Linking Farmers to Markets through Modern Information and Communication Technologies in Kenya

This paper highlights a market information and linkage system (MILS) developed and tested by the Kenya Agricultural Commodity Exchange Limited (KACE) that increases the efficiency of agricultural markets to work better for smallholder farmers and other small and medium sized agro-enterprises (SMEs). The MILS involves harnessing modern information and communication technologies (ICTs) to empower farmers with low-cost reliable and timely market information to enhance the bargaining power of the farmer for a better price in the market place, and to link the farmer to markets more efficiently and profitably. The components of the KACE MILS are (www.kacekenya.com): Rural based Market Information Points (MIPs) which are information kiosks located in rural markets, District-level Market Information Centres (MICs), Mobile Phone Short Messaging Service (SMS), Interactive Voice Response (IVR), Internet based database system, rural FM radio and the Central Coordinating Hub in Nairobi. KACE has adopted a business approach to the provision of its services: users pay for the services. For instance it charges: placement fees per initial offer or bid (US$1.5-15), commissions on concluded deals (0.5$ 65 for 6 months or US$125 for 12 months), fees to visiting foreign groups (US$ 2,000-5,000/visit) and revenue sharing agreements with SMS and IVR service providers. When the KACE MILS services are scaled out and widely used by many farmers and SMEs across Kenya, the system will generate sufficient revenue to sustain its services without reliance on development partner funding. To enhance the financial sustainability of the MILS services further, KACE has recently initiated two innovations: franchising MIPs and MICs to local entrepreneurs, and establishing a virtual trading floor to improve the matching of offers and bids through a rural-based FM Radio program. A recent study of the impact of the KACE MILS concluded that the proportion of farmers and traders that say their incomes has increased and their bargaining positions have improved is very high (75% farmers and 60% commodity traders). Furthermore, the study concluded that it was clear that during the years in which the KACE MILS has been operational, market integration improved for two commodities studied (i.e. maize and beans). This study also highlights the challenges faced by the KACE MILS, including poor infrastructure that imposes high transport costs to markets, high costs of mobile phone calls and SMS and small quantities of produce of varying quality offered. Keywords: Information and communication technology, innovations, Kenya,Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Institutional and Behavioral Economics, International Relations/Trade, Land Economics/Use, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,

Determinants of profitability of black soldier fly farming enterprise in Kenya

Black Soldier Fly (BSF) farming is poised to provide high quality affordable alternative protein sources for animal feed production. This study aimed to assess determinants of profitability of the BSF enterprise. There is a need for more research at the commercial level. Due to limitations of the COVID-19 pandemic, in-depth interviews were conducted as there were few respondents. The mathematical model shows a strong positive correlation between the dependent (BSF farm enterprise gross margin) and independent variables (substrate, labour, farm size, level of education, household size, age and experience), with substrate and household size having a significantly positive relation.Australian Centre for International Agricultural Research (ACIAR)World BankNorwegian Agency for Development CooperationNetherlands Organization for Scientific Research, WOTRO Science for Global Development (NWO-WOTRO)Rockefeller FoundationUnited Kingdom’s Foreign, Commonwealth and Development Office (FCDO)Swedish International Development Cooperation Agency (Sida)Swiss Agency for Development and Cooperation (SDC)Federal Democratic Republic of EthiopiaGovernment of the Republic of Keny

Synthesis of constraints to livestock research and development and recommendations

This report is a synthesis of the workshop and covers the major constraints to improving livestock production ystems in the subregion (East and Southern Africa) and includes a set of recommendations for follow-up action. Discusses the changing agricultural systems in the region, livestock production systems, major constraints, long-term nature of livestock programmes, monitoring, programme development, implementation strategy and follow-up action

Assessing economic impact of tick-borne diseases and their control: the case of theileriosis immunisation

This paper first discusses the need to assess the economic impact of livestock diseases and their control. It then examines the conceptual framework for assessing the economic impact of diseases and their control. This is followed by a brief explanation of some of the economic concepts behind the control of livestock diseases. A computer spreadsheet model which has been used in the past for assessing ex-ante the economic impact of theileriosis and its alternative control by the infection-and-treatment method is explained. The data requirements for the model are discussed. Examples of the application of the model in various case studies and some of the results obtained are discussed briefly as an illustration of the type of information that the model can generate for disease control decision-making. The presentation ends by highlighting some of the issues that need to be addressed to facilitate assessments of the economics of tick-borne diseases

Income and employment generation in Kenyan small-scale agriculture.

This research investigated the feasibility of generating higher income and employment in Kenyan small-scale agriculture for alleviating rural poverty. It also assessed the possible conflict and trade-offs between increasing both income and employment. The probable impacts of efficient resource allocation, relaxation of subsistence food constraints, higher profitability, higher off-farm employment, land rental market, and a composite of these policy options were analyzed. Production data for the 1978-79 crop year were obtained from a random sample of 38 farms in Mbiuni location of Machakos District. Using a Land-Adult Equivalent Ratio (LAER), the sample was divided into three groups: low (.80 ha), medium (1.31ha) and high (2.35 ha). For each group, a representative farm was developed. Three linear programming models were constructed for each representative farm. The first assumed a profit- maximizing objective. The second represented an employment-maximizing objective. The third adopted a multiobjective programming approach. Each model included land, labor, capital and subsistence food constraints, and production, labor and capital activities. For each model, results were weighted by the number of farms in each group and aggregated over the sample. Under existing farming systems, enterprise intensity increased, and food crops substituted for cash crops as the LAER declined. The average income per household person was Kenya shillings (Ksh) 700. This was only 37 percent of the then per capita national income of Ksh 1,875 (US $255, 1978). The average income decreased as the LAER fell. On average of the entire sample, 53 percent of the labor supply was employed. As the LAER declined, the rate of employment decreased, increasing underemployment; and the rate of off-farm employment and off-farm income increased. Generally, all farms utilized resources efficiently. In particular, low LAER farms were relatively more efficient than high LAER farms. There was capacity to increase income and employment up to 54 and 31 percent respectively under the income- maximizing strategy. The employment-maximizing strategy generated a substantial (20% or more) 65 percent increase in employment, but a modest 11 percent increase in income. For each strategy, the increases were likely if all the policy options were pursued concurrently. On average of all options, the income strategy generated 36 percent more income but 20 percent less employment than the employment strategy. Conversely, the employment strategy generated 26 percent more employment but 27 percent less income than the income strategy. The average income-employment trade-off was 2.07 man-days of employment sacrificed for each pound (Ksh 20) of income gained by the income model. Equivalently, Ksh 9.68 of income were forfeited per man-day of employment gained by the employment model. The Multiobjective Linear Programming (MOLP) approach maximized both income and employment for each option, taking into account the relative value of each objective. On average of all options, MOLP generated 23 percent more employment but only 7 percent less income than the uniobjective income model. Alternatively, MOLP generated 26 percent more income with merely 2 percent less employment than the uniobjective employment model. The MOLP composite option yielded the best results for the whole analysis. It generated 45 and 60 percent increase in income and employment respectively. Two overall conclusions can be made. First, farm population becomes poorer as the land base per worker declines. A variety of farm policies should be pursued concurrently in order to increase income and employment to alleviate the poverty. These should emphasize food crop production, labor-using and land-saving technologies. Second, a multiobjective programming approach should be adopted in order to maximize both income and employment in agriculture

Estimating demand for theileriosis vaccines

This paper first describes demand and supply for a vaccine, and looks into demand and supply relationship. It then discusses other determinants of demand and supply for a vaccine. The method and preliminary results for estimating potential demand are also discussed and future research needs summarised