6 research outputs found

    Export Market Linkage via Gentleman's Agreement: Evidence from French Bean Marketing in Kenya

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    "Gentleman's agreements" involving handshakes or promissory market access possibilities through brokers and middlemen have enabled most small farmers in Kenya to export an extensive array of fruits and vegetables. However, despite rapid expansion into these forms of market linkages, there has been a dearth of empirical information regarding the factors that such marketers consider when linking small farmers to the market. This paper uses data from a 2001 French bean farmers survey conducted in Mwea Tebere Central Kenya to evaluate household and infrastructural factors determining informal linkages for French bean marketing. Logit estimates show that irrigation equipment is a prerequisite for linkage, farm localities further from central crop collection centres and close proximity of farms to source of irrigation waters, and poor accessibility of large farms preferred by brokers in linking small farmers. The results lend credence to the importance of brokers and middlemen as an emerging institution in linking small farmers to export markets in rural regions that have poor infrastructures e.g. roads.verbal agreement, logit, French beans exports, small farmers, linkage, brokers and middlemen, International Relations/Trade,

    Role of Social Capital on Uptake of Sustainable Agricultural Intensification Practices’ Combinations

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    Smallholder farmers in sub-Saharan Africa are faced with many challenges in the production of maize and legumes. Some of the challenges include soil mining, drought, soil erosion, input acquisition among others. These challenges cannot be alleviated with the adoption of a single agricultural practice but a bundle of combination. There was need, therefore, to evaluate if social capital among other factors influences adoption of the different combination of the six Sustainable Agricultural Intensification Practices among smallholder maize-legume systems in Kenya. The study used secondary data from Adoption Pathway project panel dataset collected from Bungoma, Siaya, Meru, Tharaka Nithi and Embu counties, in three waves:  covering 613 households in the baseline, 535 in the midline and 495 in the end line was used in the analysis. Eighteen possible combinations adopted by smallholder farmers, a Principal Component Analysis was used to reduces data dimensionality, such that Seven possible clusters were formed that were homogeneous within. An index of the different combinations in the cluster was then formed for each household. Using STATA software, a Seemingly Unrelated Regression model was used in the analysis of the seven equations against a set of dependent variables, among them social capital. The findings of the study showered that social capital is not significant in explaining adoption of different combinations of SAIPs that a household adopted except for cognitive social capital and participation level in group institutions where the household was a member. Other factors that influenced adoption of combination of SAIPs included age of the household head, received information about SAIP and input markets, amount of money that a household got as income and that which they saved. Additionally, the spatial distance of the farming plot measured as the number of walking minutes from the household homestead and the number of years one has been living in the village practicing maize-legume production also significantly influenced the combinations of the SAIPs that a household adopted. Policy interventions should encourage and promote better access to information and encourage participation in group institutions. Keywords: Principal Component Analysis, Clusters, Seemingly Unrelated Regressio

    Export Market Linkage via Gentleman's Agreement: Evidence from French Bean Marketing in Kenya

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    "Gentleman's agreements" involving handshakes or promissory market access possibilities through brokers and middlemen have enabled most small farmers in Kenya to export an extensive array of fruits and vegetables. However, despite rapid expansion into these forms of market linkages, there has been a dearth of empirical information regarding the factors that such marketers consider when linking small farmers to the market. This paper uses data from a 2001 French bean farmers survey conducted in Mwea Tebere Central Kenya to evaluate household and infrastructural factors determining informal linkages for French bean marketing. Logit estimates show that irrigation equipment is a prerequisite for linkage, farm localities further from central crop collection centres and close proximity of farms to source of irrigation waters, and poor accessibility of large farms preferred by brokers in linking small farmers. The results lend credence to the importance of brokers and middlemen as an emerging institution in linking small farmers to export markets in rural regions that have poor infrastructures e.g. roads

    DETERMINANTS OF VERTICAL COORDINATION OPTION CHOICES AMONG SMALLHOLDER FRENCH BEANS PRODUCERS IN KENYA

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    Research background: With market liberalization and the introduction of the new Global GAP measures, several vertical coordination options have emerged, presenting smallholder farmers with multiple market outlets. The choice of any vertical coordination option (VCO) is likely to be entwined by farm, farmer and vertical coordination attributes, yet the selection of an appropriate market outlet for delivering farm produce is not clear-cut. Purpose of the article: This study determines factors influencing the choice of vertical coordination options among smallholder French beans producers in Murang’a South Sub-County Methods: Using data from a sample of 215 smallholder producers, the study employed a multivariate probit model (MVP) to explain the determinants of vertical coordination option choices among French beans farmers in four wards located in Murang’a South Sub-County. Findings & Value added: The results indicate that the choice of vertical coordination option was significantly influenced by gender, household size, education stock, group membership, extension service, training access, farming experience, off-farm income, credit access, distance and market reliability. This implies that the promotion of collective action as an institutional tool for linking farmers to high-value markets, matters. These networks will aid in sharing knowledge, increasing borrowing power and thus, producers can improve French bean quality as required by the market. Additionally, financial institutions stakeholders should develop policies that favour the acquisition of credit at affordable rates. Further, the government with other relevant stakeholders should conduct more training on global gap standards

    Determinants of smallholder farmers' participation in banana markets in Central Africa : the role of transaction costs

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    A bivariate probit model was employed to jointly and separately estimate banana market participation decisions of buying and selling households in Rwanda and Burundi using household survey data. Selectivity bias was corrected for estimating the transacted volumes using Heckman’s procedure. The results showed that transaction cost-related factors such as geographical location of households, market information sources, and travel time to the nearest urban center influence market participation. Non-price-related factors such as security of land tenure, labor availability, off-farm income, gender of the household head, and years of farming experience had a significant influence on the transacted volumes. Output prices had a significant correlation with sales volume, indicating price incentives increased supply by sellers. Generally, the findings suggest that policies aimed at investments in rural road infrastructure, market information systems, collective marketing, and value addition of banana products may provide a potential avenue for mitigating transaction costs and enhancing market participation and production of marketed surplus by rural households.Funding was provided by the Belgian Development Cooperation

    Determinants of adoption of GLOBAL G.A.P. standards: Evidence from smallholder French beans farmers in Murang’a County, Kenya

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    AbstractGLOBAL Good Agricultural Practices (GLOBAL G.A.P.) standards have appeared to increasingly control the exchange of horticultural products in the international market. To make horticulture exports viable and lucrative, smallholder farmers need to invest in GLOBAL G.A.P. While research has focused on the impact of adoption on the welfare of farmers, the factors stimulating the adoption of these standards have been ignored. This study examines the determinants of the adoption of GGAPs (GLOBAL G.A.P.) among smallholder French bean producers in Murang’a South Sub-County. The study used cross-sectional data from a random sample of 215 farmers. The adoption index was used to determine adoption levels per household while a “gologit model” was applied to assess factors influencing the adoption of GGAPs among farmers. The adoption index results indicate that farmers on the contract had higher adoption levels (66%) relative to non-contracted farmers (34%). Based on the gologit findings, the determinants of farmer’s compliance levels were age (P < 0.01), gender (P < 0.1), education (P < 0.01), household size (P < 0.01), training (P < 0.01), extension service (P < 0.05), group membership (P < 0.05), farming experience (P < 0.05), vertical coordination options (VCO) (P < 0.1) and market availability(P < 0.01) and reliability (P < 0.05). Therefore, this study recommends an incentive that will promote the improvement of agricultural extension to facilitate contract farming for the adoption of GGAPs. Additionally, the government should put in place measures to safeguard farmers from market exploitation
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