Impact of collective marketing participation on farmers' income: Evidence from smallholder avocado farmers of Murang'a County, Kenya

Abstract

Avocado (Persea Americana) is a major crop in Kenya but its potential to generate income is limited by challenges associated with production and marketing. The objective of this study was to assess the impact of participation in collective marketing on the incomes of smallholder avocado farmers in Kigumo Sub-County, Murang'a County, Kenya. Data was collected from 300 randomly selected households comprising of 150 participants and 150 non-participants of collective marketing. Data collected included demographic characteristics, socio-economic and institutional factors, farmers' income, and market information. Propensity Score Matching (PSM) models were employed to estimate the impact of participation in collective marketing on incomes. Results showed that farmers who participated in collective marketing benefitted from increased production and better sales. Participation in avocado collective marketing increased farmers' incomes by an average of 32.95% during the three consecutive years considered (2018, 2019, and 2020). Participants produced significantly higher avocado fruits (1251.3 kg) compared to non-participants (889.7 kg) in 2020. Participants also fetched better prices of 7.5Ksh per fruit compared to non-participants who sold their fruits at 5Ksh. Based on our findings, we recommend that farmers should participate more in collective marketing so as to improve the incomes from their avocado production. Policymakers should also promote a collective marketing strategy through interventions such as improving access to avocado collection centers and provision of market infrastructures.