ITHE ROLE 0 S~LHOLDER FARMER GROUP IN DELIVERY ~ OF AGRICULTURAL SERVICES FOR IMPROVED LIVELmOODS IN MURANG' A DISTRICT, KENYA \ MWANGI STANLEY NDEGWA C50/CE/I0219/04 A THESIS SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE OF MASTER OF ARTS IN THE SCHOOL OF HUMANITIES '-- AND SOCIAL SCIENCES OF KENYATTA UNIVERSITY DECEMBER, 2009 Mwangi, Stanley The Role of . Smallholder Farmer 111111111g1111111D~111111111 2011/351100 • Declaration This thesis is my original work and has not been presented for a degree in any other University. Signed: ;fflo~ Date: ~.c?.:-:.!.~.;':".~.J .e=:: .. Mwangi Stanley Ndegwa C50lCE/10219/04 Declaration by Supervisors This thesis has been submitted with our approval as the appointed University Supervisors. .~.u1-- OLflot ( c:LolO SIgned: ~ Date: . Dr. Dorothy N. Mutisya Senior Lecturer Department of Geography Kenyatta University Signed: ~.~~ .. : Date: d.-:.1.t.2::( ~ ..I . Prof. Chris A. Shisanya I Associate Professor Department of Geography Kenyatta University 11 Dedication To my dear wife Judy Njeri and son Brian Mwangi for their prayers and encouragement throughout my studies. iii Acknowledgements My sincere appreciation goes to my two supervisors Dr. Dorothy N. Mutisya and Prof. Chris A. Shisanya, who patiently guided me throughout this work. I am also grateful to Dr. Wambugu, Dr. Waswa and Dr. Monicah Mucheru-Muna for finding time out of their busy schedules to make useful contributions that helped me improve this work. Special thanks go to Ann Kuria for her assistance in data analysis, Mr. John Muchiru and Mr. Joseph Kagwithi for their participation in primary data collection. I also appreciate all interviewees for their cooperation. I thank the staff of the Ministry of Agriculture in Kahuro Division for their assistance when identifying the active farmer groups in the study area. Special appreciation goes to all members of staff of the Department of Geography, Kenyatta University for the support they offered to me throughout this study. Gratitude is also extended to my classmates Felistus Mbugua, Eustas Kithumbu plus other regular masters students for their companionship through the long academic journey. Finally, I would like to acknowledge that without God's grace this study would never have been completed. IV Table of Contents Declaration ii Dedication iii Acknowledgements iv Table of Contents v List of Figures vii Operational Definitions of Key Terms ix List of Abbreviations and Acronyms x Abstract xi CHAPTER ONE 1 INTRODUCTION 1 1.1 Background of the Study 1 1.2 Problem Statement 3 1.3 Research Questions 4 1.4 Research Objectives 4 1.5 Research Hypothesis 5 1.6 Justification of the Study 5 1.7 Scope and Limitations of the Study 6 CHAPTER TWO 7 LITERATURE REVIEW 7 2.1 Overview of Related Studies 7 2.2 Emergence of Farmer Groups 8 2.3 The Role of Farmer Groups in the Delivery of Agricultural Services 9 2.4 Challenges Facing Farmer Groups 13 2.5 Policy -Oriented Measures towards Improving Access to Agricultural Services 14 2.6 Gaps in Literature 16 2.7 Conceptual Framework 17 CHAPTER THREE 20 RESEARCH METHODOLOGy 20 3.1 Study Area 20 3.1.1. Geographical Location and Size of the Study Area 20 3.1.2 Physiographic and Natural Conditions 20 3.1.3 Economic Activities 22 3.2 Research Design 23 3.3 Target Population 23 3.4 Sample Size and Sampling Procedures 24 3.5 Research Instrument and Nature of Data Generated 25 3.5.1 Primary Data 25 3.5.2 Secondary Data 27 3.5.3 Pilot Survey 27 3.6 Data Generation Procedures 28 3.7 Data Analyses Procedures 29 v CHAPTER FOUR 32 RESULTS AND DISCUSSIONS 32 4.1 General Characteristics of the Sampled Population 32 4.1.1 Gender of the Household Heads 32 4.1.2 Age and Marital Status of the Respondents 33 4.1.3 Education Level of the Respondents 34 4.2 Formation of Farmer Groups in Kahuro Division 35 4.2.1 Features and Composition of Farmer Groups 35 4.2.2 Farmer Groups' Objectives 38 4.2.3 Farmer Groups' Core Activities 39 4.2.4 Factors Influencing the Choice of Farm Enterprises 40 4.3 Effects of Farmer Groups on Agricultural Services Delivery 44 4.3.1 Marketing Services 44 4.3.2 Extension Services 48 4.3.3 Financial Services 52 4.4 Challenges Constraining Farmer Groups from Accessing Agricultural Services 58 4.4.1 Factors Internal to the Farmer Groups 58 4.4.2 Challenges External to the Farmer Groups 60 4.5 Policy Recommendations to Improve Smallholders' Access to Agricultural Services 62 CHAPTER FIVE 65 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 65 5.1 Summary ofthe Research Findings 65 5.2 Conclusions 68 5.3 Recommendations 69 5.4 Suggestions for Further Research 71 APPENDICES 78 Appendix I: Questionnaire 78 VI List of Figures Figure 2.1 Conceptual Framework Illustrating the Role of Farmer Groups in Delivery of Agricultural Services 18 Figure 3.1: Map ofKahuro Division, Murang'a District Showing Farmer Group Locations 21 Figure 4.1: Household Head Gender 32 Figure 4.2: Age of the Respondents 33 Figure 4.3: Marital Status of the Respondents 34 Figure 4.4: Education Levels ofthe Respondents 34 Figure 4.5: Duration of Membership to Farmer Groups 35 Figure 4.6: Source oflnitiative to Form Farmer Groups 36 Figure 4.7: Source of Farmer Groups' Funding 37 Figure 4.8: Objectives of the Farmer Groups '- 38 Figure 4.9: Farmer Groups' Core Activities 39 Figure 4.10: Factors influencing Farm Enterprise Choice 41 Figure 4.11: Sizes of Land Owned by Kahuro Residents 42 Figure 4.12 Priority Staple Foods Purchased in Kahuro 43 Figure 4.13: Rating of Food Security in Kahuro .43 Figure 4.14: Main Farm Produce Sold through Farmer Groups 44 " Figure 4.15 Marketing Channels for Horticultural Produce 45 Figure 4.16 Milk Outlets used by Dairy Farmers .46 Figure 4.17 Farmers Access to Marketing Services 47 Figure 4.18: Sources of Market Information 48 Vll Figure 4.19: Main Source of Extension Advice 49 Figure 4.20: Farmers Access to Extension Services 50 Figure 4.21: Crop Management Training 51 Figure 4.22: Livestock Management Training 52 Figure 4.23: Source of Farmer Groups' Credit.. , 53 Figure 4.24: Modes of Financial Assistance 54 Figure 4.25: How Farmer Groups' Credit was Utilized 54 Figure 4.26: Farmers' Access to Financial Services 55 Figure 4.27: Assessing of Main Agricultural Services 56 Figure 4.28: Additional Benefits of Farmer Groups 57 Figure 4.29: Factors Internal to the Farmer Groups 59 Figure 4.30: Challenges External to the Farmer Groups 61 Figure 4.31: Suggested Solutions to Challeges Facing Farmer Groups 63 Figure 4.32: Future of the Farmer Groups 64 V1l1 Operational Definitions of Key Terms Agricultural Services include the provision of extension advice, marketing and financial services, including farm inputs such as planting seeds, fertilizers and chemicals, veterinary services, to smallholder farmers (FAO, 1982). Farmer Groups refer to voluntary small groups, comprising of about 20--30 smallholder farmers, who engage in activities aimed at improving the livelihoods of members (FAO, 1998). Smallholder farmer refers to one who undertakes farming activities on a small farm. For the purpose of this study, a small farm size does not exceed 5 acres (FAO, 1982). IX ASSP DGAK FFSs FAO GDP GoK IFAD ISAAA JICA KARl MDGs MoA NEPAD NGOs SPSS SSA WB List of Abbreviations and Acronyms Agricultural Services Support Programme Dairy Goat Association of Kenya Fanner Field Schools Food and Agricultural Organization Gross Domestic Product Government of Kenya International Fund for Agricultural Development International Service for the Acquisition of Agri-Biotech Applications Japanese International Cooperation Agency Kenya Agricultural Research Institute Millennium Development Goals Ministry of Agriculture New Partnership for African Development Non- Governmental Organizations Statistical Package for Social Sciences Sub-Saharan Africa World Bank x Abstract Since the 1990s, there has been liberalization affecting the delivery of agricultural services in many sub-Saharan African countries. The introduction of a free market in Kenya has led to the collapse of the cooperatives that had monopoly on agricultural produce marketing and input supply subsidized by the Government. On the other hand, the private sector, which is in its nascent stage, often find it uneconomical to provide most agricultural services to the smallholder farmers particularly, due to poor infrastructure in many rural areas. Thus, in many instances widespread gaps have been created in agricultural service provision which adversely affects smallholder agricultural productivity. As adaptive strategies smallholder farmers in several developing countries have organized themselves as groups in attempt to improve their access to agricultural services. Studies on cooperatives and women groups with the latter often focusing on socio-cultural objectives particularly, on home economics and merry-go rounds are also common. However, little focus has been on the grassroots local initiatives' role in smallholder agricultural development. Therefore, the purpose of this study was to evaluate the role played by farmer groups in enhancing smallholder farmers' access to . agricultural services in Kahuro Division, Murang'a District, Kenya. Stratified random sampling (using four locations) was used to obtain the study sample of 80 respondents. Researcher-administered questionnaires were used to collect the primary data for this study. Secondary data was also used. Data analysis for this study was done using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer software. The study revealed that up to 75% and 50% of respondents indicated that the main driving force behind the formation of the farmer groups was their desire for increased incomes; and increased food production respectively. Clear objectives are prerequisite for effective functioning of groups. It was noted that members of the 8 farmer groups sampled engaged in diverse income-generating enterprises such as horticultural farming and dairy-goat keeping. On average, about 52% of members indicated that their access to three agricultural services namely; marketing, extension and financial services had improved after joining farmer groups. The above fmdings clearly indicate that farmer groups have enormous potential of enhancing smallholder farmers' access to agricultural services. Majority of the respondents (87%) identified the poor access to farm credit as the most critical challenge they were facing; followed by high cost of inputs (71%), low selling prices of farm produce (69%); and persistent drought (61%). To foster financial independence this study recommends that farmer groups should be formed around income-generating activities. The government, private sector plus NGOs should also support such grassroots efforts through capacity building that will go along way in improving management of farmer groups. Farmer groups can only flourish ir; ?:: environment with proper climate for group development. Improved access to agricultural coco'"";"P'3 ~!:r()'_lgheffective farmer groups will lead to increased agricultural productivity nludl Jirc:ctly enhances food security and improved livelihoods. Xl CHAPTER ONE INTRODUCTION 1.1 Background of the Study The crucial role of agricultural development in Sub-Sahara Africa (SSA) as the engine for rural development has been re-confirmed (NEPAD, 2002). This results in part from the drive for reaching the Millennium Development Goals (MDGs) by 2015 and in particular MDG 1; a 50% reduction of poverty in SSA, which is predominantly rural (WB, 2002). It is realised that in order to achieve the MDGs, a more effective approach to innovation for agricultural development is needed (WB, 2002). Kenya's economy is largely agro-based, with the agricultural sector accounting for 26% of the Gross Domestic Product (GDP) and 60% export earnings (GoK, 2001). In addition, agriculture indirectly contributes by about 27% to the country's GDP through manufacturing, distribution and other service related sectors and it also employs more than 80% of Kenya's workforce (GoK, 2003). Agriculture is therefore, the most important tool for promoting national development. Kenya's Vision 2030 isolates agriculture as a key sector in the strategy if the country is to realize the targeted average GDP growth rate of 10% annually (GoK, 2007). 1 Kenya's agriculture is predominantly small-scale farming, mainly in the high potential areas. Smallholder farmers account for about 75% of the total agricultural output (GoK, 2003). Smallholder agriculture is often less able to cope with constraints that derive from the Structural Adjustment Programmes (Gautam, 2000). Many smallholder farmers in Kenya have little influence on their farming situation, a condition that leads to apathy (GoK, 2003). Therefore, the main objective of agricultural development should be to change this situation. This is because smallholder agriculture has the highest potential for realizing the needed agricultural development in Kenya (GoK, 2003). Traditionally, most of agricultural services for the smallholder farmers are provided through public institutions (Anandayayasekeram et aI., 2001). As a result of on-going economic structural adjustment programmes (SAPs), most of the publicly provided services have been withdrawn with the assumption that the private sector will move in to fill the gaps created by government withdrawal (WB, 2001). However, contrary to the expectations of many, the private sectors are ve slow to move in and are very selective in their investments. Thus in many instances gaps ve been created in agricultural " service provision (Anandayayasekeram et aI., 2001). " As a result, in the recent past smallholder farmers in several developing countries have organized themselves as groups to address these problems (Beddington et aI., 1994).New approaches such as farmer field schools (FFSs) are being tested to improve the effectiveness and efficiency of disseminating technologies (Gautam, 2000). Towards further understanding of these emerging farmers participatory agricultural service delivery approaches the current study was conducted. 2 1.2 Problem Statement The small-scale farmers in Kenya continue to face poorer and more uncertain access to agricultural services (Muturi at al., 2001). Due to budgetary constraints, the Kenyan government has found it expensive and difficult to reach all small-scale farmers scattered allover the rural areas with adequate agricultural services. This situation is aggravated by the absence of sufficient incentives to lure the private sector to come in and fill the widespread gaps created by government's partial withdrawal and liberalization in provision of some agricultural services (GoK, 2003). This has resulted in inadequate and uncoordinated provision of agricultural services among many smallholder farmers in Kenya and consequently low agricultural productivity (Gautam, 2000). Agricultural produce markets in Kenya, and in particular those in which small-scale farmers are involved, face problems in adjusting to free trade and liberal economic policies (Muturi, et aI., 2001). Earlier research work such as one study conducted by Ombuki (1995) in Kisii District-Kenya also revealed that credit programmes offered through cooperatives did not reach the smallholder coffee farmers. Studies on women groups focusing on socio-cultural objectives particularly, on home economics and merry- go rounds are also common (Coppock et al., 2005; Muzaale and Leonard, 1982). However, little focus has been on the grassroots local initiatives' role in smallholder agricultural development (Taylor and Mackenizie, 1992; Anandayayasekeram et al., 2001). Therefore, the current study focused on the role of mixed-sex farmer groups in delivery of agricultural services. 3 1.3 Research Questions 1. What factors have influenced the formation of fanner groups in the study area? 11. To what extent have fanner groups assisted their members to access better and more agricultural services? 111. What are the key challenges constraining fanner groups from accessmg agricultural services in the study area? iv. Which policy recommendations would contribute towards improving smallholder fanners' access to agricultural services? 1.4 Research Objectives The broad objective of the study was to determine the role of fanner groups in enhancing fanners' access to agricultural services for improved livelihoods. Specific objectives of this study were: 1. To explore the factors that influenced the formation of fanner groups in the study area. 11. To determine the extent to which fanner groups have assisted their members to access better and more agricultural services. 111. To identify the key challenges constraining fanner groups from accessmg agricultural services in the study area. IV. To make policy recommendations that would contribute towards improving smallholder fanners' access to agricultural services. 4 1.5 Research Hypothesis The guiding hypothesis for this study was: Hol There is no significant difference in smallholder farmers' access to agricultural services before and after joining farmer groups. 1.6 Justification of the Study The ever increasing demand for food in Kenya calls for the concerted efforts towards increased agricultural productivity (GoK, 2003). The findings of this study will contribute to increased understanding of the role of farmer groups in delivery of agricultural services, with which a new optimism for local initiatives will emerge. Working through small groups, farmers will reduce costs of accessing agricultural services (FAO, 2002). Another category of beneficiaries of this study's fmdings include providers of agricultural services, that is; public, private sector and Non-Governmental Organizations who will incur lower costs while delivering agricultural services to small-scale farmers through farmers groups (GoK, 2001). The rationale behind the focus on farmer groups is that development can only be sustained if it takes place at the grassroots level, when the beneficiaries are fully involved in the decision making process (Chambers, 1983). The active participation of communities creates a sense of responsibility and ownership of the development process (Baron et aI., 1993). The study findings will assist rural development planners to align government policies with farmers' initiatives so as to attract maximum support inline with the current bottom-up approach in development; where community-based efforts in self- help groups are supported by relevant policies (Mbilinyi and Gooneratne, 1992). 5 The choice of the study area was prompted by the fact that there is a priority need to address the growing food insecurity problem in Kahuro Division (GoK, 2001). Agriculture is the main productive sector in the study area. Therefore, improving agricultural performance is therefore a sure strategy to raising the livelihoods of the majority populace in Kahuro Division (GoK, 2001). 1.7 Scope and Limitations of the Study Due to limited resources this study was confined to Kahuro Division and not the entire Murang'a District. Further, this study only focused on issues related to the economic roles played by farmer groups. The study also concentrated on three agricultural services. This is because the respondents identified marketing, extension education and access to farm credit as the most highly demanded agricultural services. This study excluded farmers who had not joined farmer groups and instead targeted smallholder farmers who were members of particular farmer groups. The study also limited itself to farmer groups that were registered as self-help groups under the Ministry of Gender, Children and Social Development. Registration gave farmer groups legal recognition and thus easily identified by the researcher from the above mentioned Ministry records. Misinterpretations of questions in the questionnaire used, due to reasons such as low education levels among some respondents, were eliminated through vernacular oral administration of the questionnaires by the researcher and data enumerators. 6 CHAPTER TWO LITERATURE REVIEW 2.1 Overview of Related Studies There is very little documented work related to the role played by farmer groups in delivery of agricultural services (Heemskerk and Wennink, 2004). Much of the earlier research (for example, studies conducted by Bager, 1980 and Ombuki, 1995) tended to concentrate on cooperative societies. Much of documented literature on women's groups activities tend to emphasize on socio-cultural issues such as health, education or income generating opportunities outside agriculture (Mutoro, 1997; Coppock et al., 2005). The reluctance of farmers to participate in any kind of group marketing can be explained by the negative experiences in many cooperative societies. Many of these cooperative societies have a history of financial and organizational mismanagement (Dijkstra and Magori,1994). Social capital in form of groups is used in communities worldwide, especially in rural areas, as safety nets to cope with risks and for mutual assistance (Davis and Negash, 2005). There are many types of groups in rural Kenya. Experiences by IFAD show that the involvement of farmer groups in provision agricultural services is a key factor in achieving smallholder agricultural development (lFAD, 2001). Therefore, the researcher focused on role played by farmer groups in delivery of agricultural services for improved livelihoods of the smallholder farmers. 7 2.2 Emergence of Farmer Groups A number of farmer groups emerged, with varying origins (including from the collapsed cooperatives) but all attempting to operate in principles of collective self-help while avoiding negative aspects of cooperatives (pretty, 2003). There has been remarkable increase in the number of farmer organizations other than cooperatives in Kenya as the economy continues to be more liberalized (GoK, 2003). Much of the task of providing agricultural services will have to be done through farmer groups because of the inability of Government to effectively do so and absence of a strong private sector (Heemskerk and Wennink, 2004). Farmer groups appear to have found a more permanent niche and do undertake all the activities of cooperatives (Kingma et aI., 1997). Farmer groups are generally smaller than cooperatives, less bureaucratic in procedures and more autonomous from government's influence (Mulwa, 2004). One difference with the cooperatives is that farmer groups limit the size of their membership. Small groups of 20-30 members maintain a greater sense of solidarity and mutual responsibility (ASSP, 2004). In small groups farmers can share information and experiences freely and thereby learn from one another (JICA, 2004). .Before group formation it is essential that the problems are identified first. The secret of solving a problem is proper identification of the problem (Chambers, 1983). It cannot be taken for granted that just because farmers engage in a few agricultural practices together, it will be easy and natural for them to organize and operate farmer groups. FAO (1998) 8 noted that it requires time and patience to organize farmer groups. Besides, there are very few organizations that have the time to facilitate such grassroots organizations. However, the role of group promoter in the formation of farmer group should be that of facilitation only and not dictating what is to be done by the group (JIeA, 2004). The present research explored the factors that influenced formation of farmer groups in the study area. 2.3 The Role of Farmer Groups in the Delivery of Agricultural Services Abdulazim (2000) carried out a study focusing on farmers in Landcare groups in Bathurst District of New South Wales, Australia. The fundamental theme of his research was to develop an essential understanding of the farmers and grazers' attitudes and behaviour change in response to different extension approaches. His study revealed that Landcare groups did not bring any change to farm practice. While Abdulazim's study focused on farmer groups formed through top-down approach (initiated by the Government) in a developed country, the current study concentrated on groups that are largely farmers' initiated in a developing country. FAO (1998) carried out a study in the Western Province of Zambia on empowering women through farmers groups. The focus of the research was on group development process and its effect on participants' access to extension services. FAO's study revealed that group formation had indeed increased access to agricultural extension services for group members. While FAO's study tended to be limited to extension services, the present study included the role of farmers groups in enhancing access to other agricultural services such as marketing and farm credit services. 9 Davis and Negash (2005) examined the effects of gender and wealth on participation in community groups in Meru Central District, Kenya. They sought to assess and determine whether differences exist in information access and diffusion by men and women farmers. Their study found out that gender, household composition and age affected participation in community groups. Wealth did not have any significant effects on participation in community groups. Their study covered a wide variety of community groups such as clan groups, water groups, church groups, merry-go-rounds and dairy- goat farmer groups. In contrast, the current study concentrated on the role of farmer groups in delivery of agricultural services only to allow deeper analysis on the same. In many parts of rural Kenya, smallholder farmers continue to face marketing problems. This is caused largely by the fluctuating nature of many agricultural produce prices (Muturi et al., 2001). Dijkstra and Magori (1994) reported on horticultural studies conducted in Kisii, Nyamira, Nyandarua and Taita Taveta Districts. The studies comprised of two surveys, namely a farm and a trade survey. The farm survey aimed at estimating farm produce revenues both in absolute terms and in comparison with other sources of income. In addition, sales arrangements and farmer-trader relations were investigated. The trade survey aimed at estimating gross trade margins and net trade profits at different marketing levels. Moreover, marketing policies and trading practices were investigated in order to judge the performance of the marketing systems. Dijkstra and Magori (1994) reported that cooperative marketing of horticultural produce by groups of farmers was very rare in Kenya. Further they noted that there was scanty 10 reliable marketing information for farmers and that the number of middlemen had dramatically increased. They also noted that active participation of the government in the marketing of agricultural products was marginal. Horticultural marketing in Kenya is left in the hands of private traders. The trade requires high degree of flexibility which is suited for private entrepreneurs than to bureaucratic government- owned institutions. Many horticultural farmers preferred selling their produce through middlemen, who would pay a lower price but promptly (Dijkstra and Magori, 1994). Dijkstra and Magori (1994) also reported that in the face of cartels of middlemen and with virtually no reliable market information, majority of smallholder farmers are left with very little market power. They are therefore, obliged to accept whatever prices are offered for their farm produce. While the two surveys conducted by Dijkstra and Magori focused on traders, the focus of the present study was farmers. However, it is important to note that farmers can also be traders as they engage in selling their own produce. Since then, the farmers' perceptions on group marketing of horticultural produce might have changed. This study explored the possibility of organizing smallholder farmers to market their produce collectively. Production and marketing must be regarded as complementary actions. In Kenya, the need for food marketing has tremendously increased since an expanding proportion of the population is unable to produce their own food. This is partly due to rural-urban migration and development of sectors of the economy other than the agricultural sector (Muturi et aI., 2001). Muturi et al. (2001) conducted a study aimed at assessing the roles of agricultural marketing for smallholder farmers in Kenya. The study was undertaken in Kirinyaga, 11 Meru and Maragua Districts, in the highlands of central Kenya. The study indicated some areas that appeared to be bottlenecks in the study area: market information, use of farm inputs, in particular certified seeds; storage; transport and farmer organizations. Commenting on farmer's access to farm credit, study noted that farmers' knowledge of issues related to agricultural credit was almost non-existent except in Kirinyaga District. Farmers in Maragua and Meru Districts listed lack of information as the main reason for not accessing credit, followed by fear of running into debt. While their study concentrated on marketing as one of the incentive that farmers require in order to increase their production, the current study included other agricultural services such as farm credit and extension services. Ombuki (1995) conducted a study in Majoge Chache Location in Kisii District. His study revealed that most credit programmes offered through formal cooperatives did not reach the small-scale coffee farmers in the area and whenever they did, they did so at the wrong time. Muthoni (1998) carried out a study in Kandara Division of the then Murang'a District. Her study also revealed that fmancial constraints resulted in low use of farm inputs by many smallholder farmers in the area. The current study aimed at finding out whether farmers' access to farm credit had improved when farmers work in groups. Apart from delivery of agricultural services to members, farmer groups aim to attract private and public agricultural service providers to work in their areas of operation. There is need for locality specific coordination of activities that ensure that agricultural services are made available within an area. The essence of such coordination of activities is the establishment of linkages between input suppliers, financiers; research and extension 12 service providers. Coordination ensures that each of the above agricultural services providers can invest in the area, confident that the complementary services that farmers need to make profitable use of their services are indeed available (FAO, 1998). Improved access to agricultural services is a prerequisite in promoting agricultural production and development. Farmer groups have the potential of enhancing smallholder's access to agricultural services. However, research by FAO showed that establishment of sustainable farmer groups has been difficult (FAO, 1998). 2.4 Challenges Facing Fanner Groups Onduru et al. (2002) reporting on farmer groups in Western Province of Kenya noted the problem of over-dependency on 'handouts' from the donors. Strong top-down sponsorship of farmer groups by external donors tended to weaken allegiance of the leadership to the members. Leaders of groups that over-depend on 'handouts' from donors tend to respond to the directives of their paymasters as opposed to the wishes and aspirations of the members (Onduru et al., 2002). Coppock et al. (2005) conducted a study on women groups in arid Northern Kenya focusing on how groups were formed and governed and what activities they pursued. Their study revealed that the greatest threat to the sustainability of women groups in Northern Kenya came from external factors such as drought, resource scarcity, poverty and political incitement as well as internal factors such as unfavourable group dynamics and illiteracy. 13 Muzaale and Leonard (1982) carried out a study on women groups working with agricultural extension advisors in three districts in Kenya namely: Baringo, Busia and Taita Taveta. The main theme of their study was to assess women's impact in food production and malnutrition. Their study found out that women groups suffered the problem of withdrawal of membership during prolonged periods of drought leaving only famine-resilient members. Women operating with fewer resources were particularly exposed to seasonal stress as they were required almost throughout in their farms at certain seasons such as planting and harvesting periods. For such women participation costs in their groups were high in terms of time and labour. Problems that have led to the collapse of grassroots organizations include hijacking of organizations from above. There is often a tendency by more powerful; better connected members of the group to hijack leadership and thus end up reaping more benefits as compared to the rest of the members (Bergdall, 1993). In the present study recommendations on measures that can be taken to curb such leadership problems are identified in order to enhance smallholder farmers' access to agricultural services through farmer groups. 2.5 Policy -Oriented Measures towards Improving Access to Agricultural Services In order to fulfill the millennium development goal on reducing rural poverty by 50% by 2015, access to agricultural services by smallholder farmers becomes a must (Heemskerk and Wennink, 2004). The overall challenge for agricultural development in Africa remains to improve and coordinate provision of agricultural services (Knox et. al., 2004). 14 Links can be illustrated by interdependence between the different agricultural services that farmers require (IFAD, 2001). IFAD (2001) noted that effective demand for purchased inputs will be higher where credit is available and farmers have access to relevant research and market facilities. Loan repayment will be higher where there are reliable markets and research will have greater impact where there is strong extension system to promote its fmdings. Sustainable and coordinated access to agricultural services by numerous smallholder farmers is likely to be achieved through activities of farmer groups (Anandayayasekeram et aI., 2001). Legislation and the registration of groups is a condition for the mobilization of social capital at community level (WB, 2001). Farmer groups can only be empowered if government, as a neutral player spearheads the community empowerment process and ensures that all external interventions are aligned with local priorities. Farmer groups can only flourish in an environment with proper climate for group development and in a society in which groups are encouraged to speak and sure to be listened to (IFAP, 1990). With the change from the linear transfer of technology model (research- extension- farmers) agricultural research practitioners now accept that communities have considerable capacity to plan and implement programmes. True farmer participation in research and extension priority setting can only take place through strong farmer groups that are accountable to their members (Heemskerk and Wennink, 2004). Establishment of sustainable farmer groups becomes a priority. Such efforts need to be complimented by 15 strengthening and empowering all local planning bodies, public and private service providers, but also by mechanisms that avoid politicization of farmer groups (Heemskerk and Wennink, 2004). Based on fmdings of the current study some recommendations have been made that would contribute towards improving smallholder farmers' access to agricultural services. 2.6 Gaps in Literature Both public and private sector research and extension prefer delivering agricultural services through farmer groups (JICA, 2004). Since the 1990s, there has been liberalization affecting the delivery of agricultural services (WB, 2001). The introduction of a free market in Kenya has led to the collapse of the cooperatives that had monopoly on agricultural produce marketing and input supply subsidized by the Government (GoK, 2007). The private sector is hesitant to provide agricultural services to the smallholder farmers scattered in rural areas due to bad roads (Anandayayasekeram et al., 2001). This study underscores the fact that establishment of more farmer groups will go along in narrowing the widespread gaps created in provision of agricultural services, particularly to the smallholder farmers. Studies on women groups focusing on socio-cultural objectives particularly on home economics and merry-go-rounds have been conducted (Muzaale and Leonard, 1982; Mutoro, 1997; Kamonji, 2003; Mituki, 2003; Coppock et aI., 2005). What has been rare is to fmd groups having their main focus on agriculture. While many studies concentrate on cooperatives and women groups, this study focuses on the role of farmer groups in delivery of agricultural services. 16 2.7 Conceptual Framework This study was based on the premise that poor delivery of agricultural services is to blame for low agricultural productivity (Figure 2.1). For instance, provision of agricultural extension services to individual small-scale farmers is often expensive and has limited coverage (WB, 2001). Financial institutions also find it unprofitable to offer credit facilities to individual small-scale farmers scattered in rural areas. High administrative costs for small volume loans are often cited as constraining financial providers from reaching scattered small-scale farmers (Anandayayasekeram et al., 2001). Inaccessibility to adequate agricultural services has led to low agricultural productivity and consequently low incomes and food insecurity. If farmers themselves would organize the collecting, transportation and selling their produce, they would be in a position to enjoy substantial profits, otherwise earned by the numerous, often unscrupulous middlemen (Muturi et al., 2001). Farmer groups facilitate group extension which is cost-effective thus enhancing greater interaction between members themselves, providing an opportunity to exchange beneficial experiences (Heemskerk and Wennink, 2004). Through group extension, farmers can better link up with agricultural extension services (FAO, 1998). Extension helps to structure farmers' existing knowledge and enable farmers to acquire specific knowledge related to certain problem solutions so that they can act on possible alternatives (Mati, 2005). 17 r.:~'1"~\l ii ~ f1 ,'~ .~~,;'; r \ S~LHOLDERFARMERS ~ 1 Delivery of Agricultural Services Delivery of Agricultural Services through Individual Farmers through Farmer Groups ~ ! Inaccessibility to Agricultural Access to Better and More Services Agricultural Services 1 1 Poor Crop and Livestock Better Crop and Livestock Husbandry Husbandry ~ 1 Low Productivity therefore Food High Productivity therefore Food Insecurity and Low Incomes Security and Increased Incomes ~ 1 Poverty and Underdevelopment Improved Livelihoods hence Sustainable Development Figure 2.1 Conceptual Framework Illustrating the Role of Farmer Groups in Delivery of Agricultural Services (Source: Author 2007) 18 When farmers access loans as a group, even the asset-poor farmers can access funds and thus increase agricultural production (Uphoff, 1986). Group loans enable lenders to benefit from lower costs of advancing credit through larger transactions and increasingly reliable demands for loans. Group loans reduce the lenders' cost of credit administration as credit supervision is passed to group officials (Clark, 1990). Sustained access to agricultural services by numerous small-scale farmers is likely to be achieved through the activities of farmer groups. Farmer groups have enormous potential to serve the collective interests of otherwise marginalized farmers, reducing the costs of agricultural services delivery to farmers (Pretty, 2003). Improved access to agricultural services through farmer groups will lead to increased agricultural productivity which directly enhances food security and improved livelihoods (Waterlow, 1998). 19 CHAPTER THREE RESEARCH METHODOLOGY 3.1 Study Area 3.1.1. Geographical Location and Size of the Study Area Kahuro Division (Figure 3.1) is one of the four divisions of Murang'a North District in Central Province of Kenya. It is bordered by Kangema and Mathioya Divisions to the North and Kiharu Division to the East. Kahuro Division is divided into four administrative locations namely Mugoiri, Kahuhia, Weithaga and Murarandia Locations. The Division's headquarter is at Kahuro shopping centre in Mugoiri Location. Other important market centres include: Kahatia, Kahuti and Karuri shopping centres, which serve as supply points as well as delivery points for agricultural inputs and outputs (GoK, 2001). 3.1.2 Physiographic and Natural Conditions The area experiences sub-tropical climate. There are two rain seasons, that is, March to May (long-rains) and October to November (short rains). The bimodal rainfall received in the area ranges between 900mm to 1400mm per annum (Jaetzold and Schmidt, 2006). The Eastern parts are drier than the western region that borders Kangema Division. Temperatures vary with altitude with the eastern parts being warmer than the western region. Temperatures experienced in the area range between 14°Cand 26°C (GoK, 2001). The larger part of the terrain is moderately steep but does not significantly affect settlement patterns. The area is well drained by several rivers and their tributaries (Jaetzold and Schmidt, 2006). 20 37"00' 0"45' WEITHAGA 4 MJRARANDIA KEY 2 0"45' C Division BO\8'ldaryc::J Locations # Division Headquarter NRoadS 1 Gakaki 5 Mirichu 2 Kamwea 6 Mukandu A 3 Kiriti 7 MukanguUnited WyE 4 Wanjengi 8 MukanguBio-banana s 5 0 5 10 Kilometers ~~~~~~~~~~~i 5 MARAGUA DISTRICT 37"00' Figure 1: Kahuro Division in Muranga North District showing locations of Farmer Groups in Focus Source: (Muranga District Development Plan, 2001) 21 3.1.3 Economic Activities Economic activities in the division are dominated by agriculture. Despite the rich resource base, the division has a perennial food deficit, which is mitigated by purchases from other districts in the country. There is urgent need to address the issue of declining food security in this area. Agricultural systems in Kahuro Division reveal a number of ways in which farmers strive to maintain agro-diversity ender conditions of extreme land scarcity. The high population pressure has led to over-cultivation of the scarce land resulting into declining crop yields and general land degradation. Over the years, this has resulted into excessive land fragmentation, hence reduction in land holdings. Low agricultural productivity and scarcity of alternative economic opportunities has made many families face chronic food scarcity and poverty. Intensive smallholder agriculture practiced in Kahuro Division is highly diversified as a strategy of avoiding overall crop failure. Mixed farming is widely practiced with dairy farming particularly, zero grazing becoming popular, as more and more land has come under permanent cultivation, leading to diminishing grazing land (GoK, 2001). Many smallholder farmers nowadays, tend to specialize in production of high value commodities such as horticultural crops and milk:.Food needs are scarcely met through purchase of staple food from local markets using cash obtained from the sale of horticultural produce and milk:. 22 Commercial activities in the area are dominated by retail businesses. The division has limited industrial activities, which are also largely agro-based such as tea and coffee factories. The area has an enterprising population that stands at 92,104, with a population density of 552 Sq. km. (GoK, 2001). According to a poverty assessment survey conducted in 2000, about 35% of the population in Kahuro Division is living below the poverty line (GoK, 2001). The most vulnerable groups to poverty included the women, children and the unemployed who mainly comprised of the youth. Improvement in agriculture will definitely uplift the livelihoods of the majority of the population in Kahuro Division because agriculture is their lifeline. 3.2 Research Design This study adopted a cross-sectional survey approach to determine the role of farmer groups in enhancing smallholders' access to agricultural services, thereby promoting improved livelihoods. This method enabled the researcher to extract both qualitative and quantitative data. Survey research is appropriate for generating data from a large sample of respondents within a short time (Mugenda and Mugenda, 1999). Quantitative research utilised in this study focused on a representative sample and then generalised the results to the population from which the sample was drawn. 3.3 Target Population The target population for this study was the smallholder farmers who had joined active farmer groups in Kahuro Division. At the time of data collection, there were about twenty 23 active farmer groups in Kahuro Division. Each Location had an average of five farmer groups, while every farmer group consisted of about 25 members (GoK, 2001). The accessible population included members of eight farmer groups existing in the study area. 3.4 Sample Size and Sampling Procedures Stratified random sampling was used to obtain the study sample for this study. To avoid spatial bias, location administrative boundaries were used to divide the study area into four zones. From each of the four locations, two farmer groups were purposively selected on the basis of their specialization on particular agricultural activities. The study targeted farmer groups specializing in a variety of agricultural activities such as horticultural cultivation, dairy farming and dairy goat keeping. The same number of farmer groups was picked from the four locations to form an appropriate sample. This could be justified because farmer groups were almost evenly distributed across four locations of Kahuro Division. Therefore, a sample comprising of 8 farmer groups was picked from a total of 20 farmer groups existing in the area. The farmer groups selected included Mukangu Bio- banana, Gakaki, Mirichu, Mukangu United, Kamwea, Mukandu, Kiriti and Wanjengi. Guided by the agricultural extension officers working in the area, the leaders of the 8 farmer groups selected were identified. Using membership lists, nine representatives from each farmer group were randomly selected (with the help of random numbers). This procedure yielded 80 respondents; which included leaders of the eight farmer groups. Farmer group leaders acted as key informants. Using snowball sampling procedure, the standardized questionnaire was administered to the 80 members of farmer groups. The 24 procedure started with the fanner group leader who identified the first member, and the latter was used to locate the home of the next member of their group (earlier randomly selected) from their neighbourhood. The obvious advantage of random sampling is that it ensured inclusion in the sample; of the representatives from the eight selected fanner groups. Random sampling was also adopted in picking the nine members from the eight selected fanner groups because this would allow generalization to the larger target population and could also allow the use of inferential statistics (Sproull, 1988). 3.5 Research Instrument and Nature of Data Generated This study utilized both primary data and secondary data. 3.5.1 Primary Data A semi-structured questionnaire (Appendix1) was used to extract both quantitative and qualitative primary data for this study. The questionnaire was used to generate data from the 80 members of fanner groups forming the sample of this study. Researcher- administered questionnaires enabled the interviewer to conduct interviews with the 80 respondents. Researcher-administered questionnaires were advantageous (over self- administered questionnaires) in that they enabled extraction of detailed data which could otherwise not have been possible. 25 Section one of the questionnaire aimed at obtaining the respondents' personal data such as: their age, sex, level of education and size of the land they owned. This data was useful in revealing the socio-economic characteristics of the respondents. Level of formal education was measured in terms of the highest level of formal education attained by the respondents. The dependent variable in the study is access to agricultural services by members of farmer groups. Data extracted in the second part of the questionnaire included the factors that led to the formation of farmer groups. The respondents were asked to explain why and how their respective groups were formed. The respondents were also asked to provide more data related to the core functions of various farmer groups, leadership, membership and sources of funds. This data was useful in assessing the strengths and weaknesses of these farmer groups. The third section of the questionnaire was used to generate data on farmers' access to agricultural services after joining the farmer groups. Data about the sources, relevance and uses of agricultural services acquired was obtained. This data helped in assessing the role of farmer groups in the delivery of agricultural services; which was the underlying theme of the study. The last section focused on extracting data related to challenges that farmer groups faced with a view to promoting interventions for the same. The respondents were required to state the challenges facing their farmer groups. Data obtained in this section particularly on the possible solutions suggested by the respondents was incorporated in the 26 recommendations made to strengthen the farmer groups. The aim was to make farmer groups more effective in improving members' access to agricultural services and thus improving their livelihoods. 3.5.2 Secondary Data In addition to the primary data, this study also made use of secondary data. Secondary data collected included literature on farmers' access to agricultural services, group dynamics, food security and rural development in general. This data was extracted from scholarly journals by organizations such as FAO and World Bank, published and unpublished theses, papers presented at various conferences, plus various government publications such as Murang'a Development Plan, 2001. The documents were obtained from the Internet, public universities' libraries and other institutional libraries such as Kenya Agricultural Research Institute (KARI). 3.5.3 Pilot Survey Before embarking on the actual task of primary data collection, a pilot survey was carried out to test the reliability and validity of the research questionnaire used. Reliability is the measure of the degree to which a research instrument yields consistent results or data after repeated trials. On the other hand, validity is the degree to which results obtained from the analysis of the data actually represent the phenomenon under study (Marshalls and Rorsman, 1995). 27 Five members of various farmer groups and one leader of one group which had similar characteristics as the study population were picked to form the pilot sample. However, those who were included in the pilot survey did not form part of the sample for the actual study. The pilot survey was used to test on a number of design aspects and to familiarize the researcher with the questionnaire. During the pre-testing of the instrument, the researcher was able to assess the two research assistants' ability to perform the task. Finally, permission was sought from the relevant authorities including the four chiefs in charge of the four locations covered by the study. 3.6 Data Generation Procedures The researcher administered the 80 questionnaires with the help of two trained research assistants, who were university graduates with thorough knowledge of the area of study because they hailed from that locality. The two were trained on how to ask questions and how to probe for answers. Every item in the questionnaire was discussed to ensure correct interpretations of the questions. The local language, that is, Kikuyu, was used during the interviews to ensure common understanding among the respondents. Identification accompanied with proper introduction explaining the purpose of the study helped to create a relaxed rapport with the respondents. To win the respondents' confidence and trust, the researcher assured the former of the confidentiality of their responses. To create a good rapport between the researcher and the respondents, the former had to make the latter to feel that taking part in the exercise was worthwhile. 28 Researcher-administered questionnaires were more flexible compared to self- administered questionnaires because the interviewer could adapt to different situations and get the required information. Researcher -administered questionnaires had distinct advantage; they were more personal in nature and the researcher could easily gauge the validity of the responses through interviewees' body language and facial expressions. Probing questions helped to establish the depth and validity of responses. Administering questionnaires in the farmers' own homes facilitated more relaxed conversations. It also offered the interviewers the possibility to learn more about the respondents from observing them in their own farms. The choice of the exact interviewing location can make a difference. Interviewing the people in their own 'territory' that is, their own home, can facilitate a more conducive atmosphere and more balanced responses (Kings, 1969). Appointments through prior visits to the respective respondents on when to see them were made to determine their convenient time. The above procedures and precautions enabled collection of relatively reliable primary data on the role of farmer groups in delivery of agricultural services in Kahuro Division. 3.7 Data Analyses Procedures Data analysis for this study was done using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer packages. The raw data from questionnaires was first cleaned, coded and grouped into themes consistent with the study objectives. Coded data was entered into a Microsoft excel worksheet and imported into statistical package for social sciences (SPSS) for analysis. To determine various relationships among 29 selected variables, descriptive statistics such as frequency distributions and percentages were applied. A Chi- Square was performed to test and compare the relationship between members' access to agricultural services before and after joining farmer groups. The researcher sought to test the hypothesis that 'there is no difference in members' access to agricultural services after joining farmer groups using the three agricultural services highly demanded by members namely: extension, marketing and farm credit facilities. Chi-Square compares the proportion observed in each category with what would be expected under the assumption of independence between two variables. To determine the significance of the test, the obtained Chi-Square value was compared with the critical or the table value. If the obtained value is greater than the critical value, the null hypothesis is rejected; and if the calculated X2 is less than the critical value, the null hypothesis is accepted. To apply Chi- Square, the following considerations should be observed (Kothari, 1996): 1. The frequencies must be absolute and not percentages or proportional values 11. The expected frequency in any category must not be less than 5 111. The null hypothesis must not permit zero entries in the expected categories 30 Chi- Square is defined by the formula X2 =L (0- E) 2 (Source: Kothari, 1996) E Where: X2 = Chi- Square value o = Observed frequencies E = Expected frequencies L = Summation The degree of freedom = (r-1) (k-1) Where r = Number of rows in the tables k = Number of columns in the tables The degrees of freedom are important because the probability of obtaining a specific Chi- Square depends on the number of cells in the table. A test of significance helps the researcher to determine whether the obtained results truly hold at any given confidence level. 31 CHAPTER FOUR RESULTS AND DISCUSSIONS 4.1 General Characteristics of the Sampled Population Eight farmer groups in Kahuro Division, Murang'a North District were the focus of this study. These were: Mukangu Bio-banana, Gakaki, Mirichu, Mukangu United, Kamwea, Mukandu, Kiriti and Wanjengi. A total of 10 farmers from each farmer group were picked, forming a total sample size of 80 respondents 4.1.1 Gender of the Household Heads Approximately 62% of households interviewed were headed by women, while 38% were headed by male (Figure 4.1). This can be explained by the fact that agriculture is becoming predominantly a female sector as a consequence of faster male out-migration (Peacock et. al. 2004). In Kenya, about 86% of smallholder farmers are women (GoK, 2003). Female 62% Male 38% Figure 4.1: Household Head Gender (Source: Author's Survey 2007) 32 4.1.2 Age and Marital Status of the Respondents A large proportion of the farmers (48%) were aged between 51 and 60 years, about 23% were aged between 41 and 50 years and only 13% were aged below 30 years (Figure 4.2). The small number of young farmers (under 40 years) was the result oflack of interest in agriculture among the youth in the study area (GoK, 2001). 51-60 Years 21-30 Years 31-40 Years 41-50 Years o 5 10 15 20 25 30 Frequency (%) 35 40 45 50 Figure 4.2: Age of the Respondents (Source: Author's Survey 2007) Majority of the respondents (70%) were married (Figure 4.3). Approximately 14%, 10%, and 6% of the respondents were widowed, single and divorced! separated respectively. The latter categories had a huge task of rising up their families single-handedly. They mainly relied on small-scale agricultural enterprises for survival and thus the need to pull their resources together and form groups. 33 Windowed 14% Divorced! Seperated 6% Single 10% Figure 4.3: Marital Status of the Respondents (Source: Author's Survey 2007) 4.1.3 Education Level of the Respondents Majority of the respondents (64%) had primary education (Figure 4.4); while only about 6% had attained post-secondary (tertiary) level. Tertiary Level Secondary Level Primary Level No Formal Education o 10 20 30 40 50 Frequency (%) Figure 4.4: Education Levels of the Respondents (Source: Author's Survey 2007) 60 70 Fonnal education broadens the outlook and knowledge of the fanner and thus educated fanners are more receptive to innovations (Uphoff, 1996). Majority of the respondents 34 were literate and therefore more inclined to embracing the idea of organizing themselves into groups in order to enhance their access to agricultural services. 4.2 Formation of Farmer Groups in Kahuro Division 4.2.1 Features and Composition of Farmer Groups All the eight farmer groups interviewed are composed of both men and women, but youths were extremely few. Purposively, one committee member from each of the eight farmer groups was interviewed, while the rest (90%) were ordinary members. Majority of these farmers (60%) have been members of the group for over five years (Figure 4.5). 3-5 Years 31% 1-2 Years 9% Figure 4.5: Duration of Membership to Farmer Groups (Source: Author's Survey 2007) Five out of the eight farmer groups namely: Kamwea, Mukandu, Mirichu, Wanjengi and Kiriti were initiated by the farmers themselves, Mukangu Bio-Banana Group was formed out of a Non-Governmental Organization's initiative, Gakaki was Government-initiated; while Mukangu United was initiated by a private company (Figure 4.6) . 35 Private Sector 13% N on-Govemrrental Organizations 13% Govemrrent 12% Fanners Insative 62% Figure 4.6: Source of Initiative to Form Farmer Groups (Source: Author's Survey 2007) According to all respondents interviewed, leaders (committee members) were democratically elected by the members themselves. Membership to these farmer groups was also voluntary as recommended by JICA (2004). Six out of the eight groups (75%) comprised of 21- 30 members each, while 25% had over 30 members each. These farmer groups had restricted their recruitment of new members in order to maintain their preferred small sizes of an average 25 members. A stable membership promotes continuity of particular farmer groups. Valuable time is lost when a constant stream of new members has to be inducted into the groups (JICA, 2004). Interviewees reported that applicants to various farmer groups were carefully screened based on their character, trustworthiness, cooperation and aptitude to be a team player. These farmer group members' responsibilities included attending meetings, actively supporting group's activities, and making periodic contributions as agreed upon. Four of 36 the Farmer Groups interviewed (Mukangu Bio-banana, Gakaki, Mirichu and Mukangu United) reported that they had monthly meetings, three groups namely (Kamwea, Mukandu and Kiriti) met fortnightly, while one group (Wanjengi) met once annually. Frequent meetings enhance cohesion and performance of groups (Oyster, 2000). All respondents stated that their source of funding was mainly from their periodic contributions and registration fees by new members (Figure 4.7). Members contributing resources is a good indicator of their commitment to their groups. Only few respondents indicated that they had received funds from external sources, particularly from NGOs operating in the area. Loans o 20 40 60 Frequency (%) 80 100 Donations / Grants RegistrationFees Member's ContrIbution rJ Yes DNo Figure 4.7: Source of Farmer Groups' Funding (Source: Author's Survey 2007) 37 4.2.2 Farmer Groups' Objectives Majority of the farmers (75%) indicated the desire for increased incomes as their main driving force behind joining farmer groups (Figure 4.8). It was noted that members of the eight farmer groups engaged in diverse income-generating enterprises, which had helped them improve their food security situation and had enabled them meet other fmancial obligation such as educating their children. Improve Access to Agricultural Services Increase Food Production Desire fur Increased Incomes o 10 30 70 8020 40 50 60 Frequency (%) Figure 4.8: Objectives of the Farmer Groups (Source: Author's Survey 2007) Approximately 50% of respondents stated that they had joined various farmer groups in order to increase food production from their small farms. Like majority of Kenyans, these respondents were facing the challenge of food insecurity, hence the need for increased~ food production. However, this study revealed significant changes that the smallholder farming community had undergone. In many parts of Kenya, this sector is progressively shrugging off its status of subsistence farming and feeding the regional market economy (GoK, 2003). By catering for the urban population, food crop farming is becoming profitable, embodying the predominant agricultural trends (peacock et al., 2004). 38 About 25% of the respondents had joined the farmer groups due to the need to improve their access to agricultural services and innovations. These results are in agreement with findings by FAO (1998) which underscored the fact that agricultural services are essential for increased adoption of innovations and commercialization of smallholder agriculture. 4.2.3 Farmer Groups' Core Activities The study observed that 3 farmer groups (Gakaki, Mirichu and Mukangu United) comprising of 38% of the respondents had specialized in horticultural farming (Figure 4.9). The main horticultural crops grown included improved bananas varieties, french beans, kales, cabbages and passion fruits. Horticulture and Dairy Goat Farming ~~ Dairy FarmiI]g Dairy-Goat Fanning ~~_ Horticultural Fanning o 5 10 15 20 25 Frequency (%) 30 35 40 . Figure 4.9: Farmer Groups' Core Activities (Source: Author's Survey 2007) It was observed that 7 out of 8 farmer sample groups tended to specialize in one agricultural enterprise as its core activity. These activities were carried out by members on their individual farms. Some of the farmer groups had common demonstration farms that were offered voluntarily by members who owned relatively larger parcels of land. 39 Each farmer group engaging in dairy- goat keeping had organized to have one of its members as the custodian of the high-breed (German Alpine) buck owned by the whole group. Dairy goat keeping and dairy farming were also popular, each having two farmer groups engaged in these enterprises. These fmdings were in agreement with FAO's experiences that supported the view that focusing on a single activity initially affords farmer groups leaders the opportunity to polish their collective activity management skills before taking on additional tasks (FAO, 1998). Moreover, economies of scale are more difficult to realize under conditions of diversity; nevertheless; when a particular group's activities compliment one another, they may improve on the group's performance (Mutoro, 1997). 4.2.4 Factors Influencing the Choice of Farm Enterprises The study revealed that the choice and adoption of various farm enterprises was influenced by various factors. The 'most important' factor was marketability of farm produce (60%) of the respondents (Figure 4.10) and subsistence needs (33%). Pressing financial needs explain why marketability of farm produce has an important influence on the farmer's decision on what to produce. Muturi (2000) observed that farmers need to engage in farm enterprises that generate cash for essential household requirements such as payment of school fees, clothing and medical expenses. It was noted that about 14% of the respondents was influenced by their neighbours to adopt certain kinds of farm enterprises. 40 Less Important ~ S r//////////////////. ~/, >. I I , , I I l't"1 I , ~ . ",,·,'.W""iWj '.'::.' I. ' I ' f f I ' t J t f t f ~ J , t I f I ' J I II >',;)J I I I I', I , . , f I f I , , I . I f I , f , r f I I I Average Important Most Important o w ~ 00 W Frequency (%) E3 Extension Officer's Advice r2I Neighbour's Influence IIj Availability of Farm Inputs o Subsistence Needs o Marketability of Produce Figure 4.10: Factors Influencing Farm Enterprise Choice (Source: Author's Survey 2007) This study observed that even though it would be more profitable to grow food for sale, some smallholder fanners still continued to use their fields for production of subsistence food crops. The reason given was that sometimes, the market was undependable. Availability of farm inputs was rated as 'important' factor influencing choice of enterprise by 45% of the respondents. For instance, dairy goat farming was popular among the farmer group members who could not rear cattle due to lack of enough space on their small plots (Figure 4.11). Land is the basis for the farmer group's activities and therefore portrayed as a source of livelihood; thereby epitomizing a community's well- being in Kahuro Division (GoK, 2001). Majority of the respondents (89%) owned small farm holdings, ranging between 1 - 3 acres. About 64% of the respondents owned an average 1 - 1.9 acres, while 25% owned 41 2 - 2.9 acres (Figure 4.11). Only 4% of the respondents were reported to own above 3 acres of land. The rapidly increasing population confronted with a diminishing resource base had resulted in severe land degradation in the area. Over-cultivated soils have led to perpetual decline in agricultural productivity and many families faced the threat of chronic food insecurity (GoK, 2001). >3 Acres 2-2.9 Acres "- 1-1.9 Acres o 10 20 30 40 Frequency (%) 50 60 70 Figure 4.11: Sizes of Land Owned by Kahuro Residents (Source: Author's Survey 2007) The mam staple foods purchased to supplement the respondents' households food requirements were (Figure 4.12) beans (86%), maize (84%), vegetables (77%) and maize flour (72%). 42 Potatoes Others Rice Maize Flour Vegetables Maile Beans 30 40 60 70 80o 10 20 50 Frequency (%) Figure 4.12 Priority Staple Foods Purchased in Kahuro (Source: Author's Survey 2007) Approximately 80% of the respondents stated that they experienced food shortages. When asked about how they viewed food security situation in this area, majority of the respondents (70%) rated it as poor (Figure 4.13). Poor 70% Fair 21% 90 Figure 4.13: Rating of Food Security in Kahuro (Source: Author's Survey 2007) 43 4.3 Effects of Farmer Groups on Agricultural Services Delivery The second objective sought to find out whether members' accessibility to agricultural services had changed after joining their respective farmer groups. The study focused on three agricultural services namely; marketing, agricultural extension and financial services. 4.3.1 Marketing Services The main farm produce sold through the farmer groups were milk (25%), bananas (25%), french beans (25%), and dairy goats (12.5%) among others (Figure 4.14). While bananas were mainly sold locally, french beans were mainly produced for the export market. Fruits sold through the farmer groups included mangoes and avocados, while other vegetables were mainly kales and tomatoes. Others Vegetables Fruits I IDairy Goats -I Milk I(,1 French Beans I , , Bananas I o 5 10 15 20 25 Frequency(%) Figure 4.14: Main Farm Produce Sold through Farmer Groups (Source: Author's Survey 2007) 44 Members of the farmer groups reported that there was a strong linkage between the quality and prices offered for these horticultural produce. For instance, it was reported that quality standards for the exported produce are very high, thereby necessitating marketers to undertake extension services in order to achieve the desired standards. The main marketing channel as reported by 87% of the respondents was though their farmer group (Figure 4.15). Fanner Groups 87% -----~ Brokers I MXldlemen 5% Others such as Neighbours 1% Personal SeDlingin Local Markets 7% Figure 4.15 Marketing Channels for Horticultural Produce (Source: Author's Survey 2007) There were a number of private companies and NGO's involved in the marketing of horticultural produce. For instance, Nicola Farm Company specialized in marketing of french beans while Techno Serve Company purchased bananas from farmer groups. It was reported that fruits and vegetables are mostly sold through middlemen and personal selling at the local market centres. Muturi et al. (2001) reported that the distance to markets and the road infrastructure are the main factors that influenced the choice of marketing channels. 45 One of the farmer groups specializing in dairy farming (Wanjengi) seemed to be highly organized as far as marketing of milk was concerned. This particular farmer group had enabled dairy farmers to market their milk collectively using their own means of transport. The study revealed that 90% of members engaged in dairy farming were selling their milk through the farmer groups (Figure 4.16). Fanner Groups 90% -------~~---. LocalHotels 6% Other Outlets ---(Neighbours) 1% Figure 4.16 Milk Outlets used by Dairy Farmers (Source: Author's Survey 2007) However, a small portion of farmers (7%) reported that they sell their milk to the local hotels and neighbours. The few members who preferred selling their milk through alternative outlets cited pressing financial needs that required immediate cash as the reason for their move. Respondents' views were sought concerning change in access to marketing services after joining their respective farmer groups. Majority of the respondents (74%) reported that 46 their access to marketing services had improved after joining their respective farmer groups (Figure 4.17). Better o 10 20 30 40 50 Frequency (%) 60 70 80 Worse NoChange Figure 4.17 Farmers Access to Marketing Services Source (Author's Survey 2007) Farmers were asked to identify and rate their sources of market information starting with the most important to the least important. The 'most important' source of market information as reported by 55% of the farmers was traders and their personal visits to the local market (Figure 4.18). Electronic media, mainly local radio stations also played an 'important' role in passing on market information as reported by 40% of the respondents. About 33% stated that they occasionally derived market information from their fellow farmers, while 25% of respondents rated agro-input dealers as 'important' sources of market information. Print media including newspapers and books was rated the 'least' important source of market information by about 75% of the respondents. 47 Most Important Important Average Important Less Important Least Important 20 60o Frequency (Oft») 40 ~ Newspapers and Print Media I!]Television and Radio EJ Other Farmers / Neighbours E3 Agro-Input Dealers iii Traders / Personal Market Visits '------------ 80 Figure 4.18: Sources of Market Information (Source: Author's Survey 2007) 4.3.2 Extension Services All the 80 respondents reported to have ever been visited by agricultural extension personnel whether public or private. The main source of extension service as reported by 53% of respondents was the Government (Figure 4.19). These results concurred with the findings of a study conducted by Davis and Nagash (2007) in Meru District which reported that the government was the most important source of information for dairy-goat fanner groups. This study further noted that the dairy-goat project illustrated an effective partnership between the public and private sectors, where NGOs provided the funds and the Ministry of Agriculture provided personnel. 48 OtherSources such as Charitable Organizations 14% Non-Govermnental Organizations 15% PrivateSector 18% PublicSector 53% Figure 4.19: Main Source of Extension Advice (Source: Author's Survey 2007) Private companies operating in Kahuro Division such as Nicola Farm Company; had extension programmes related to the inputs they supplied or farm products they were marketing. IFAD (2001) noted that agro-processing and marketing firms provide agricultural extension services to their target farmers as a means of reducing input supply risks. Input suppliers of seeds, agricultural chemicals, farm equipment, livestock feeds and veterinary service providers also incorporate agricultural extension as their marketing strategies. The methods they use to recoup the cost of extension provision vary considerably from input suppliers incorporating the costs into the price of their products to direct charges for services rendered by consulting firms. However, one major shortcoming of such private extension agents is that they often serve the interests of their firms, which may not be necessarily the farmers' interests (Anandayayasekeram et al., 2001). Members of farmer groups interviewed were asked to give their views about extension advice, either on crop and livestock management they had received. About 73% of the 49 respondents felt that the quality of extension services had improved after joining the farmer groups (Figure 4.20). Majority of members of farmer groups interviewed reported that public agricultural extension workers visited their groups on demand. However, on average the number of visits made by agricultural extension workers had risen from barely any (before joining the farmer group) to about six visits annually (after joining the group). Farmers also added that the extension advice they received was relevant to their farming needs. The extension advice received was largely on modem farming methods as dictated by respective groups' farming enterprises. Worse o 10 20 30 40 50 Frequeocy(%) 60 70 80 No Change Improved ,,' Figure 4.20: Farmers Access to Extension Services (Source: Author's Survey 2007) Farmer who specialized in crop farming reported to have received extension advice on: irrigation techniques (38%) for horticultural crops such as french beans; crop cultivation techniques (25%); harvesting and storage methods (23%) - especially for vegetables and fruits due to their perishable nature (Figure 4.21). Other forms of crop management training received by farmers through farmer groups included soil fertility management and utilization of various crop varieties (7%). 50 o 5 10 15 20 25 30 35 40 Frequency (0/0) Utilization of Various Crop Varieties Soil Fertility Management Harvesting and Storage Methods Crop Cultivation Techniques Irrigation Techniques Figure 4.21: Crop Management Training (Source: Author's Survey 2007) Livestock farmers in vanous farmer groups reported to have received training on livestock management. For instance, farmer groups that had dairy-goat farming as their main activity were advised on dairy- goat management. Majority of the farmers (60%) received training on livestock breeding techniques (Figure 4.22). Still, about 33% of livestock farmers have received training on better ways to manage fodder; while 7% were trained on livestock disease prevention and control. The respondents reported that the extension advice received was useful in improving agricultural productivity. 51 o 10 20 30 Frequency (%) 40 50 60 AniIml Fodder Marageneot Livestock Dsease Maragerrerr Livestock Breeding Tecbnques Figure 4.22: Livestock Management Tmining (Source: Author's Survey 2007) 4.3.3 Financial Services Agricultural credit is a key to facilitating input in agricultural development (Ombuki, 1995). The inevitable commercialization of subsistence agriculture and the adoption of improved technologies require the use of extra financial resources beyond smallholders' personal savings (FAO, 1998). NGOs operating in Kahuro Division were the main source of farm credit, particularly in form of supplying inputs to members of the farmer groups. Majority of the respondents (73%) reported that they had received some form of financial assistance mainly from Non-Governmental Organizations (Figure 4.23). Other sources of fmancial assistance included micro-finance institutions and commercial banks. 52 Non-Govermnental Organzators (NGOs) 73% Micro- Finance Irntitutions 12% Other Institufuns 7% Figure 4.23: Source of Farmer Groups' Credit (Source: Author's Survey 2007) Majority of the farmer groups received financial assistance in the form of farm inputs (33%), while about 30% received improved dairy-goat breeds (Figure 4.24). It was reported that one farmer group involved in french beans (such as Mukangu United) had received financial assistance in form of farm inputs namely seeds and chemicals from agro-processing private company (Nicola Farm Company). Another farmer group (Mukangu Bio-banana) reported to have received tissue-culture banana plantlets on credit through a grant from Non-Governmental Organization (NGO) by the name International Service for the Acquisition of Agri-biotech Applications (lSAAA). The fmdings of this study concurred with the fmdings of Kithira (2004); who reported that NGOs were in the forefront in funding self-help groups in Meru Central District. 53 None 15% Cash 13% Farm Inputs includingFertilizers and Seeds 33% Dairy GoatBreeds 30% Figure 4.24: Modes of Financial Assistance (Source: Author's Survey 2007) Farm credit received by members of farmer groups was utilized it in various ways. About 41% of the respondents reported to have utilized farm credit acquired in restocking and buying better grades of livestock in order to improve agricultural productivity (Figure 4.25). About 30% of respondents had purchased farm inputs such as fertilizers and seeds. Bought Better Grade Stock Purchased Seeds Purchased Fertilizer None o 10 20 25 30 35 405 15 45 Figure 4.25: How Farmer Groups' Credit was Utilized (Source: Author's Survey 2007) Frequency (0/0) 54 Respondents' views were sought concerning any changes in accessing these financial services after joining their respective groups. About 42% of the respondents reported that access to credit facilities had improved after joining the group, while about 39% felt that they had not observed any change in accessing fmancial services (Figure 4.26). Even in situations where farm credit facilities were available, members of fanner groups cited fear of running into debt, and lack of information, as some of the reasons why they were not seeking financial assistance. Worse 19% Improved 42% No Change 39% Figure 4.26: Fanners' Access to Financial Services (Source: Author's Survey 2007) This study noted that availability of farm credit at reasonable rates of interest had enabled many fanner group members to purchase additional inputs such as seeds, chemicals and fertilizers. Timeliness of farm credit was also reported to have been enhanced by fanner groups according to the respondents' reports. Group lending had improved the borrowing rates among smallholder fanners who were earlier discriminated against due to lack of adequate collateral. It was noted that fanner groups had led to increased loan acquisition levels; and had also facilitated follow-up by lenders to ensure proper use of loans borrowed. Further, about 68% of the respondents observed that the conditions and 55 procedures of obtaining such credit have become less stringent after joining their respective farmer groups change. Overall, it was evident that the farmer groups have assisted their members to access better and more agricultural services. Majority of the farmers (60%) got improved access to marketing services, compared to 54% improved extension services and 41% improved access to credit facilities (Figure 4.27). On average, about 52% of members indicated that their access to the three agricultural services had improved after joining farmer groups. These results were also supported by the Chi- Square Test; whose calculated value was 21.08; which was greater than the critical value (8.52) at 0.05 significant level of confidence, with four degrees of freedom. Therefore, the null hypothesis that there is no change in the access to agricultural services before and after joining farmer groups was rejected, thereby confirming the research hypothesis that there was a change in farmers' access to marketing, extension and financial services after joining the groups. FinancialServces < Marketing Services AgriculturalExtension Serv£es o 20 40 60 80 Frequency (%) Improved r2t Not Improved Figure 4.27: Change in Accessibility to Agricultural Services after Joining Farmer Groups (Source: Author's Survey 2007) 56 The respondents were asked to rate the performance of their respective farmer groups in delivering the three agricultural services namely: marketing, extension and financial services. Majority of respondents (59%) rated their performance as 'good', about 40% felt it was 'average', while only 1% felt it was 'outstanding.' Farmers went ahead and suggested measures to improve performance of their groups as discussed later in this chapter. Apart from enhanced access to agricultural services members of farmer groups reported that they had experienced other benefits. Majority of the farmers (51%) have gained welfare services, with 19% of respondents gaining social security, 11% (mostly committee members of various farmer groups) acquiring a higher status in the society (Figure 4.28). Spiritual/FeJIowship Home EconomicsIniorrraton SelfActualUation HigherStatus inSociety SocialSecurity Welfu.reServies o 10 20 30 40 50 60 Frequency (%) Figure 4.28: Additional Benefits of Farmer Groups (Source: Author's Survey 2007) 57 4.4 Challenges Constraining Farmer Groups from Accessing Agricultural Services The respondents were asked to identify the major challenges that these farmer groups were facing. Both internal and external factors posed significant challenges to the well- being of these farmer groups. 4.4.1 Factors Internal to the Farmer Groups The farmers were required to rate internal factors (administrative constraints related to how their group operates) affecting their groups' performance. The fmdings of this study showed that: about 90% of the farmers felt that their group had a special niche in the development of their community (Figure 4.29). However, though not of high magnitudes, several internal constraints were identified by the farmers. There was inadequate gender representation in leadership of some of the farmer groups as reported by 17% of respondents. It was reported that members of farmer groups discussed freely in a relaxed atmosphere and listened to each other with a high degree of participation; members had decision-making responsibilities and therefore they 'owned' their farmer groups. 58 Excellent Very Good ~.+.++.++••"++ ••~.+ •••+••+.I .,",..•.,"',..•.,' ,"~, ..•.'" c"", ", """"""'~ i I r I f fl' ~ .t~~lJt t '~J i 'll,ftf~& f f * 4J~ ~ ~ Average Poor ~////. t I ~ J' I I IIIAdequate Networking withother Relevant Institutions IIJ Capacity Building Opportunities ~ Conflicts are Not Avoided but Dealt with Constructively I fiJ Group has Special NIChe in Development of the Community rJ Group Activities meet Farmer's Feh Needs 13Fair Gender Representation at all Levels §Leadership f; Competent, 100 Approachable, Accountable - . ,-- o 20 40 60 Frequency (%) 80 Figure 4.29: Factors Internal to the Farmer Groups (Source: Author's Survey 2007) Also, about 80% of respondents felt that since their farmer groups were formed as a result of the farmers' own initiatives, their activities met the felt needs of the community. Majority of respondents (73%) observed that farmer groups provided numerous opportunities for members to learn new skills (through agricultural extension advice) and members had access to information including market information, However, about 27% of farmers interviewed felt that there was inadequate networking with other relevant institutions. About 42% of respondents felt that leadership in their farmer groups is less competent due to inadequate leadership expertise among some of their leaders. This was also due to the fact that these leaders were elected based on their reputation and not whether they 59 possessed a development vision. Worse still, there was a tendency to 'recycle' leaders based on the assumption that these leaders were more experienced and therefore able to lead their respective farmer groups better. About 37% of respondents reported disagreements; and constant absenteeism especially by women who had to manage both their households and attend meetings. Disagreements were said to be caused by lack of shared vision among members of particular farmer groups. The larger the group, the more difficult it was for its members to identify a common need and objective (place et al., 2002). 4.4.2 Challenges External to the Farmer Groups Majority of the challenges experienced were mainly external to the farmer groups, that is, those that the farmers had little or no control over, but which affected performance of such groups. Using a modified five-point Likert scale, the respondents were asked to rate challenges they faced in their farmer groups. Majority of the respondents (87%) identified the poor access to farm credit as the most critical challenge they were experiencing (Figure 4.30). About 71% of respondents complained of the high cost of inputs including seeds, fertilizers, livestock fodder and chemicals used to control pests and diseases. It was reported that about 69% of farmers (including two farmer groups that specialized in banana farming); sold their produce at low prices, thereby incurring losses. It was noted that low income was in some instances due to improper post-harvest handling of farm 60 produce such as poor storage facilities of perishable commodities such as leafy vegetables and milk. Most Critical Critical Moderate Less Critical Least Critical "--l m Low Produce Selling Prices I Frequency (%) ~ Inadequate Crop and Livestock Husband o 20 40 60 80 §High Cost of Farm Inputs D Dilapidated Road Network ~Drought E21 Small Farms 1.1 Poor Access to Farm Credit Facilities 100 Figure 4.30: Challenges External to the Fanner Groups (Source: Author's Survey 2007) Other challenges rated as most critical by 63% of the fanners was the small farm holdings. Fanners have responded to population pressure on land by adopting intensive fanning practices such as zero grazing. Persistent drought experienced in the area had impacted negatively on agricultural production as was reported by 61% of the respondents. Although fanners had received extension advice, 54% lacked adequate know-how on crop and livestock husbandry and also lacked adequate access to market information. 61 A dilapidated road network in Kahuro Division was another senous challenge as mentioned by 42% of the respondents from different farmer groups. The farmer group that was engaged in marketing milk reported that they were facing serious transport problems particularly during wet seasons as loose-surface roads become muddy. Members that were cultivating french beans particularly in farms that were far away from the collection centres also reported that they were experiencing transport problems. These farmers had to trek for long distances, sometimes through difficult terrain characteristic of the area. Such challenges constrained the affected members of farmer groups from accessing agricultural services in one way or the other. 4.5 Policy Recommendations to Improve Smallholders' Access to Agricultural Services Based on the challenges faced by farmer groups in Kahuro Division, respondents gave several suggestions which; if implemented; would go along way towards improving performance of farmer groups. Majority of the respondents (85%) felt that their agricultural production would improve if they had access to more financial credit in order to expand their farming enterprises (Figure 4.31). Still, 85% of respondents suggested that the government should come up with a way to regulate and lower the cost of farm inputs; thereby making them more accessible to all farmers. 62 -------------------------------------- Most Important Important ~ till!Average . ~. . " , , . . . . " . . .. . ".,• • • • • • • • r 0 • ~ , L • • ~ •• • • • • " •• , ••• .,. ¥ •• ," " ••• " ••,. > " . """'''"////// '/////// c////// '.1'1 -" .Ii ••.•..,",..•....•....•.,,""""""",: ..•....•.. • ~ • • - < • •. ~~. - , . . :!] Least ;p Important 1o':'~=~;;;-..""/:v="'=V'~~""o>>:":.;/'=".V"::"':y'V":"':"".,;.·~~~"'=".""'>::"'I_·· 80 ~ Improve Road Network fi!J Low Cost ofFann Inputs o Increase Access to Market Information CI Improve Access to Financial Services f2I Diversification to Other Income Generating Activities [illProper Timing of Meetings fa Conflict Resolution Mechanismso 40 60 100 a Training Fanner Group Leaders and Members Figure 4.31: Suggested Solutions to Challenges Faced by Farmer Groups (Source: Author's Survey 2007) 20 Frequency (%) About 83% of the respondents expressed their wish to diversify to other income generating projects in the future. This they said would ensure they get additional income, not to mention reducing the risks involved in specializing in a single enterprise. Further, 63% of respondents identified the need for capacity building through being empowered with skills on crop and livestock husbandry. They called on the government and the private sector to be supportive through offering additional agricultural extension personnel and through the establishment of more farmer groups in Kahuro Division. About 60% of farmers felt that access to up-to-date market information would go along way in helping them package and sell their produce at internationally acceptable 63 standards; which would ensure that they attract new customers while retaining the old customers. This would also protect them from being exploited, especially on the pricing of their farm produce. About 57% of respondents urged the government to improve the road network in order to minimize post- harvest losses due to delayed transport of perishable farm produce. Lastly, the respondents were asked to state their opinions about the future of their respective farmer groups. About 86% of the respondents were optimistic about the survival of their farmer groups to deliver agricultural services in future (Figure 4.32). About 12% were uncertain, while 2% stated that the future was not promising if the current challenges that they were facing are not addressed. o 10 20 30 40 50 60 Frequency(%) 70 80 90 Uncertain Not Promising Promising Figure 4.32: Future of the Farmer Groups (Source: Author's Survey 2007) In order to improve access of agricultural services to members, thereby improving their livelihoods, farmer groups should be strengthened. In addition, to the suggested solutions by the respondents; further strategies to enhance performance of farmer groups have been recommended in the next chapter. 64 CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 5.1 Summary of the Research Findings The purpose of this study was to assess the role played by farmer groups in improving smallholder farmers' access to agricultural services. The key findings were based on the four specific objectives of the study. A total of eight farmer groups in Kahuro Division, Murang'a North District were the focus of this study. These were: Mukangu Bio-banana, Gakaki, Mirichu, Mukangu United, Kamwea, Mukandu, Kiriti and Wanjengi. A total of 10 farmers from each farmer group were picked, forming a total sample size of 80 respondents. Characteristics of the respondents are highlighted first. Majority of the farmers (48%) were aged between 51 and 60 years, about 23% were aged between 41 and 50 years and only 13% were aged below 30 years. Majority of the respondents (64%) had attained primary education. Majority of these farmers (60%) had been members of their respective farmer groups for over five years. Six out of the eight groups (75%) comprised of21- 30 members each, while 25% had over 30 members each. All respondents stated that their source of funding is mainly their contributions and registration fee by new members and that they had joined their respective groups voluntarily. Majority of the respondents (89%) owned small farm holdings, ranging between 1 - 3 acres. About 64% of the respondents owned an average 1- 1.9 acres, while 25% owned 2-2.9 acres ofland. 65 The first objective sought to explore the factors that influenced the formation of farmer groups in the study area. According to 75% of the respondents, the main driving force behind the formation of the farmer groups was their desire for increased incomes. Members of the eight farmer groups engaged in diverse income- generating farm enterprises. Three farmer groups (Gakaki, Mirichu and Mukangu United) had specialized in horticultural farming; while 5 groups were involved in dairy goat keeping and dairy farming. Approximately 50% of respondents stated that they had joined various farmer groups due to the need to increase food production from their small farms. According to majority of the farmers (60%), choice of farm enterprise was influenced by marketability of produce; and subsistence needs (33%). The second objective sought to determine the extent to which farmer groups had assisted their members to access better and more agricultural services. All the 80 respondents interviewed in Kahuro Division reported that since joining their respective farmer groups, they had benefited through having improved access to marketing, agricultural extension and financial services. The main farm produce sold through the farmer groups were milk (25%), bananas (25%), french beans (25%), and dairy goats (12.5%) among others. The main marketing channel as reported by 87% of the respondents was though their farmer groups. The study revealed that 90% of members engaging in dairy farming were selling their milk through the farmer groups. The 'most important' sources of market information as reported by 55% of the farmers were traders and their personal visits to the local market. Electronic media, mainly radio and television also played an 'important' 66 role in passing on market information as reported by 40% of the respondents. All respondents have been visited by an agricultural extension officer. The main source of extension service as reported by 53% of respondents was the Government. About 73% of the respondents felt that the quality of extension services had improved after joining the farmer groups. Also, majority of the respondents (73%) had received some form of financial assistance particularly from Non-Governmental Organizations operating in the area. Majority of the farmer groups reported to have received fmancial assistance in the form of farm inputs (33%), while about 30% received improved dairy goat high breeds ( in particular, German Alpine bucks). The third objective sought to identify the key challenges constraining farmer groups from accessing agricultural services in the study area. Majority of the respondents (87%) identified the poor access to farm credit as the most critical challenge they were facing. About 71% of respondents complained of the high cost of inputs. About 69% of farmers (including two farmer groups that specialized in banana farming); sold their produce at low prices, thereby incurring losses. Another challenge rated as most critical by 63% of the farmers was the small farm holdings. Persistent drought that had been experienced in the area had impacted negatively on agricultural production as was reported by 61% of the respondents. Still, 54% lacked adequate know-how on crop and livestock husbandry and also lacked adequate access to market information. The fourth objective sought to make policy recommendations that would contribute towards improving access by the farming population to agricultural services. Majority of the respondents (85%) felt that their agricultural production would improve if they had 67 access to more financial credit in order to expand their enterprises. Another 85% of respondents suggested that the government should come up with a way to regulate and lower the cost of farm inputs; thereby making them more accessible to more smallholder farmers. About 83% of the respondents expressed their wish to diversify to other income generating projects in the future. Further, 63% of respondents identified the need for capacity building through being empowered with skills and know-how on crop and livestock farming. 5.2 Conclusions The 8 farmer groups sampled for this study had economic objective as the main reason for their formation. As reported earlier the main driving force behind the formation of the farmer groups was their desire for increased incomes. Such genuine reason for forming farmer groups will definitely go along in enhancing their success. The study revealed that all the 8 farmer groups selected were formed around income-generating activities which foster high degree of financial independence which is crucial for sustainability of farmer groups. Membership fees and periodic contributions by members increase commitment to the activities of farmer groups. According to the assessment of the eight farmer groups as reported by the respondents these groups had high possibility of survival despite challenges faced. The study has demonstrated that farmer groups are important link between farmers and agricultural service providers. Farmer groups make it easier to reach specific, interested 68 fanners with agricultural extension services. Collective marketing enables fanners to enjoy lower marketing costs per fanner and thus higher profits earned. Group lending had improved the borrowing rates among the asset-poor smallholder fanners who were earlier discriminated against due to lack of adequate collateral powers. These findings clearly show that fanner groups help in improving smallholder fanners' access to agricultural services. However, the complexity of smallholder fanners' needs precludes any standard prescriptions for improving access to agricultural services. Fanner groups have their limits and their formation should not be seen as an end in itself, but the first step in the needed efforts to provide smallholder with agricultural services. 5.3 Recommendations • In line with Kenya's Vision 2030, the government should aim at assisting smallholder fanner groups to add the value in agricultural products in order to raise incomes mainly through processing products before they reach the market. • The government and other institutions namely NGOs and the private sector should come out and support smallholder fanner groups through offering fmancial assistance. They should ensure that loans are made available at low interest rates and with low or no collateral. Farm produce could also be used as collateral to enable fanners acquire loans. 69 • The government should provide an environment that supports smallholder farmers' initiatives regarding formation of farmer groups. In addition, the government should liaise with the local farmers to identify gaps in areas that require agricultural extension personnel and thereby supply them as per farmers' requirements. This should incorporate extensive training on crop and livestock husbandry. Training will also go along way in strengthening the management and leadership of farmer groups. Market information should also be made accessible to farmers. • The government should also improve infrastructure; including transport systems in rural areas to enable quick and easy transport of fresh farm produce in order to reduce post- harvest losses. • The government should also regulate the cost of inputs in order for smallholder farmers to afford agricultural inputs, thereby resulting into improved productivity. This will in turn raise incomes for smallholder farmers, thereby enabling them to improve their livelihoods. 70 5.4 Suggestions for Further Research • In order to further our understanding about the role of farmer groups in promoting smallholders' access to agricultural services, future studies should compare access to agricultural services between members and non-members of farmer groups. • Future studies could also capture non-members' perceptions of farmer groups and their reasons for not joining such organizations. • Another future study could assess whether there were socio-economic disparities in accessing agricultural services among members of farmer groups. • Similar studies may be replicated in other parts of the country; covering larger areas, focusing on larger farmer associations and capturing other agricultural inputs such as land and labour. 71 REFERENCES Abdulazim, A. (2000). Aspects of Traditional versus Group Extension Approaches on Farmer Behavioural Change in an Extensive Grazing Environment in the Bathurst District of New South Wales, Australia Ph.D. Thesis, University of South Wales Australia. Anandayayasekeram, P., Dixon, J., Ebong, C., Lungu, 0., Mbuya J.N., Nyoni D.M., Torkelsson, A. (2001). A Source Book for FSA Training in Farmer Training Institutions. Harare: FARMESA. ASSP (2004). Farmer Empowerment Programme Component. Working Paper. Agricultural Service Support Programme (ASSP). Joint Government of Tanzania. Bager, T. (1980). Marketing Cooperatives and Peasants in Kenya. Uppsala: Scandinavian Institute of African Studies. Baron, R.S., Kerr, N.L., and Miller, N. (1993). Group Process, Group Decision, Group Action. Buckingham: Open University Press. Bebbington, A.J., Merill-Sands, D. and Farrington, J. (1994). Farmer and Community Organizations in Agricultural Research and Extension; Functions, Impacts and Questions. Agricultural Administration-Research and Extension Network Paper 47. London: OD!. Bergdall, T.D. (1993). Methods for Active Participation: Experiences in Rural Development from East and Central Africa. Nairobi: Oxford University Press East Africa. 72 Bingen, J., Kasuta, E., Verstraelen K. and G. Tembo, (2000).Availability and Use of Agricultural Services among Small-Small Farmers and the Role of Farmer Organizations in Zambia. Chambers, R. (1983).Rural Development: Putting the Last First. London: Longman. Chitere, O.P., and Mutiso, R. (1991). Working with Rural Communities: A Participatory Action Research in Kenya. Nairobi: Nairobi University Press. Clark J. (1990).Democratizing Development: The Role of Voluntary Organizations. Oakwood Avenue: Kumarian Press. Coppock, D.L., Desta, S., Wako, A., Aden, I., Gebru, G., Tezera, S. and Tadecha, C. (2005).Women's Groups in Arid Northern Kenya: Origins, Governance, and Roles in Poverty Reduction. Retrieved June 2, 2007. Davis, K.E., and Negash, M. (2005). Gender, Wealth, and Participation in Community Groups in Meru Central District, Kenya. International Food Policy Research Institute (IFPRI). Retrieved May 7, 2007. Dijkstra, T., and Magori, T.D. (1994). Horticultural Production and Marketing in Kenya. Nairobi: Ministry of Planning and National Development. FAO (1982). Improving the Organization and Administration of Agricultural Servicesfor Small Farmers in Mrica. Nairobi: Government Printers. FAO (1998). Reform and Decentralization of Agricultural Services: A Policy Framework. Rome: Policy Assistance Division and Agricultural and Economic Development Analysis. Gautam, M. (2900).Agricultural Extension: The Kenya Experience. An Impact Evaluation. Washington D.C.: World Bank. 73 Government of Kenya (2001). Murang'a District Development Plan, 2002-2008. Nairobi: Government Printers. Government of Kenya (2003). Strategy for Revitalizing Agriculture 2004-2014. Nairobi: Government Printers. Government of Kenya (2007). Kenya Vision 2030. The Popular Version. Nairobi: Government Printers. Heemskerk, W. and Wennink, B. (2004). Building Social Capital for Agricultural Innovation: Experiences with Farmer Groups in sub-Saharan Africa. Amsterdam, The Netherlands: Royal Tropical Institute. IFAD (2001).Agricultural Extension and Support for Farmer Innovation in Western and Central Africa: An Assessment and Outlook for AID. Rome: IFAD's Evaluation Committee. IFAP (1990). Sustainable Farming and the Role of Farmer Organizations. Wageningen: Technical Centre for Agricultural and Rural Development. Jaetzold, R. and Schmidt, H. (2006).Farm Management Handbook of Kenya. Natural Conditions and Farm Information. Nairobi: Ministry of Agriculture. nCA (2004). Community Empowerment Manual on Farmer Organization and Good Agricultural Practice. Nairobi: nCA. Kamonji, V.W. (2003). An Investigation of Resources Women Farmers Use to Enhance Household Food Security: A Case Study of Embu District-Kenya. Msc. Kenyatta University, Unpublished Thesis. Kingma, K. and Mafuru, J.M. (1996). Guidelines for Farmer Research Groups Establishment, Coordination and Monitoring. Joint Government of Tanzania. 74 Kithira, F. (2004). Household Food Security of Members and Non-Members of Self- Help Women Groups in Miriga-Mieru West Division in Meru-Central District-Kenya. Msc. Kenyatta University, Unpublished Thesis. Knox, A., and Lilja, N. (2004). Collective Action and Property Rights for Sustainable Development. Farmer Research and Extension. IFPRIlCAPRI. Mati, B. M. (2005). Overview of Water and Soil Nutrient Management under Smallholder Rain-fed Agriculture in East Africa. Working Paper 105. Colombo: International Water Management Institute (IWMI). Mbilinyi, M. and Gooneratne, W. (1992). Reviving Local Self-reliance: People's Responses to the Economic Crisis in Eastern and Southern Africa, Nairobi: United Nations Centre for Regional Development (UNCRD). Mituki, D.M. (2003). Factors Influencing Food Production and Household Food Security among Women Farmers in Evurore Mbere District, Kenya, Msc. Kenyatta University, Unpublished Thesis. Mugenda, 0., and Mugenda, A. (1999). Research Methods: Qualitative and Quantitative Approaches. Nairobi: Acts Press Inc. Mulwa, F.W. (2004). Managing Community-Based Development: Unmasking the Mystery of Participatory Development. Nairobi: P. Olivex. Muthoni, M.M. (1988). A Study of Women's Access to Agricultural Production Inputs in Murang'a District, Kenya. Msc. (Agric Econ), UoN, Unpublished Thesis. Mutoro, B.A. (1997). Women Working Wonders: Small-Scale Farming and Role of Women in Vihiga District, Kenya: A Case Study of North Maragoli Amsterdam: Thela Publishers. 75 Muturi, S.N., Kilungo, J.K., Muendo, K.M., Mairura, Z., and Kariuki, J.G. (2001). Marketing of Smallholder Produce: A Synthesis of Case Studies in the Highlands of Central Kenya. Nairobi: RELMA. Muzaale, P., and Leonard, D. (1982). Women's Groups and Extension in Kenya: Agricultural Administration. Nairobi. Nairobi University Press. NEP AD (2002). Comprehensive Africa Agriculture Development Programme. New Partnership for Africa's Development (NEP AD). November 2002. www.fao.org/docrep/005N63831 EN6831 EOOhtm. Ombuki, C. (1995). Constraints to Smallholder Credit Farm Investment: A Case of Coffee Farming in Majoge Chache Location, Kisii District, M.A. Unpublished Thesis, Kenyatta University. Onduru, D.D., Muchena, F.M., Gachirnbi, L., and Maina, F. (2002). Farmer Field Schools in Western, Central and Eastern Kenya. Nairobi: KARl. Oyster, C.K. (2000). Groups: A User's Guide. New York: Me Graw-Hill Company. Peacock, C., Jowett, A., Dorward, A., Poulton, C., and Urey. (2004). Reaching the Poor: A Call to Action, Investment in Smallholder Agriculture in Sub-Sahara Africa. London: FARM-Africa. Place, F., Kariuki, G., Wangila, J., Kristjanson, P., Makauki, A. and Ndubi, J. (2002). Assessing the Factors Underlying Differences in Group Performance: Methodological Issues and Empirical Findings from the Highlands of Central Kenya. CAPRi Working Paper No. 25. CGIAR Systemwide Programme on Collective Action and Property Rights. 76 Pretty, J. (2003). Social Capital and Connectedness: Issues and Implications for Agriculture, Rural Development and Natural Resource Management in ACP Countries. Review Paper for CTA. Sproull, N. (1988). Handbook for Research Methods: A Guide for Practitioners and Students in Social Sciences. London. Scarecrow Press Inc. Taylor, D.R.F. and Mackenzie, F. (1992). Development from Within: Survival in Rural Mrica. London. Routledge. Uphoff, N.T. (1986). Local Institutional Development: An Analytical Sourcebook with Cases. West Hartford Connecticut. Kumarian Press. Waterlow, J.C. (1998). Feeding a World Population of more than 8 Billion People: A Challenge to Science. New York: Oxford University Press. World Bank Group (2001). Community Driven Development in Mrica. A Vision of Poverty Reduction through Empowerment. www.worldbank.org/cdd. 77 APPENDICES Appendix I: Questionnaire Section 1 Respondent's General Data 1. Name of the respondent (optional) 2. Home Location: Kahuhia [] Weithaga [] Mugoiri D Murarandia [] 3. Age (in years): 20-30 [] 31-40 [] 41-50 [] 51-60 Above 60 yrs D 4. Gender: Male [] Female [] 5. Marital status: Married [] Single [] Widow D Widower [] Divorced [] Separated [] 6. Have you ever been to school? Yes D No [] 7. If yes, state the level of education attained? Primary [] Secondary [] College [] Section 11 Land Tenure & Use 1. Land Size & Use a) Do you own land? Yes [] No [] b) If yes, what is the size of your farm in acres? Less than 1 acre [] 1-1.9 [] 2-2.9 acres [] above 3 acres [] c) What size of your land is: i) Cultivated under crop production acres ii) Under fallow __ acres d) How was the land acquired? Inherited [] Purchased [] others (specify) e) Have you rented any land? Yes D No [] f) If yes, what size of land is rented? acres. 78 liM 2. Household Headship a) Name of the Household Head (decision maker) _ b) Gender of Household Head (HH)? 1= Male 2= Female c) Occupation of the HH: 1= Farming 2= Business 3= others (specify) _ d) Relationship of respondent to HH (if not HH) 1= Spouse 2= Daughter 3= Son e) Occupation of spouse: 1= Wife works on-farm full time 2= Husband works on-farm full time 3= Both work on-farm full time 1) Size and age of the household members A~ebracket Number Below 20 years 20 -60 years Above 60 years 3. Labour availability a) Do you hire casuals? Yes [] No [] If yes, how often? Rarely [] Sometimes [] Usually 0 Always 0 b) Do members of this household sell off labour? Yes 0 No [] If yes, how often? Rarely 0 Sometimes [] Usually 0 Always [] 79 Section 11 Agricultural Services Accessed through Farmer Groups A Production Constraints l.a) Do you face any food shortage in your household? Yes [] No [] b) What is your perception about food security ill your household? Good [] Fair [] Poor [] c) List three priority types of staple food bought by your household? (Choose from code): 1= Maize flour 2= Vegetables 3= Maize 4= Beans 5= Rice 6=Potatoes 7= others (specify) 2. What major constraints prevent you from increasing your agricultural production? Is this a Score (5 = most Constraint constraint? critical, Yes/No 1 = least critical) Inadequate access to marketing information Inadequate knowledge in crop & livestock production. Poor access to farm credit facilities Small farms Drought Others (specify) 3. Rate farm-level prices of the following farm inputs: Tick appropriately. Farm inputs o tions Very hi2h Hi2h Moderate Low Very low Improved seeds Veterinary services e.g.A.I. Fertilizers/ Agro- chemicals Labour Animal feeds Others (specify) 80 B. Factors influencing Formation of Farmer Groups 1. a) Are you currently a member of any farmer group? Yes [] No [] If yes, please fill in the table using the code provided below. Name of Type of Your position Duration of Frequency farmer farmer group in the farmer membership of regular 2roup 2roup meetings Code: Type of farmer group: 1 = Mixed 2 = Women's 3 = Men's 4 = Youths' Position in the farmer group: 1= Committee member 2 = Ordinary member Duration of membership: 1 = 1-2yrs 2 =3-5 yrs 4= above 5 yrs Frequency of regular meetings: 1= Weekly 2 = Fortnightly 3 = Monthly 4= Others (Special) 2. How many members does your farmer group have? 10-20 [] 21- 30 [] More than 30 [] 3. How does one become a member of farmer group? Voluntary [] Involuntary [] 4. Who initiated formation of farmer group, its objectives & main activities? Initiator of farmer Objectives Group's core 2roup activities Use the code below. Responses are not mutually exclusive Initiator of the farmer group: 1 = Farmers themselves 2 = Government 3 = Non- governmental organizations 4 = Private sector 5 = others (specify). Objectives of farmer group: 1= Desire for increased incomes 2 = Increase food production 3 = Improved access to agricultural services 4 = others (specify). Farmer group's core activities: 1 == Horticultural farming 2 = Dairy goat keeping 3 = Dairy farming 4 = Merry-go-round 5 = Welfare activities 6 = others (specify) 81 5. What factors did influence the choice offann enterprises? a. Marketability of produce Il b. Subsistence needs [] c. Availability of farm inputs [] d. Neighbours' influence [] e. Extension officers' advice [] f. others (specify) Rank in terms of importance (1= most important & 6 least important) 6. How does your group get funds to run its operations? Members' contributions [] Registration fees [] Donation! grants [] Loans [] others 7. How are leaders chosen in your group? Elected by members [] Self-imposed [] Appointed by outsiders [] others [] C. Role of Farmer Group in Delivery of Agricultural Services 1. List down the agricultural services that you receiving through your fanner group. Marketing services [] Extension services [] Financial services [] others (specify) 2. Marketing Services a) Do you sell any of your farm produce through your fanner group? Yes [] No [] b) If yes, what farm produce do you sell? Milk [] Bananas [] French beans [] Other vegetables [] Fruits [] others (special) _ 82 c) What among the following comprise the source of market information? Source of information Is this a source? Score ( 10=most Yes/No important, 1= least important Traders/ personal market visits Agro- input dealers Other farmers/ Neighbours TV & Radio Newspapers (print media) Extension officers Others (specify) 3. Extension Services a) Have you ever been visited and advised by an agricultural officer as farmer group? Yes [] No [ ] b) If yes, what is your main source of your extension advice? Public [] Private [] NGOs [] Charitable organizations [] other sources (specify) c) Do you find the extension advice received through farmer group relevant to your farming needs? Yes [] No [] Sometimes [] d) Have you ever received any training on crop or livestock management? Yes [] No [] e) If yes, state the knowledge and skills acquired from the training? Area of Training Skills learnt Has skills been used? No/Yes Crop management Livestock management 83 f) In what way(s) have you benefited from the extension advice received? Upgrading of dairy goat breeds [] Higher milk production [] Market information access enhanced [] Better soil fertility management [] others (specify) [More than one than one choice is acceptable] g) Indicate the change in quality of the extension received after joining farmer group. Better [] No change [] Worse [] 4. Financial Services a) Have you ever received any form of financial assistance through your farmer group? Yes [] No [] b) If yes, what fmancial assistance did you receive? Cash [] Farm inputs e.g. Seeds, fertilizers [] others (specify) _ c) How was the farm credit utilized? 1= Purchased seeds 2= Purchased fertilizers 3= Bought better grade stock 4= others (specify) _ d) What was the source of the fmancial assistance that you received through farmer group? Government [] NGOs [] Micro- finance institutions [] Commercial bank [] others e) Indicate the change in conditions and procedures of obtaining the farm credit after joining farmer group? Less stringent [] No change [] More stringent [] 84 f) Indicate the change in access to agricultural services after joining farmer group. Agricultural Service Improved Not improved Agricultural Extension Services Marketing Services Farm Credit Facilities g) Apart from agricultural services received through your farmer group, what other benefits do you enjoy from the farmer group? Social security [] Welfare services [] Home economics information [] Spiritual/ Fellowship 0 others (specify) _ Section 111 Challenges Facing Farmer Groups while Delivering Agricultural Services 1. What major constraints hamper farmers' access to agricultural services through your farmer group? Constraint Is this a Score among How can it be constraint? applicable addressed (See Yes/No constraint suggestions & code below) Leadership problems Disagreements Absenteeism Illiteracy Inadequate funds Others (specify) Suggested measures: 1= Training of group leaders and members 2= Conflict resolution mechanisms 3= Proper timing of meetings 4= others 85 2. How do you rate the performance of your fanner group in delivery of agricultural services? Outstanding [] Good [] Average [] Below average [] Others 3. How would you assess your fanner group on the following aspects? Tick in the appropriate column using the key below the table. Farmer's assessment Aspect 0 1 2 3 4 Members discuss freely in a relaxed atmosphere and listen to each other with high degree of participation Members have decision-making responsibilities and therefore feel they "own" their fanner group Leadership is competent, approachable, transparent & accountable and live beyond the "founder syndrome" dilemma. There is adequate gender representation at all levels. Fanner group activities meet the felt needs of the communities. Fanner group has a special niche in the development of the community. Conflicts are not avoided, but dealt with constructively. There are opportunities for members to learn new skills & members have access to information they need There is adequate networking with other relevant institutions/ inter-group relations/ willingness to learn from others. Key: 0 = Never happens 1 = Poor 2 = Average 3 = Very good 4 = Excellent 4. Based on your above assessment, how do you perceive the future of your fanner group? Promising [] Uncertain [] Thank you for generously sharing with me. 86