PHD-Department of Agribusiness Management and Trade (AMT)

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Analysis of Factors, Cost-Benefit Analysis and Effects of Value Addition Strategies on Cashew Products Processed in South-East Zone, Nigeria
(2022) Eze, Victor Anayochukwu; Ibrahim Macharia; Lucy Ngare
Nigeria government has over the years come up with different agricultural policy interventions which emphasize value addition to export crops including cashew as a means of job and wealth creations. Despite these interventions, it is still unclear why processors have not been able to exploit this opportunity to enhance value addition to cashew products. It is against this backdrop that this study analysed factors, cost-benefit analysis and effects of value addition strategies on cashew products processed in the South-East zone, Nigeria. The choice of South East zone is based on its antecedent as a major cashew producing zone in Nigeria. Specifically, the study set out to: (i) determine the factors that influence value addition to cashew products processed in South-East zone, Nigeria; (ii) determine the effects of value addition strategies on the competitive advantage of cashew products processed in South-East zone, Nigeria; and (iii) determine the cost-benefit analysis, rate of return on investment, and net income of cashew products processed in South-East zone, Nigeria. The study adopted a cross-sectional survey design using a structured questionnaire to obtain data from 353 randomly and purposively sampled participants. Multinomial logistics (MNL) regression and probit regression were used to analyse objectives (i) and (ii) respectively while ratio statistics, benefit cost ratio, gross margin and rate of return were applied to analyse objective (iii). The findings of the MNL regression reveal that income, type of markets, cashew physiognomies and perception about cost of processing technology have a significant influence on value addition to cashew products in both models at 1% while the coefficients of perception about government policy on cashew processing as well as market facilities show significant at 5% in the second model. Thus confirming the hypothesis that these factors influence value addition to cashew products processed in South East zone, Nigeria. The relative risk ratios for education attainment, age of processor, monthly income, experience from cashew processing, type of markets, market, processors‘ perception about policy of government on cashew processing as well as market infrastructure being greater than one (RRR > 1), suggest that variation in any of these variables will likely influence the processors‘ favouring to add value to cashew kernel and both cashew products over cashew nut and vice versa. Furthermore, the probit regression result shows that quality improvement strategy and packaging strategy have a significant and positive effect on the competitive advantage of value-added cashew products at 1%. Meanwhile, the average net income from 1kg of value-added cashew products is profitable with cashew kernel yielding the highest net income (N2,724.4 (US $7.6) > cashew nut (N2,547.9 (US $7.1)) > both cashew products (N2,340.4 (US $6.5)). The benefit-cost ratios for 1kg value-added cashew nut and cashew kernel products were slightly higher (1:1.4) respectively as against 1:1.3 for both cashew products, suggesting that value-added cashew products deliver positive net income to the processors. Equally, the rate of returns (RORs) for 1kg of value-added cashew products yield the highest (38.1 percent) in cashew kernel > cashew nut (37.4 percent) > both cashew products (34.1 percent). More so, the variable costs account for > 96 percent in cashew kernel and both cashew products to ≤ 98 percent in cashew nut of the total cost of value addition to cashew products in South-East zone of Nigeria. The coefficient of dispersion (COD) in revenue/cost of value-added products shows the least variability in cashew kernel (0.097) and xiv highest in both cashew products (0.122). Confirming that it is least risky to add value to cashew kernel and riskier to add value to both cashew products. The study recommends that government should develop a specific cashew policy for driving value addition programmes across the cashew value chain. Government should come up with programme that will encourage more people to engage in cashew value addition activities because of its high rate of return on investment; and the processors are encouraged to explore training programmes that will enable them to improve quality of value-added cashew products while innovating cashew packs to ensure sustainable competitive advantage from value-added cashew.
Analysis of Household Food Insecurity and the Implication of Measurement Error, Mandera County, Kenya
(Kenyatta University, 2015) Waithaka, Mwenjeri G.
The objective of this study was to analyze food insecurity, underlining the significance of accurate measurement to formulate the required policies for addressing food deprivation. The need for accurate measurement of food requirement is essential to generate adequate information to support decision making especially in areas vulnerable to food shortages and famine. Using random sampling techniques and employing Fisher’s formula, a total of 323 households were selected for the study. Informed by demand theory as articulated by Engel’s law of inverse relationship between total household income and the expenditure on food, plus adding a quadratic term in the equation, the study sought to estimate the magnitude of food insecurity in Mandera County. The cost of basic needs (CBN) method was employed to provide preliminary estimate for the households’ food expenditure level. In order to deal with the problem of measurement error econometric models including ordinary least squares and using instrumental variable in generalized method of moment (IV-GMM) techniques were applied to quantitatively analyze data on quadratic Engel curve. The study established that Mandera County experiences food deprivation of significant magnitude. The study has revealed that, observed household expenditure is not a perfect measure of the actual food insecurity situation. This is because microeconomic data are contaminated by measurement error which reduces reliability of parameters and if not addressed will result to erroneous conclusion in economic analysis. The results show negative and significant quadratic coefficients for both OLS and IV-GMM. Accordingly the results shows that for the estimator that corrects for measurement error 81% of the households are food insecure as opposed to 64%. In this study it is observed that measurement error reduces parameter reliability by 32% which leads to underestimation of food insecurity by about 17%. Among the recommendations resulting from the study include; first it is easy to underestimate the proportion of food insecure households if they are incorrectly estimated and therefore superior statistical and sampling techniques should form the basis of quantifying food insecurity to facilitate decision making process. Secondly, the study supports for policy formulation that is guided by economic limitations not only as a gauge to measure food insecurity but also to guide intervention and evaluating policies aimed at alleviating it. Lastly, to increase food availability and reduce food insecurity, sound data-based analysis anchored on statistical theory that provides inferential basis for guiding policy and program interventions in of paramount importance.
An analysis of the efficiency of rural food markets in the Eastern Central highlands of Kenya
(2014) Ngare, Lucy Wangare
Agricultural markets offer opportunities for households to access incomes and food. Efficient food marketing systems assume a competitive structure thus enabling food distribution from surplus to deficit areas. Liberalization of agricultural markets in developing countries, Kenya included in the late 1980‟s and early 1990‟s aimed at achieving a market oriented economy. Earlier studies on agricultural market reforms have reported varied impacts on market efficiency, thus the need to analyze efficiency of rural markets in the eastern central highlands of Kenya so as to inform policy makers. This study analyzes the efficiency of maize and beans markets in the central highlands of Kenya by examining causality, market integration, asymmetric price transmission, structure and performance of the markets. The study used both primary and secondary data. Secondary data consisted of monthly retail prices for maize and beans for a period of fifteen years from nine markets. The results from time series price data analysis was used to determine whether price movements between the maize and beans markets exhibit integration which was used as an indicator of market efficiency. Primary data was from a survey of 252 traders in Mbeere and Tharaka-nithi sub counties who were selected using multistage sampling. These traders were interviewed using a semi-structured questionnaire in august 2009. Information from the survey was used to evaluate the activity of traders and unearth the factors that promote or inhibit efficiency of the markets. Data processing and analysis used the following techniques: Survey data was analysed using SPSS 16 while time series data was analysed using Eviews 7. The results from price analysis showed that there is a long run relationship between the markets in the study area. Causality between markets revealed that Siakago and Ishiara were the central markets for maize and beans respectively. The markets were cointegrated with stronger cointegration relationships observed between markets closer to each other and between markets located in different production potential areas. However, short run price adjustments were found to be very slow for all the markets, ranging between 8 and 39 months for maize and between 2 and 59 months for beans. There are asymmetries in price transmission, with markets far apart recording higher asymmetries. An analysis of the structure and performance of traders showed that the markets are efficient, as evidenced by the low trader concentration levels for retailers and medium concentration for the wholesalers. Although there was no collusive behavior among retailers, some wholesaler reported that they set prices collusively. The study concluded that although the markets are integrated, efficiency was still low. There was a clear indication of lack of improved market infrastructure, market information and credit facilities which may have contributed to low efficiency. A more organized market infrastructure and provision of market information may improve price transmission and encourage efficiency of the supply chain thereby raise rural income and food supply.
Analysis of Vertical and Horizontal Integration as Determinants of Market Channel Choice among Smallholder Dairy Farmers in Lower Central Kenya
(Kenyatta University, 2015-11) Mutura, James K.
Dairy farming is a significant economic activity in Kenya as it accounts for four percent of the country’s Gross Domestic Product (GDP) and fourteen percent of total value of agricultural output. Market-oriented smallholder dairy farms in the country tend to be concentrated close to urban centres because the effects of market forces over-ride many production factors. Urbanization creates competition for alternative land uses thus leading to land fragmentation which has a potential negative impact on dairy farming especially in Lower Central Kenya. The resultant diminishing land sizes implies that peri-urban smallholder dairy farmers have to intensify milk production by adopting cost minimizing strategies, value addition and marketing through integration. Integration leads to high gross margins, better choice of market channel and improved market participation thus encouraging commercialization of dairy smallholder farming. Multistage sampling technique was used in collecting data from 288 farmers in Kiambu County in 2012. Data management was carried out using SPSS version 20 while econometric analysis were carried out using STATA version 12. Descriptive statistics were used to characterize households while multinomial logit regression (MNL) was used to estimate the probability of households using different marketing channels. Logit regression model was used to determine the likelihood of a household to integrate vertically or horizontally in its dairy enterprise. Mean difference was used to distinguish integrated and non-integrated smallholder dairy farmers. Fixed investment cost, storage type, milk cost share, percentage of milk sold and dairy enterprise turnover explain a household likelihood to vertically integrate in its dairy sector. An increase in total fixed investments, turnover and volume of output increases the probability of household integrating horizontally. The gender of the household head, age, distance from markets, land parcel sizes, milk output and level of education have a significant relationship with horizontal integration. Level of education, training, milk output, and access to information and transaction costs significantly influences the choice of marketing channel. It is recommended that programmes relating to information on milk marketing be made accessible to farmers. There is need to profile farmers on the basis of production and education level and encourage them to use specific marketing channel. Policy makers should identify strategies for disseminating information. It is recommended that farmers should establish and strengthen existing associations and integrate vertically and horizontally on the basis of their spatial location and milk output.
Assessment of efficiency of agro food marketing systems: a case of macadamia nuts value chain in the Central Kenya highlands
(Kenyatta University, 2018-07) Murioga, Wilfred Muchiri
ABSTRACT The macadamia industry in Kenya has been faced with numerous operational and marketing challenges forcing the government to impose export ban of raw nuts since 2008 to date. The then Ministry of Agriculture appointed a task force in 2011 to specifically look into challenges that have been facing the macadamia industry including import ban of Kenya’s kernel by USA. Export of macadamia nuts from Kenya has also dropped from 2nd to 5th position in sales volume in the world from 1990s to dare. These problems point to efficiecy challenge. It was upon this background that this study was carried out. The main purpose was to examine and assess the intervening multi-factor market variables that affect the the efficiency of this value chain by concentrating on Central Kenya Highlands. The study sought to assess the efficiency of agrifood marketing systems in five purposively selected counties in the Central Kenya Highlands, focusing on quality control systems, information flow, pricing systems, gross margins, promotion and advertising, as well as market organizational structures and conduct. To achieve this, the study relied on the world economic triangle model and social marketing theory. The world economic triangle model was used in providing information on global markets and global value chain, while social marketing theory was used in providing the strategic orientation of macadamia marketing to increase efficiency. The study developed a conceptual framework which linked the research objectives with five market channel players in order to develop efficiency in the macadamia marketing system in the central Kenya highlands. Multistage sampling procedure was carried out and five sets of questionnaires were used to obtain primary data for analysis. There were 292 market traders taken from 32 stratified market centers in Embu, Kiambu, Kirinyaga, Murang’a and Nyeri counties. Each set of questionnaires was tailored to elicit particular information from the market traders who were 162 farmers, 28 middlemen, 7 processors, 30 distributors and 65 retailers. Data from the field was cleaned, coded and saved for processing using Statistical Packages for Social sciences SPSS version20 and STATA version 12 for descriptive statistics. Both descriptive and inferential statistics were used alongside statistical models such as regression, multiple regressions, integration, co-integration and price transmission, in determining macadamia marketing efficiency. Findings from the study showed that lack of proper organizational structures and conduct, poor pricing systems, lack of centralized authority for quality control standardization and certification of macadamia for exports are some factors that lower the market efficiency. The existing macadamia marketing system was inefficient, which required a total marketing system overhaul and a new marketing strategy in development of macadamia industry. This included adoption of alternative new technology to reverse the current downward market trend of macadamia industry in Kenya, where it has moved from second to fifth position in sales volume in the world in last few years. This study recommends proper organizational structures on quality control, better pricing policies, promotions and advertising as well as auction board to be set, to improve efficiency of macadamia marketing systems in Kenya.
Assessment of the Structure and Performance of the Milk Value Chain in Western Kenya
(Kenyatta University, 2015-11) Omondi, Simon Peter Wanjala
Western Kenya Counties of Busia, Bungoma, Kakamega and Vihiga experience persistent milk deficit and low commercialization on smallholder farms. Information and knowledge on sources and points of inefficiency along the dairy value chain that contribute to low milk production and hence persistent milk deficit are scanty. The main objective of this study was to assess the structure and performance of the milk value chain in the region to determine market opportunities, variables influencing milk production, sources of inefficiencies and an upgrading strategy. An explanatory research design was used to collect both quantitative and qualitative data from 385 consumers and seven institutions in the four Counties and;400 dairy farmers, six focus groups and twelve key informants in Butula and Butere Sub Counties using a stratified proportional random sampling technique. End market tool kit and' descriptive statistics; Household Commercialization Index, Pearson's correlation and multiple linear regression were used to analyse data on markets, farm assessment and upgrading strategy respectively. The findings on markets revealed that the region's milk deficit was about 177 million litres per year with demand estimated to be 392 million litres per year against an annual production of 215 million litres. Quality and price were found to be the most important attributes significantly influencing choice of milk supplier (p
Determinants of crop and land management practices and effects on production risks under variable climatic conditions in Eastern Uganda.
(2014-08) Kagorora, Kansiime Monica
This study aimed to establish the effects of various crop and land management practices in reducing production risks under variable rainfall regimes in Eastern Uganda. An approach that integrated both rainfall variability and agricultural production was used, through yield functions. The following specific objectives were addressed based on knowledge and methodological gaps identified in literature review: i) establishing the extent and pattern of variation of annual and seasonal rainfall over a 40-year period, ii) determining factors that influence farmers' decisions to adopt management practices, iii) evaluating the effect of farmer-preferred management practices on the mean and variance of crop production in variable rainfall regimes, and iv) assessing farmers' perceptions of the effectiveness of the various management practices in mitigating against rainfall variability-induced production risks. Data for this study were obtained from 315 households, 9 focus group discussions and 23 key informants drawn from Mbale, Pallisa and Sironko districts. Study results showed an increasing trend in annual and ASON rainfall, and decreasing trend for MAMJ rainfall, with ASON exhibiting higher variations than MAMJ. Farmers employed a number of crop and land management practices strategically in response to perceive seasonal variations in climatic conditions, majorly influenced by their perception of rainfall adequacy. Most of the farmer-preferred management practices showed significant positive mean impacts on yield but had different risk-reducing effects on yield. Changing sowing dates and crop varieties, soil bunds, compost manure, cover crops, crop rotation and intercropping showed significant (p~O.05) risk-reducing effects on yield. Their effects varied across agro-ecological zone, except soil bunds and compost manure whose use consistently exhibited both yield-increasing and risk-reducing effects across all the agro-ecologies. Study results have the following implications: First, the changing scenario in variability of rainfall will affect cropping patterns in the study districts thus requiring introduction of crops or varieties best suited to the patterns such as early maturing crops for MAMJ and more water tolerant crops for ASON. Second, the effectiveness of technologies in reducing production risks is location-specific thus the need to develop and disseminate location specific adaptation approaches, instead of blanket recommendations of similar adaptation measures across locations. Lastly, the need to focus not only on the technical aspects of technologies, but also the social dimensions such as perceptions of smallholder farmers of technology effectiveness, if adoption and retention of management practices is to be increased. Development and research organizations promoting adaptation options should involve farmers in technology evaluation so as to recommend the most feasible options given farmers' situations and local perceptions.
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.
Economics of biological control of cereal stemborers in Eastern Africa: a case study of maize and sorghum production in Kenya
(Kenyatta University, 2018-01) Midingoyi, Soul-Kifouly Gnonna
The International Centre of Insect Physiology and Ecology (icipe), undertook a biological control (BC) programme for control of stemborers from 1993 to 2008, to reduce cereal yield losses due to stemborer attack in East and Southern Africa. The programme released four biological control agents—Cotesia flavipes, Cotesia sesamiae, Telenomus isis and Xanthopimpla stemmator—to control the economically important stemborer pests Busseola fusca, Chilo partellus and Sesamia calamistis. The purpose of this research was to assess the ex-post economic impact of the BC program among smallholder farmers in Kenya. Specifically, the study sought to: i) determine the productivity-effects of BC at farm level, ii) assess the impact of BC on food security and poverty and iii) estimate the global welfare-effect from the BC. Primary data was obtained from biological and household surveys. The household survey was conducted to collect socio-economic data on 600 households randomly sampled across maize agro-ecological zones of Kenya. Secondary data included time-series evolution of maize and sorghum production, yield, cropped area, market prices, price-elasticity of supply and demand and GIS information of the release locations. Methodologically, econometrics-based damage control function framework was adopted to address the first objective, the counterfactual framework using continuous treatment regression analysis for the second objective and economic surplus model analysis to address the third objective. Findings from productivity analysis show a reduction of insecticide use with the BC, thus demonstrating the potential environmental hazard-reducing effect of BC. Additionally, results show that BC has a positive impact on productivity and the derived marginal physical product show that 1% increase in BC level is associated with at least 12 kilograms per hectare increase in yield. The dose response functions (DRF) and the Marginal Treatment Effect (MTE) from the continuous treatment models provide evidence that BC has had a positive and increasing impact on poverty outcomes and food security components exept dietary diversity. For poverty, on average one percent increase in BC intensity is associated with a US$ 1.15 increase of household expenditures and a 0.5% reduction in poor households. With regards to food security, a one percent increase in BC level increased food expenditures by US$ 1.24 and calorie intake by 6.94 Kcal, and reduced the number of food-insecure households by 0.16%. Findings from the global welfare-effect show that BC intervention has contributed to an aggregate monetary surplus of US$ 0.74 billion to the Kenyan economy over 20 years period (1993 to 2013), with 76.71% ($US 568.06 million) from maize and the remaining 23.29% ($US 172.45 million) from sorghum. The net present value was estimated at US$ 142 million for both crops. The attractive internal rate of return (IRR) of 113% as well as the estimated benefit–cost ratio (BCR) of 276:1, illustrate the efficiency of investment in the BC research and intervention. The estimated number of people that could be lifted out of poverty was on average 57,400 persons (consumers and producers) per year, representing an annual average reduction of poor populations of 0.35%. These findings underscore the need for increased investment in BC research to sustain cereal production, and developing BC can be seen as an additional environmentally-friendly tool in the fight against food insecurity and poverty in Kenya. Policy implications are two-folds: boosting the effectiveness of the BC in regions with low level of control through augmentative and conservative BC, and up-scaling the BC strategy to regions with serious stemborers invasion.
Economics of Integrating Push-Pull Technology in Maize-Dairy Farming Systems in Eastern Uganda
(Kenyatta University) Chepchirchir, Ruth
Cereals particularly maize, are the most essential food and cash crops for majority of smallholder households in Sub-Saharan Africa (SSA). In maize production, small-sized producers are confronted with different constraints including stemborers, Striga and degraded soil leading to poor crop yields. In response to these challenges, the International Centre of Insect Physiology and Ecology (icipe) and collaborators came up with a habitat management approach; the Push-pull Technology (PPT) for simultaneous restrain of the three key constraints. Despite high adoption of PPT in East Africa, its impact has not been fully understood in the region. This study characterizes farming systems and assesses factors that instigate their preference; it evaluates the economic performance of PPT when integrated in maize-dairy farming systems and determines the impact of PPT on household welfare. The study uses both primary and secondary data and simple random sampling to collect data from 560 households. Multivariate analysis, Binomial logit, Dynamic Research for Evaluation Management (DREAM) model, and Generalized Propensity Score (GPS) were utilized in the analysis. Outcomes confirm that household size, age, farm size, membership to community groups, and participation in PPT significantly influence the choice of farming system. Net Present Value, the Internal Rate of Return, the Benefit to Cost Ratio and gains to households supported the economic viability PPT. GPS dose-response function estimates revealed a positive and significant average effect of the intensity of PPT adoption on maize yield, incomes and poverty reduction. This study concludes that proper implementation of PPT offers the prospect of monetary benefits to households; also PPT has a positive impact on rural poverty in Uganda. Agricultural policies that target farm household food security and poverty reduction in maize-dairy based systems in Uganda and elsewhere should explicitly encourage further up-scaling and dissemination of PPT.
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.
Evaluation of milk production efficiency Of dairy farms in Embu and Meru counties, Kenya
(2014-09-09) Kimenchu, Mugambi David
Despite Kenya's long dairy farming history spanning about 100 years, favourable climatic conditions and a 3.5 million national herd, milk per capita consumption is low (76.7 kg) and export quantities (milk) to the regional market where its products enjoy preferential access are negligible. These observations raised the question of farm level milk production efficiencies. This study evaluated milk production efficiency of dairy cow farms in Embu and Meru counties of Kenya, using the stochastic frontier approach. Data were randomly collected from 135 dairy farms and were supplemented with information from other dairy industry stakeholders. The sample size was detennined using the Cochran's (1977) formula. Data were analyzed using the SPSS, Frontier 4.1 c and STATA computer softwares, where both descriptive and inferential statistics were derived. Stochastic frontier production and cost functions were estimated using the maximum likelihood estimation technique. The farms were characterized and both technical and cost efficiencies estimated. Each of the efficiencies was then related to milk production cost to establish the cost reduction potential. Results revealed that the number of lactating cows and the amounts of roughages, concentrates, and mineral supplements were the major factors influencing milk output, while the prices of roughages and labour were the major factors associated with the total production costs. The dairy animals received inadequate feeds and mineral supplements. The animals were overstocked and underfed in an average twoacre mixed crop-livestock farm. The mean farm technical and cost efficiencies were 83.7 and 95.6%, respectively, and therefore inefficient. These results implied that milk production could be increased by 16.3% through better use . of available resources given the current state of technology without extra cost, while its cost could be decreased by about 4.4% without decreasing output. The milk production model coefficient was 2.11. It was shown that roughage and labour could substitute for one another to reduce dairy farming costs. Optimization of farm efficiencies and taking advantage of economies of scale through increased production inputs could be part of short-term measures to address the challenges facing smallholder dairy fanning. It was recommended that farmers specialize in either dairy or crop farming. Those choosing dairying, require shifting from the Friesians and Ayrshires to the smaller dairy breeds such as Jerseys, for they require less feed quantities in milk production. The researchers require identifying the least-cost combination ratio for roughages and labour inputs. The policy makers should provide legal guidelines to ensure that sub-division of agricultural land is minimized and further, promote both enterprise specialization and approaches that make the farm inputs such as concentrates and mineral supplements affordable.
Impact of Human Capital Development and Fixed Capital Formation on Agriculture Productivity in Uganda
(Kenyatta University, 2022) Owuor, Charles; Eric K. Bett; Gabriel W. Mwenjeri
This study was inspired by the fact that Uganda‟s economic development prospect is intertwined with agriculture sector growth. The country has 80% of arable land, but only 35% is under production majorly using subsistence suboptimal methods. This thesis sought to deepen the understanding of agriculture and education nexus and the low transformation of the agriculture sector in Uganda. This work comes from a background that Uganda‟s education sector has been criticised for churning out half-baked graduants at all levels without the necessary skills and capacity to innovate, unlock and exploit critical value chains to spur economic growth. Therefore, this dissertation examines the multiple dimensions of the impact of public spending on education, school enrolment, physical capital formation and labour on agricultural sector output. The study is underpinned by the growing interest in empirical investigations on the effects of public education expenditure and education sector outputs on economic growth in developing countries to inform the education sector policy environment. The study utilised the ARDL framework using annual macroeconomic data from 1982 to 2018. The year 1982 marked the beginning of implementing economic reforms and structural adjustment program after a near economic collapse during the the Idi Amin era in 1970‟s. Theoretically, at sector level, growth in the agriculture sector is positively correlated to a reduction in rural poverty that is still a characteristic of rural households. Results reveal that public expenditure on education has a net positive effect on agriculture sector output. The training of agriculture graduates had a negative long run effect while the short run effects were significant but positive. Similary, phyiscal capital formation and labour force accumulation had short run positive effect on agriculture sector output in a short run, while in the longrun, the effects were negative. This study strongly recommends that the public sector puts in place an incentive system to retain skilled and qualified human resource in the agriculture sector. Further this study puts to the fore the argument that investment in education is still a viable public investment choice that has a positive effect on sectoral output which translates into overall economic growth, and confirms that education expenditure plays a critical role at sectoral level growth.
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.
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.

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