Economic Analysis of Indigenous Chicken Production: The Case of Smallholder Farmers in Makueni and Kakamega Counties, Kenya

Abstract

ndigenous chicken (IC) play a crucial role in addressing food insecurity in rural households. Smallholder farmers rely on IC for income generation, asset accumulation and nutritional requirements. Indigenous chicken products (meat and eggs) are preferred for their good taste, leanness and the organic nature of production. Therefore, improving productivity of IC through rearing improved breeds would enhance commercialization. However, information on profit and determinants of profitability among smallholder farmers in Makueni and Kakamega counties, Kenya remained scanty. A total of 384 households were sampled using stratified random sampling procedure. Primary data was collected using a structured questionnaire. Secondary data was accessed from Makueni and Kakamega livestock offices. Gross margin analysis (GMA) and multiple regression econometric model was employed using STATA 13. Results of the profitability analysis, showed that investing in indigenous chicken production was profitable. However, rearing improved indigenous chicken (IIC) proved more profitable with an annual gross margin of Ksh. 14238 and Ksh. 9824 per 100 birds for IIC and IC, respectively. Flock size, farm size, group membership, access to credit and distance to the training centre significantly influenced profits. Policies should prioritize on formation of social groups to encourage collective action in IC production and marketing