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A Farm Gate-to-Consumer Value Chain Analysis of Kenya's Maize Marketing System

Author

Listed:
  • Kirimi, Lilian
  • Sitko, Nicholas
  • Jayne, Thom S.
  • Karin, Francis
  • Muyanga, Milu
  • Sheahan, Megan
  • Flock, James
  • Bor, Gilbert

Abstract

Based on the findings of this study, the following actions are proposed for consideration by the Government of Kenya: 1. Raise public investment in maize seed breeding and agronomic research to make it possible for improvements in smallholder crop productivity. Based on research evaluating the returns to alternative investments in agriculture, public expenditures in maize seed breeding and agronomy may constitute the single most important investment to promote broad-based productivity growth and poverty reduction in Kenya. 2. Explore options for improving public and private extension programs to enable farmers to adopt improved farm technologies generated from point 1. 3. Examine options for bringing more land in Kenya under potential cultivation by smallholder farmers. Unless the land constraints in currently densely populated rural areas of Kenya are relieved, it is unlikely that a large portion of farmers in Kenya that own less than one hectare will be able to rise out of the semi-subsistence conditions that keep them trapped in poverty. 4. Support training programs to enable smallholders to develop more effective marketing strategies and to negotiate more effectively with traders, in order to raise the prices that they receive for their maize. 5. Raise public investment in road, rail, and port infrastructure to reduce marketing costs as well as the cost of modern inputs such as fertilizer to the farm gate. Rehabilitating the Kenyan railway system would be a key priority. If this were done prior to 2009, maize imports could have arrived in greater volumes much faster in early 2009 and pushed food prices down faster. 6. When early warning estimates predict a need for large import quantities, remove the import tariff soon enough to allow traders to import over a sufficiently long period to avoid transport capacity constraints and domestic stockouts. 7. Review the rationale for denying import licenses when applied for by traders. 8. Consider the costs and benefits
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Suggested Citation

  • Kirimi, Lilian & Sitko, Nicholas & Jayne, Thom S. & Karin, Francis & Muyanga, Milu & Sheahan, Megan & Flock, James & Bor, Gilbert, 2011. "A Farm Gate-to-Consumer Value Chain Analysis of Kenya's Maize Marketing System," Working Papers 202597, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    • Handle: RePEc:ags:egtewp:202597
    DOI: 10.22004/ag.econ.202597
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    References listed on IDEAS

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    1. Muyanga, Milu & Jayne, Thom S. & Argwings-Kodhek, Gem & Ariga, Joshua, 2005. "Staple Food Consumption Patterns in Urban Kenya: Trends and Policy Implications," Working Papers 202624, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Chamberlin, Jordan & Jayne, Thomas S., 2009. "Has Kenyan Farmers’ Access to Markets and Services Improved? Panel Survey Evidence, 1997-2007," Food Security Collaborative Working Papers 58545, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Nyoro, James K. & Kiiru, M.W. & Jayne, Thom S., 1999. "Evolution of Kenya's Maize Marketing Systems in the Post-Liberalization Era," Working Papers 202679, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    4. Haggblade, Steven & Longabaugh, Steven & Tschirley, David L., 2009. "Spatial Patterns of Food Staple Production and Marketing in South East Africa: Implications for Trade Policy and Emergency Response," Food Security International Development Working Papers 54553, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Ariga, Joshua & Jayne, Thomas S., 2009. "Private sector responses to public investments and policy reforms: The case of fertilizer and maize market development in Kenya," IFPRI discussion papers 921, International Food Policy Research Institute (IFPRI).
    6. Kamau, Mercy & Olwande, John & Githuku, James, 2011. "Consumption and Expenditures on Key Food Commodities in Urban Households: The Case of Nairobi," Working Papers 202602, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    7. Jayne, T. S. & Argwings-Kodhek, Gem, 1997. "Consumer response to maize market liberalization in urban Kenya," Food Policy, Elsevier, vol. 22(5), pages 447-458, October.
    8. Kimenju, Simon C. & Tschirley, David L., 2008. "Agriculture and Livelihood Diversification in Kenyan Rural Households," Working Papers 202614, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    9. Jayne, Thomas S. & Tschirley, David L., 2009. "Food Price Spikes and Strategic Interactions between the Public and Private Sectors: Market Failures or Governance Failures," Food Security Collaborative Working Papers 97142, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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