Contract Farming of Coconut in Kwale and Kilifi Counties: Participation and Productivity Analysis
No Thumbnail Available
Date
2014-08-26
Authors
Macharia, Christopher Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Coconut is mainly grown by small scale farmers in coastal Kenya. However,
the marketing system is inefficient and the production low and this has
hindered farmers from getting optimum benefit from coconut farming.
Contract farming in coconut has been introduced since 2006 but it is limited
and only a small number of farmers engage in it. This study analyzed coconut
contract farming in relation to participation and productivity. It sought to
characterize and obtain a better understanding of coconut contract farming,
determine factors that influence participation and evaluate the effect of
contract choice on productivity and market access. The study was conducted
in Kwale County Msambweni division and Kilifi County in Watamu division.
Stratified simple random method of sampling was used. The data was
collected through formal interviews using a structured questionnaire. The data
were analyzed in a comparative approach. Regression models were used to
determine factors that influence participation, price and income. The study
established significant difference in household demographics between contract
and non-contract farmers. The descriptive analysis indicated that contract
farmers were more educated, had bigger farms and more coconut trees than
non-contract farmers. Unlike the contracted farmers, non-contract farmers had
low trust on other farmers. Contract farmers’ price for coconut was 26 percent
higher and their average income per tree was 39 percent higher. Regression
analysis indicated that price, payment date and level of education of household
head were the main factors that positively influenced participation in contract
farming. It also established that presence of other sources of income and
farmers’ need for credit affected the participation negatively. The study found
that contract farming improved farmers’ income and access to market. It
should therefore be promoted in coconut farming by developing policies that
are enabling.
Description
Department of Agribusiness Management and Trade, 113p. 2014,
SB 401 .C6M3