Analysis of Contract Farming Participation and Profitability among Smallholder Sorghum Farmers in Laikipia County
| dc.contributor.author | Muhia, Kelvin Thuku | |
| dc.date.accessioned | 2025-03-25T13:24:39Z | |
| dc.date.available | 2025-03-25T13:24:39Z | |
| dc.date.issued | 2024-09 | |
| dc.description | A Thesis Submitted in Partial Fulfilment for the Award of the Degree of Master of Science (Agribusiness Management and Trade) in the School of Agriculture and Environmental Science of Kenyatta University September 2024 Supervisors: 1.Eric Kiprotich Bett 2.Gabriel Mwenjeri | |
| dc.description.abstract | Agricultural productivity and profitability should be improved to enhance incomes and food security among smallholder farmers. The Laikipia County government has been deliberately putting effort into encouraging smallholder sorghum producers to embrace contract farming (CF) to mitigate market failures linked to spot markets that are a result of information asymmetry. However, empirical studies on participation decisions in CF among smallholder sorghum farmers are limited. The study examined determinants of participation decision and intensity, and profitability of CF among smallholder sorghum farmers in Laikipia to bridge the information gap. Multistage sampling was used, and the research first used purposive sampling to pick Laikipia West and East sub-counties as the study sites. The second stage was random sampling to identify small-scale sorghum farmers within specific wards. The data was collected from 188 sorghum farmers between the years 2016 and 2017 using a semi-structured questionnaire. The research used a double hurdle (DH) model to determine the decision to participate in CF as well as the intensity of participation. Multiple linear regression (MLR) assessed the determinants of profitability among smallholder sorghum farmers. The results revealed that the significant determinants of CF participation were land ownership, distance to a major town, land acreage, group membership, and the number of extension visits, which significantly influenced the decision to participate in CF. Participation intensity in CF was influenced by farming experience, extension access, credit, and land tenure. CF participants attained an annual profit of Kes 57,170 per acre with a value of 1.69 for return on investment (ROI). Age, education, and land size influenced profitability among the CF non-participants. Education, land size, and credit access determined CF participants’ profitability. The study concluded that land tenure was a motivating factor that influenced the decisions of sorghum producers in CF to participate due to the security of tenure. Smallholder sorghum production under contract farming was a profitable business. Credit accessed through the CF scheme increased participation intensity and profitability in sorghum farming. The study recommends that the County government of Laikipia improve on the extension services to augment those offered by the East Africa Malting Limited agents. The County government should assist as many farmers as possible in acquiring land title deeds, which increases their enterprise profitability. The Necco Fosa Cooperative Society agents and Laikipia county extension providers ought to work together to inspire CF non-participants to join the CF scheme to access credit. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29848 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Analysis of Contract Farming Participation and Profitability among Smallholder Sorghum Farmers in Laikipia County | |
| dc.type | Thesis |