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

Author

Listed:
  • Kirimi, Lilian
  • Sitko, Nicholas J.
  • Jayne, Thomas 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 from the standpoint of governments of transitioning from discretionary trade and marketing policy to adherence to more systematic rules-based policies. Nurturing credible commitment in regard to trade policy is likely to promote market predictability and therefore, lead to greater supplies and price stability in food markets during times of domestic production shortfalls. 9. Consider whether current proposals for international stockholding would be effective in the presence of domestic transport capacity constraints. International physical or financial reserves would not be able to relieve localized food production shortfalls unless local transport capacity is adequate to absorb sufficient imports within a concentrated period or unless import licenses are provided or the state carries out or contracts for the importation from the international stock source.

Suggested Citation

  • Kirimi, Lilian & Sitko, Nicholas J. & Jayne, Thomas 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," Food Security International Development Working Papers 101172, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midiwp:101172
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    File URL: http://ageconsearch.umn.edu/record/101172/files/idwp111.pdf
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. Nyoro, James K. & Kiiru, M.W. & Jayne, Thomas S., 1999. "Evolution of Kenya's Maize Marketing Systems in the Post-liberalization Era," Food Security Collaborative Working Papers 55148, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. 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.
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    1. repec:eee:jfpoli:v:69:y:2017:i:c:p:243-255 is not listed on IDEAS
    2. Mohajan, Haradhan, 2014. "Food and Nutrition Scenario of Kenya," MPRA Paper 56218, University Library of Munich, Germany, revised 23 May 2014.
    3. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    4. Sitko, Nicholas J. & Jayne, T.S. & Burke, William J. & Muyanga, Milu, 2017. "Food System Transformation and Market Evolutions: An Analysis of the Rise of Large-Scale Grain Trading in Sub-Saharan Africa," Food Security International Development Working Papers 263195, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Smale, Melinda & Olwande, John, 2011. "Is Older Better? Maize Hybrid Change on Household Farms in Kenya," Food Security International Development Working Papers 118474, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Moser, Christine & Hoffmann, Vivian, 2015. "Firm heterogeneity in food safety provision: Evidence from aflatoxin tests in Kenya:," IFPRI discussion papers 1416, International Food Policy Research Institute (IFPRI).
    7. Moser, Christine & Hoffmann, Vivian & Ordonez, Romina, 2014. "Firm heterogeneity in food safety provision: evidence from aflatoxin tests in Kenya," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170588, Agricultural and Applied Economics Association.
    8. Okello, Julius J. & Kirui, Oliver K. & Gitonga, Zachary M. & Njiraini, Georgina W. & Nzuma, Jonathan M., 2014. "Determinants of Awareness and Use ICT-based Market Information Services in Developing-Country Agriculture: The Case of Smallholder Farmers in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 0(Number 3), pages 1-20, August.
    9. Stephen P. D’Alessandro & Jorge Caballero & John Lichte & Simon Simpkin, 2015. "Kenya," World Bank Other Operational Studies 23350, The World Bank.
    10. Hoffmann, Vivian & Mutiga, Samuel & Harvey, Jagger & Nelson, Rebecca & Milgroom, Michael, 2013. "Asymmetric Information and Food Safety: Maize in Kenya," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151288, Agricultural and Applied Economics Association.
    11. Hoffmann, Vivian & Mutiga, Samuel & Harvey, Jagger & Nelson, Rebecca & Milgroom, Michael, 2013. "Aflatoxin Contamination of Maize in Kenya: Observability and Mitigation Behavior," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 155024, Agricultural and Applied Economics Association.
    12. Mather, David & Boughton, Duncan & Jayne, Thomas S., 2011. "Smallholder Heterogeneity and Maize Market Participation in Southern and Eastern Africa: Implications for Investment Strategies to Increase Marketed Food Staple Supply," Food Security International Development Working Papers 118473, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. repec:ags:areint:256850 is not listed on IDEAS
    14. 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.
    15. Melinda Smale & John Olwande, 2014. "Demand for maize hybrids and hybrid change on smallholder farms in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 409-420, July.
    16. repec:gam:jsusta:v:10:y:2018:i:3:p:617-:d:133797 is not listed on IDEAS
    17. Sitko, Nicholas & Jayne, T.S., 2014. "Demystifying the Role of Grain Assemblers in the Rural Maize Markets of Eastern and Southern Africa," Food Security Collaborative Working Papers 176628, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    18. Mather, David & Boughton, Duncan & Jayne, T.S., 2013. "Explaining smallholder maize marketing in southern and eastern Africa: The roles of market access, technology and household resource endowments," Food Policy, Elsevier, vol. 43(C), pages 248-266.
    19. Argent,Jonathan Thompson & Begazo Gomez,Tania Priscilla, 2015. "Competition in Kenyan markets and its impact on income and poverty : a case study on sugar and maize," Policy Research Working Paper Series 7179, The World Bank.
    20. Sitko, Nicholas J. & Jayne, T.S., 2014. "Exploitative Briefcase Businessmen, Parasites, and Other Myths and Legends: Assembly Traders and the Performance of Maize Markets in Eastern and Southern Africa," World Development, Elsevier, vol. 54(C), pages 56-67.
    21. Mayaka, Venny K., 2013. "An Assessment Of Dry Beans Market Integration In Selected Markets In Kenya," Research Theses 157599, Collaborative Masters Program in Agricultural and Applied Economics.

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    Agricultural and Food Policy; Food Security and Poverty;

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