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The Impact of State Marketing Board Operations on Smallholder Behavior and Incomes: The Case of Kenya

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  • Mather, David
  • Jayne, Thomas S.

Abstract

Marketing boards and strategic reserves have re-emerged over the last decade as significant actors in grain markets in eastern and southern Africa, yet there is little empirical research regarding how their activities affect smallholder behavior. This paper uses panel survey data from 1997-2007 on Kenyan smallholders to investigate the effect of Kenya’s National Cereal Produce Board activities on farmgate maize price expectations, output supply, and factor demand. Results show that the NCPB pan-territorial price has a positive effect on smallholders’ maize price expectations, and that smallholders respond to higher expected maize prices by increasing maize production through increased fertilizer use.

Suggested Citation

  • Mather, David & Jayne, Thomas S., 2012. "The Impact of State Marketing Board Operations on Smallholder Behavior and Incomes: The Case of Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131056, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:131056
    DOI: 10.22004/ag.econ.131056
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    14. Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
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    1. Sheahan, Megan & Ariga, Joshua & Jayne, Thomas S., 2013. "Modeling the Effects of Input Market Reforms on Fertilizer Demand and Maize Production: A Case Study of Kenya," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150697, Agricultural and Applied Economics Association.
    2. Mason, Nicole M. & Jayne, Thomas S. & Myers, Robert J., 2012. "Smallholder Behavioral Responses to Marketing Board Activities in a Dual Channel Marketing System: The Case of Maize in Zambia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126927, International Association of Agricultural Economists.
    3. Sheahan, Megan & Olwande, John & Kirimi, Lilian & Jayne, Thom S., 2014. "Targeting of Subsidized Fertilizer Under Kenya's National Accelerated Agricultural Input Access Program (NAAIAP)," Working Papers 202590, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    4. Megan Sheahan & Joshua Ariga & T. S. Jayne, 2016. "Modeling the Effects of Input Market Reforms on Fertiliser Demand and Maize Production: A Case Study from Kenya," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 420-447, June.
    5. Olson, David W. & Mason, Nicole M., 2017. "Maize Marketing Boards and Sustainable Intensification: Panel Survey Evidence from Kenya," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258093, Agricultural and Applied Economics Association.
    6. Fung, Winnie & Liverpool-Tasie, Saweda & Mason, Nicole & Oyelere, Ruth, 2015. "Can Crop Purchase Programs Reduce Poverty and Improve Welfare in Rural Communities? Evidence from the Food Reserve Agency in Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 211637, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Food Security and Poverty; International Development; Marketing;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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