Efficiency and competitiveness of chicken production in Machakos, Kiambu and Uasin Gishu Counties, Kenya
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Date
2023
Authors
Wambua, Scolastica Mwikali
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
A company's or industry's competitiveness is its capacity to successfully compete in order to achieve sustainable growth and earn at least the opportunity cost of the resources used. The poultry sector is very important to the economy of Kenya and plays a key role in food and income security of majority of the producers who are mostly in rural areas. There has been high imports of poultry products from Uganda and China to the country in the past five years causing an uproar by local producers who complain of cheap products flooding the market and affecting their profits. In 2020, Kenya imported 1,000 MT of eggs with zero exports despite having a surplus in egg production. This study was therefore to assess the competitiveness and efficiency of chicken production in Kenya to determine the level of efficiency and ability to produce quality products at relatively lower costs. The specific objectives were; determine the technical, cost and allocative efficiency levels, assess the factors influencing these levels and investigate the competitiveness of improved indigenous chicken farmers in Kenya. Data were collected from 384 small-scale chicken producers across three counties of Kenya (Uasin Gishu, Machakos and Kiambu). A semi-structured questionnaire which had been uploaded on android phones was used to obtain data .A stochastic frontier analysis was carried out to determine the technical and cost efficiency of improved chicken producers in the three counties and factors influencing the efficiencies and a policy analysis matrix approach (PAM) was used to measure the competitiveness of the producers. Results indicated that majority of the farmers were middle aged women who had formal education. The major constraint of chicken production was cost of feeds which had driven some producers of the chicken enterprise. Results indicated that the producers attained an average technical efficiency of 58%,cost efficiency of 39% and allocative was 67%, which were low compared to efficiency scores recorded elsewhere. Some of the socio and institutional factors affecting the efficiencies included; household size, education level of household head, access to extension services, distance to input and output markets and distance to a tarmacked road. Results from the PAM indicated that they were competitive at social values but uncompetitive at private values. The study recommends that research institutions develop cheaper alternative sources of starch and proteins to cut down cost of feeds. It is also recommended that extension services are enhanced to improve farmers’ knowhow on feed formulation, housing and disease management.
Description
A research thesis submitted in partial fulfilment of the requirements for the degree of doctor of philosophy in agribusiness management in the school of agriculture and environmental sciences of Kenyatta University, June 2023
Keywords
competitiveness, efficiency, egg imports, poultry and improved indigenous