An analysis of indigenous chicken marketing efficiency and market participation among producers in Makueni County- Kenya
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Date
2014
Authors
Ayieko, David Michael Ochieng
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Abstract
The indigenous chicken Gallus domesticus production is an important agricultural
activity in many households in Kenya. Despite its importance, little research has
been carried to enhance its productivity unlike other farm enterprises. The
producers from Makueni are constrained in their participation in the indigenous
chicken high value markets .Therefore, the objective of this study was to analyze
the marketing efficiency of the indigenous chicken marketing channels in
Makueni, determine the profitability of indigenous chicken to producers in
Makueni and to determine the factors that have an effect on participation of
producers from Makueni in the high value markets. A random sampling was used
to sample 130 households from Makueni County and 66 traders from indigenous
chicken markets in Makueni County. The Data used in this study was collected by
the use of semi structured questionnaires, with additional information from key
informant interviews and focus group discussion. This data was then analysed
using Stata11 and Excel software. The SCP (structure-conduct-performance)
approach coupled with the shepherd index, Gross margin analysis and Heckman
two stage models were used to analyze the marketing efficiency, determine the
profitability of indigenous chicken to producers and identify factors that have an
effect on the high value markets participation of producers respectively. The
results showed that the indigenous chicken markets had a concentration ratio
(CR4) of 41% and a Herfindahl Hirschman index (HHI) of 1087.The 8 marketing
channels identified had an average marketing efficiency of 2.29. The main
constraints included: price fluctuations, inadequate access to credit and
information, inconsistent supply, theft and lack of storage facilities. The producers
got a gross margin of Ksh.8455 per year. Apart from the age of the household
head, which had a negative effect on the producer decision to participate in
indigenous chicken high value markets, processing, education level of household
head, the farmer group membership status, the flock size and region all had a
positive and significant effect decision to participate in indigenous chicken high
value markets. On the other hand, the family size, the type of indigenous chicken,
experience in selling indigenous chicken and the flock size all had a significant
and positive effect on the number of indigenous chicken sold. However the age of
the household head had a negative effect on the number of indigenous chicken
sold. Therefore it is recommended that contract models should be used to improve
the marketing efficiency. Secondly, the producers should use collective marketing
to enhance their profits. Finally to increase the participation of the producers in the
high value markets, the Government policy framework must focus on improving
indigenous production and marketing in Makueni County.
Description
Masters of Science-Department of Agribusiness Management and Trade (AMT), 136p. October, 2014, HD 9437.E8A96