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The influence of prices on market participation decisions of indigenous poultry farmers in four districts of Eastern Province, Kenya

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  • Mailu, Stephen
  • Wachira, Ann

Abstract

Over 70% of the domesticated birds in Kenya are indigenous chicken (IC) providing meat and table eggs. They are frequently raised through the free range, backyard production system. Small flock sizes are characteristic of this production system and often, sales are mainly at the farmgate. Although IC production possesses enormous potential at livelihood improvement, marketing systems are undefined and variable. The influence of prices on market engagement has frequently been assumed. A study of 68 farmers conducted in Machakos, Kibwezi, Nzaui and Mwala District in 2008 revealed that 70% of all IC sales were conducted at the farmgate while only 19% of the sales were at the local market. This study also investigates the probability of market participation by employing a binary logistic regression model. The results suggests that while farmers complain of poor farm gate prices for indigenous chicken offered by middlemen, low volumes are an important drawback to market participation.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21312.

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Date of creation: Dec 2009
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Handle: RePEc:pra:mprapa:21312

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Related research

Keywords: Market; Price; Indigenous chicken; Farm-gate;

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  1. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
  2. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
  3. Awudu Abdulai & Eliud A. Birachi, 2009. "Choice of Coordination Mechanism in the Kenyan Fresh Milk Supply Chain," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 103-121.
  4. Michael Gerfin, 1993. "Parametric and Semiparametric Estimation of the Binary Response Model of Labor Market Participation," Diskussionsschriften dp9315, Universitaet Bern, Departement Volkswirtschaft.
  5. Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.
  6. Uchezuba, I.D. & Moshabele, E. & Digopo, D., 2009. "Logistical estimation of the probability of mainstream market participation among small-scale livestock farmers: a case study of the Northern Cape province," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(2), June.
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