested heavily in the development and promotion of suitable high yielding improved sorghum varieties that are less susceptible to climate change, pests and diseases. Over the years, sorghum demand has outstripped supply. The deficit supply gap keeps expanding and this trend is unexpected since farmers have been assured of a market and price through forward delivery contracts. The interventions are intended to reduce poverty among adopting households. However, the impact of the interventions is not clear and has not been empirically established. In response, this study formulated three specific objectives where the first aimed to assess the determinants of adoption, intensity of use and speed of uptake of improved sorghum varieties. The second and third attempted to evaluate the profit efficiency and estimate the impact of improved sorghum varieties on poverty reduction respectively. Cross-sectional research design was used and primary data were collected from a sample size of 452 households using a structured questionnaire. Further, focus group discussions and key informant interviews were also conducted. Data were analyzed using Double Hurdle and Duration Analysis models for the first objective. To answer the second objective, Cobb-Douglas Stochastic Profit Frontier was used. Furthermore, 3 models namely; Propensity Score Matching, Inverse Probability Weighted Regression Adjustment and Endogenous Switching Regression models were used to answer the third objective related to impact of improved sorghum varieties on poverty reduction. Findings generated by Double Hurdle and Duration Analysis models indicated that determinants of the three adoption decisions are not necessarily the same. While many variable coefficients depicted expected a priori, distance to the nearest agricultural offices and intensity of use of improved sorghum varieties depicted unexpected positive a priori indicating possible use of home saved seeds. Further, access to agricultural credit returned unexpected negative a priori for both intensity of use and speed of adopting improved sorghum varieties’ decisions. On the other hand, results generated by Cobb-Douglas Stochastic Profit Frontier showed a wide range of profit efficiency from 0.12 to 0.96 for the worst and best sorghum farmer, respectively, with a mean of 0.17. Average treatment effects results generated by the 3 impact models indicated a positive significant difference in daily consumption expenditure per adult equivalent of between USD 0.09 to 0.21. Further, counterfactual results generated by Endogenous Switching Regression model showed that, non-adopters would have increased their consumption expenditure per adult equivalent by on average USD 0.96 daily had they decided to adopt. Therefore, adoption-stimulating policies that target to raise resource endowment of households, improve access to extension service and rural infrastructure need to be implemented. Further, this study advocates for incentive-based policies aimed at widening agro-dealer networks mainly directed to County Government to consider reducing certifications such as trade permits. Additionally, policies targeting to reduce credit providers’ cost of doing business and increase their lending appetite such as use of technology, business champions and guarantee schemes should be developed.
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    Profitability and technical efficiency analysis of pigeon pea production in Machakos County, Kenya
    (Kenyatta University, 2023) Ngiri, Stephanina Makena
    Pigeon pea is a drought-tolerant crop mainly grown by small-scale growers in arid and semi-arid regions mostly for income generation and enhancing food security. Pigeon pea is a very essential crop, particularly in destinations accustomed to drought. Nevertheless, its production remains low. As is with other small holder farmers, pigeon pea producers are often faced with resource-use inefficiency and high costs of inputs in production implying that the proper and efficient allocation of resources is vital to guarantee pigeon pea farmers attainment of additional benefits from their input. Hence, this study aimed at estimating the profit and technical efficiency, assessing profitability and examining factors influencing profit and technical efficiency of pigeon pea production in Machakos County, Kenya. The sample size was 346 respondents targeting pigeon pea farming households’ population. This study relied on primary data collected using structured questionnaire administered to the farmers. Machakos County was purposively selected for the study. The inefficiency effect model and a Cobb-Douglas stochastic frontier production analysis method were utilized to estimate profit and technical efficiency and determine the factors that determine pigeon pea farmers' efficiency. Furthermore, thorough evaluation of profit level was made possible by gross margin analysis. According to the pigeon pea gross margin analysis, pigeon pea farmers in Machakos County had a gross margin of Kshs 3470.60 per acre. The sample pigeon pea farms had profit efficiency levels ranging from 0.11 to 0.9, while their technical efficiency levels ranged from 0.09 to 0.86, according to the findings. The estimated mean level of technical efficiency of the sample farmers, which was approximately 59%, demonstrates the likelihood of increasing the quantity of pigeon pea yield by 41%. Farmers can only achieve this by effectively utilizing the resources at their disposal. On the other hand, mean profit efficiency was 44% implying that there exists an opportunity to increase profit levels by 56% when farmers’ allocative and technical efficiencies are improved. Land size, seeds and labour significantly influenced profits whereas farm size, quantity of seeds, manure and labor significantly determined pigeon pea output. The inefficiency parameter and the stochastic production frontier model were used to calculate the factors that influence efficiency where; farming experience, education, off-farm income, and access to credit all had a positive influence on technical efficiency. Contrarily, the technical efficiency of pigeon pea production was negatively influenced by sex, age, the occupation of the household head, and household size. Profit efficiency was positively influenced by education, proximity to the market, and marketing information, whereas age, occupation, and group membership had a significant and negative impact. In order to assist farmers in making sound decisions regarding the marketing of their produce, strategies that make use of current market information are recommended. It was also recommended to devise strategies for making certified planting seeds available, not only to boost productivity but also production efficiency. Lastly, effective extension services and programs should be developed by the appropriate organizations to improve farmers' capacity to increase pigeon pea productivity.