Structure, Conduct and Performance Analysis of the Food Markets in the Highlands of Central Kenya
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Date
2012
Authors
Ngare, L. W.
Wambugu, Stephen K.
Nzuma, J.M.
Shisanya, C.A.
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Abstract
This study was conducted in the highlands of central Kenya and was designed to have
a snapshot of the prevailing rural marketing scenario with a view of understanding the
working of marketing system in the region. The general objective was to capture how
closely actual marketing system in Mbeere and Meru South districts approximate a
competitive marketing channel. The industrial organization structure conduct and
performance model of maize and beans traders was used to accomplish the objectives
of the study. Questionnaires were used on 254 randomly selected traders. The results
indicated that there was a tendency towards smaller traders while market concentration
was lower among the retailers than among the wholesalers. A number of barriers to
entry were identified, which were not as a result of trader's conduct. Gross margin
analysis showed a tendency toward competitiveness. Efforts towards removal of the
identified barriers will improve the performance of the markets.
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Keywords
Rural markets, Efficiency, Competition, Structure-conduct-performance model