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Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya

Author

Listed:
  • Elisabeth Fischer

    (Georg-August-University Göttingen)

  • Matin Qaim

    (Georg-August-University Göttingen)

Abstract

This article investigates determinants and impacts of cooperative organization, using the example of smallholder banana farmers in Kenya. Farmer groups are inclusive of the poor, although wealthier households are more likely to join. Employing propensity score matching, we find positive income effects for active group members. Yet price advantages of collective marketing are small, and high-value market potentials have not yet been tapped. Beyond prices, farmer groups function as important catalysts for innovation adoption through promoting efficient information flows. Some wider implications are discussed under what conditions collective action is useful, and through what mechanisms the potential benefits emerge.

Suggested Citation

  • Elisabeth Fischer & Matin Qaim, 2010. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 48, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:048
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_48.pdf
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    References listed on IDEAS

    as
    1. Felicitas Nowak-Lehmann D. & Inmaculada Martínez-Zarzoso & Dierk Herzer & Stephan Klasen & Axel Dreher, 2009. "In Search for a Long-run Relationship between Aid and Growth: Pitfalls and Findings," Ibero America Institute for Econ. Research (IAI) Discussion Papers 196, Ibero-America Institute for Economic Research.
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    Keywords

    agricultural markets; smallholder farmers; collective action; cooperative organization; Kenya; East-Africa;

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