Abstract
Commercialization of the smallholder maize sector in Kenya necessitates improving the ability of farmers to efficiently participate in both the formal and informal maize markets. Smallholder maize farmers of Kwanza district, Trans Nzoia County, however, have limited access to formal maize markets. This limits their competitiveness in the market hence a reduction in their returns. This study was aimed at assessing the factors that influence smallholder maize farmers’ participation in formal maize markets in the region. Multistage sampling technique was used to select 196 smallholder maize farmers from the region. Primary data was collected using semi-structured questionnaires and the Probit model used to assess the factors influencing smallholder choice of selling point. Age of household head, household size and source of market information negatively influenced the probability of the farmers selling through formal maize markets. Education level, access to credit, sorting produce, tarpaulin ownership and output price however positively influenced the probability of selling through the formal maize markets. The study recommends policies that ensure the availability and access of appropriate market information. Farmers could also be assisted in the acquisition of tarpaulin used for drying maize and other necessary infrastructure to avoid losses due to the poor post-harvest handling of their output. This will greatly help in commercialising the smallholder maize sector in the region. Keywords : Formal maize markets, Informal maize markets, Market participation, Transaction costs DOI: 10.7176/JESD/11-10-17 Publication date: May 31 st 2020
Highlights
Maize is important both as a food as well as a cash crop for many Kenyan smallholders
Conclusion and policy implication Commercialization of the smallholder maize sector in Kenya necessitates improving the ability of farmers to www.iiste.org participate efficiently in both the formal and informal maize markets
This study was aimed at assessing the factors that hindered the smallholder maize farmers in Kwanza district, Trans-Nzoia County from actively participating in formal maize markets
Summary
Maize is important both as a food as well as a cash crop for many Kenyan smallholders. It accounts for the largest share of cultivated agricultural land in the country. More than half of small-scale farmers in Kenya engage in maize farming either as a pure stand or intercropped with other crops. The small and medium scale sector accounts for over three-quarters of all maize marketed in the country annually. In Kenya, maize growing is mainly concentrated in the Rift Valley districts of Trans-Nzoia East and West, Wareng, Eldoret East and West, Nakuru and Kwanza, a region often referred to as the “Granary of Kenya” (Kwach, 2013)
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