Abstract

Access to markets by Smallholder farmers has conventionally been constrained by lack of market information. Efforts to strengthen access of farmers to markets has triggered the mushrooming of several projects that embrace ICT tools in promoting access to competitive market information. Nevertheless, most farmers still lack access to accurate market information, such as existing commodity prices. This study examines the determinants of the use of ICT tools among smallholder farmers for agricultural transactions. The study uses Kenya Agricultural Commodity Exchange (KACE), one of the ICT-based marketing platform, as the case study. The objectives of the research are to determine the factors that influence access to agricultural information, and establishing factors that determine the intensity of use of ICT tools in accessing agricultural information. Survey was conducted among 136 smallholder farmers in Bungoma County. Both purposive, and multi-stage sampling were used to obtain the sample for this research. The study finds that several farmer characteristics, farm and capital endowment factors affect the use of ICT tools, particularly mobile phones. Gender, age, literacy level, affordability, perceived importance, mobile ownership and group membership were found to be significant in influencing the decision to use KACE ICT tools and the intensity of use of these tools for agricultural transaction activities. The study further recommends for policies that support the expansion of ICT projects, training on their applications and sensitization on the use of these platforms. The study suggests for policies to address gender disparities on access and use of ICT tools for agricultural transaction.

Highlights

  • Agricultural information is a critical ingredient to improving small-scale agricultural production and linking farmers to profitable markets

  • In most rural regions, the smallholder farmers and small-scale entrepreneurs are consistently incapacitated by lack of information on prevailing market prices before they travel to the market

  • This study examines the factors that determine the use of ICT tools for agricultural transactions by assessing the factors that affect mostly these tools, with more emphasis on mobile phones, which is undoubtedly the most popularly owned and adopted new generation ICT tool among farm households, for agricultural purposes

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Summary

Introduction

Agricultural information is a critical ingredient to improving small-scale agricultural production and linking farmers to profitable markets. This will translate to better rural livelihoods in terms of food security locally and regionally. In most rural regions, the smallholder farmers and small-scale entrepreneurs are consistently incapacitated by lack of information on prevailing market prices before they travel to the market. This has been occasioned by poor communication facilities forcing farmers to often rely on middlemen who take advantage to exploit them. Organized marketing activities coupled with inadequate marketing experience, and poor access to farm capital, have further exacerbated farmers’ woes (Munyua, 2007)

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