Effects of Market Reforms on Irish Potato Price Volatility in Nyandarua District, Kenya

This paper evaluates the effects of market reform policies on the volatility of Irish potato prices in Kenya through an analysis of a 20 year monthly time series data set from Nyandarua district using an autoregressive econometric approach. The empirical results show that there has been a rise in Irish potato prices and lowering of price volatility after the implementation of market reform policies. The real prices exhibit seasonal variations around an upward trend with the prices being depressed during the harvesting period. The price risk premia is found to be negative revealing that the cost of carrying out Irish potato business declined, and farmers were better off with the implementation of the reforms. The collection and distribution of price information, storage of Irish potatoes during periods of glut, improvement in productivity and use of commodity exchange markets can help to reduce price volatility. Keywords: Price volatility, Market reforms, Autoregressive mode

Using ICT to integrate smallholder farmers into agricultural value chains : the case of DrumNet in Kenya; paper presented at IAAE eARN Africa Symposium, Beijing, August 19, 2009

PowerPoint presentationThis presentation looks at the effect of the DrumNet intervention in smallholder sunflower production in Kenya. DrumNet is a mobile service that allows farmers to check current market prices for their produce at a range of locations. It aims to resolve the constraints of small farmers through a mobile phone-based platform. Poor market linkages contribute to the “low equilibrium poverty trap” (low investment, low harvests, low marketable surplus). DrumNet provides three sets of business support services – marketing, finance, and information – as an integrated package for small farmers that have typically been unable to move into better paying output markets