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Welfare Effects of Vegetable Commercialization: Evidence from Smallholder Producers in Kenya

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  • Muriithi, Beatrice
  • Matz, Julia Anna

Abstract

We investigate the impact of smallholder vegetable commercialization through the export and domestic market channels on household income and assets in Kenya. We use a survey panel dataset, which allows us to control for unobserved heterogeneity across households, and show that the commercialization of vegetables through both market channels contributes positively to welfare, even when addressing the issue of selection into commercialization. While the production of vegetables for the export market is consistently associated with income in a positive way, the results for asset holdings as the measure of household welfare are weaker and supportive only for the domestic market channel, which weakens the notion of smallholder commercialization being a “pro-poor” strategy.

Suggested Citation

  • Muriithi, Beatrice & Matz, Julia Anna, 2014. "Welfare Effects of Vegetable Commercialization: Evidence from Smallholder Producers in Kenya," Discussion Papers 166029, University of Bonn, Center for Development Research (ZEF).
  • Handle: RePEc:ags:ubzefd:166029
    DOI: 10.22004/ag.econ.166029
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    1. Sibande, Lonester & Bailey, Alastair & Davidova, Sophia, 2017. "The impact of farm input subsidies on maize marketing in Malawi," Food Policy, Elsevier, vol. 69(C), pages 190-206.
    2. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    3. Islam, A.H.M.S., 2018. "Impact of Integrated Aquaculture-agriculture Value Chain Participation on Welfare of Marginalized Indigenous Households in Bangladesh: A Panel Data Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277412, International Association of Agricultural Economists.
    4. Muriithi, B. & Gichungi, H., 2018. "Effect of Technology Innovation on Gender Roles: A case of Fruit Fly IPM Strategy on Women s Decision Making in Mango Production and Marketing in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277398, International Association of Agricultural Economists.
    5. Abu Hayat Md. Saiful Islam & Joachim Braun & Andrew L. Thorne-Lyman & Akhter U. Ahmed, 2018. "Farm diversification and food and nutrition security in Bangladesh: empirical evidence from nationally representative household panel data," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(3), pages 701-720, June.
    6. Khor, L.Y. & Zeller, M., 2018. "Storing a staple crop for own consumption: Linkages to food security," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277244, International Association of Agricultural Economists.
    7. Kebede Manjur Gebru & Maggi Leung & Crelis Rammelt & Annelies Zoomers & Guus van Westen, 2019. "Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 11(3), pages 1-28, January.
    8. Ogutu, Sylvester Ochieng & Goedecke, Theda & Qaim, Matin, 2017. "Agricultural Commercialization and Nutrition in Smallholder Farm Households," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261285, European Association of Agricultural Economists.
    9. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    10. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    11. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.
    12. Joshi, N.P., 2018. "Factors affecting adoption of commercial vegetable farming among vegetable growers in Nepal: A probit analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276041, International Association of Agricultural Economists.
    13. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    14. Ogutu, Sylvester Ochieng & Goedecke, Theda & Qaim, Matin, 2017. "Agricultural Commercialization and Nutrition in Smallholder Farm Households," GlobalFood Discussion Papers 257242, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Andy McKay & Chiara Cazzuffi & Emilie Perge, 2018. "The impact of commercialization of rice on household welfare in rural Vietnam," WIDER Working Paper Series 130, World Institute for Development Economic Research (UNU-WIDER).
    16. 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.
    17. Sylvester O. Ogutu & Matin Qaim, 2018. "Commercialization of the small farm sector and multidimensional poverty," GlobalFood Discussion Papers 269561, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    18. Pierluigi Montalbano & Rebecca Pietrelli & Luca Salvatici, 2017. "Market chain participation and food security: the case of the Ugandan maize farmers," Working Papers 2/17, Sapienza University of Rome, DISS.
    19. Justus Ochieng & Beatrice Knerr & George Owuor & Emily Ouma, 2016. "Commercialisation of Food Crops and Farm Productivity: Evidence from Smallholders in Central Africa," Agrekon, Taylor & Francis Journals, vol. 55(4), pages 458-482, October.

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    Keywords

    Agribusiness; Environmental Economics and Policy; International Relations/Trade; Resource /Energy Economics and Policy;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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