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Smallholder Participation in the Commercialisation of Vegetables: Evidence from Kenyan Panel Data

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  • Muriithi, Beatrice
  • Matz, Julia Anna

Abstract

This paper describes the participation of smallholders in commercial horticultural farming in Kenya and identifies constraints and critical factors that influence their decision to participate in this industry by selling their produce. The study employs panel survey data on smallholder producers of both international (export) and domestic market vegetables and controls for unobserved heterogeneity across farmers. We find that participation of smallholders in both the domestic and export vegetable markets declined and that this trend is associated with weather risks, high costs of inputs and unskilled labour, and erratic vegetable prices, especially in the international market. Different factors are at play in determining a household’s market choice for the commercialisation of vegetables: credit is important only when vegetables are (also) exported, livestock ownership is negatively related to production for the domestic market, and distance to the nearest market town positively related to all pathways of commercialisation, for example.

Suggested Citation

  • Muriithi, Beatrice & Matz, Julia Anna, 2014. "Smallholder Participation in the Commercialisation of Vegetables: Evidence from Kenyan Panel Data," Discussion Papers 164665, University of Bonn, Center for Development Research (ZEF).
  • Handle: RePEc:ags:ubzefd:164665
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    File URL: http://ageconsearch.umn.edu/record/164665/files/ZEF_DP185.pdf
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    References listed on IDEAS

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    Cited by:

    1. Muriithi, Beatrice, 2015. "Smallholder Horticultural Commercialization: Gender Roels and Implications for Household Well-being in Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212516, International Association of Agricultural Economists.
    2. repec:ags:pojard:259682 is not listed on IDEAS
    3. Gelan, Ayele & Muriithi, Beatrice W., 2015. "Examining Returns to Scale in Smallholder Dairy Farms in East Africa," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 0(Number 3), pages 1-23, September.
    4. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.

    More about this item

    Keywords

    Agribusiness; International Relations/Trade; Marketing;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • 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
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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