IDEAS home Printed from https://ideas.repec.org/p/ags/itic10/188084.html

Market Segmentation Strategies And Seed Purchasing Decisions Among Smallholders: Preliminary Findings From Kenya

Author

Listed:
  • De Groote, Hugo
  • Andam, Kwaw S.
  • Munyua, Bernard
  • Spielman, David J.

Abstract

Efforts to increase agricultural productivity in sub-Saharan Africa require innovative approaches to improve smallholder access to new technologies. One increasingly popular approach is the use of market segmentation schemes to target smallholders with subsidized inputs. This paper presents results from an evaluation of the impact of a discount voucher scheme designed to encourage the purchase of improved maize seed by smallholders in two districts in Kenya. The study uses a randomized experiment to rigorously establish the counterfactual, i.e., ―what would have happened in the absence of the scheme?‖ Findings suggest that while the scheme generated a significant displacement effect, higher discounts on the price of seed did have a positive impact on seed purchases. The findings are relevant to government and corporate decision-makers interested in disseminating genetically modified crops to smallholders in sub-Saharan Africa through the use of discount vouchers tied to humanitarian use exemptions and royalty-free licenses.

Suggested Citation

  • De Groote, Hugo & Andam, Kwaw S. & Munyua, Bernard & Spielman, David J., 2010. "Market Segmentation Strategies And Seed Purchasing Decisions Among Smallholders: Preliminary Findings From Kenya," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188084, International Consortium on Applied Bioeconomy Research (ICABR).
    • Handle: RePEc:ags:itic10:188084
    DOI: 10.22004/ag.econ.188084
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/188084/files/DeGroote679.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.188084?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ariga, Joshua & Jayne, Thom S. & Nyoro, James K., 2006. "Factors Driving the Growth in Fertilizer Consumption in Kenya, 1990-2005: Sustaining the Momentum in Kenya and Lessons for Broader Replicability in Sub-Saharan Africa," Working Papers 202619, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    3. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    4. Beintema, Nienke M. & Dehmer, Steven & Pardey, Philip G. & Wood, Stanley, 2006. "Agricultural research: a growing global divide?," Food policy reports 17, International Food Policy Research Institute (IFPRI).
    5. Pingali, P. L. & Traxler, G., 2002. "Changing locus of agricultural research: will the poor benefit from biotechnology and privatization trends?," Food Policy, Elsevier, vol. 27(3), pages 223-238, June.
    6. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
    7. repec:iwt:worppr:h042064 is not listed on IDEAS
    8. Freeman, H. Ade & Kaguongo, Wachira, 2003. "Fertilizer market liberalization and private retail trade in Kenya," Food Policy, Elsevier, vol. 28(5-6), pages 505-518.
    9. Omamo, Steven Were & Mose, Lawrence O., 2001. "Fertilizer trade under market liberalization: preliminary evidence from Kenya," Food Policy, Elsevier, vol. 26(1), pages 1-10, February.
    10. Byerlee, Derek, 1998. "The search for a new paradigm for the development of national agricultural research systems," World Development, Elsevier, vol. 26(6), pages 1049-1055, June.
    11. 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).
    12. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Kherallah, Mylene & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2002. "Reforming Agricultural Markets In Africa," Food Policy Statements 16585, CGIAR, International Food Policy Research Institute (IFPRI).
    14. Spielman, David J., 2007. "Pro-poor agricultural biotechnology: Can the international research system deliver the goods?," Food Policy, Elsevier, vol. 32(2), pages 189-204, April.
    15. Byerlee, Derek & Fischer, Ken, 2002. "Accessing Modern Science: Policy and Institutional Options for Agricultural Biotechnology in Developing Countries," World Development, Elsevier, vol. 30(6), pages 931-948, June.
    16. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2009. "Do Fertilizer Subsidies Affect the Demand for Commercial Fertilizer? An Example from Malawi," 2009 Conference, August 16-22, 2009, Beijing, China 51606, International Association of Agricultural Economists.
    17. nan, 2002. "Reforming agricultural markets in Africa: Achievements and challenges," IFPRI books, International Food Policy Research Institute (IFPRI), number 0-8018-7145-X edited by Delgado, Christopher L.; Gabre-Madhin, Eleni Z.; Johnson, Michael; Kherallah, Mylene; Minot, Nichola, Q3.
    18. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
    19. Minot, Nicholas & Benson, Todd, 2009. "Fertilizer subsidies in Africa, are vouchers the answer?," Issue Briefs 55510, CGIAR, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Gorter, Harry & Tsur, Yacov, "undated". "Towards a Genuine Sustainability Standard for Biofuel Production," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188419, International Consortium on Applied Bioeconomy Research (ICABR).
    2. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "What is the Scope for Increased Fertilizer Use in Kenya?," Food Security International Development Working Papers 135283, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Anwar Naseem & David J. Spielman & Steven Were Omamo, 2010. "Private-sector investment in R&D: a review of policy options to promote its growth in developing-country agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 143-173.
    4. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.
    5. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "Are Farmers Under-Utilizing Fertilizer? Evidence from Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126739, International Association of Agricultural Economists.
    6. Krausova, Marika & Banful, Afua Branoah, 2010. "Overview of the agricultural input sector in Ghana," IFPRI discussion papers 1024, International Food Policy Research Institute (IFPRI).
    7. 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.
    8. Spielman, David J. & Kolady, Deepthi E. & Cavalieri, Anthony & Rao, N. Chandrasekhara, 2014. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," Food Policy, Elsevier, vol. 45(C), pages 88-100.
    9. 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.
    10. Spielman, David J. & Byerlee, Derek & Alemu, Dawit & Kelemework, Dawit, 2010. "Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles," Food Policy, Elsevier, vol. 35(3), pages 185-194, June.
    11. Spielman, David J. & Zambrano, Patricia, 2013. "Policy, investment, and partnerships for agricultural biotechnology research in Africa: Emerging evidence," IFPRI book chapters, in: Falck-Zepeda, Jose Benjamin; Gruère, Guillaume P.; Sithole-Niang, Idah (ed.), Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara, chapter 7, pages 183-205, International Food Policy Research Institute (IFPRI).
    12. Catherine Ragasa & Antony Chapoto, 2017. "Moving in the right direction? The role of price subsidies in fertilizer use and maize productivity in Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 329-353, April.
    13. Chatura Sewwandi Wijetunga & Katsuhiro Saito, 2017. "Evaluating the Fertilizer Subsidy Reforms in the Rice Production Sector in Sri Lanka: A Simulation Analysis," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(1), pages 1-3.
    14. Minten, Bart & Koru, Bethlehem & Stifel, David, 2013. "The last mile(s) in modern input distribution: Evidence from northwestern Ethiopia," ESSP research notes 24, International Food Policy Research Institute (IFPRI).
    15. Spielman, David J. & Ma, Xingliang, 2014. "Intellectual property rights, technology diffusion, and agricultural development: Cross-country evidence," IFPRI discussion papers 1345, International Food Policy Research Institute (IFPRI).
    16. Spielman, David J. & Mekonnen, Dawit K. & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters, in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4, International Food Policy Research Institute (IFPRI).
    17. Genti Kostandini & Roberto La Rovere & Zhe Guo, 2016. "Ex Ante Welfare Analysis of Technological Change: The Case of Nitrogen Efficient Maize for African Soils," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 147-168, March.
    18. Chirwa, Themba G., 2010. "Program evaluation of agricultural input subsidies in Malawi using treatment effects: Methods and practicability based on propensity scores," MPRA Paper 20878, University Library of Munich, Germany.
    19. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    20. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(02), pages 1-18, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:itic10:188084. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/icabrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.