Structural Characteristics and Conduct of Sweet Potato Market in Rachuonyo Region, Kenya: Perception of Sweet Potato Farmers and Traders

Abstract

Myriad studies have been conducted on commodity markets in different parts of the world. However, such studies have yielded inconsistent results on various facets of market structure and market conduct, implying that each market may have its distinctive characteristics which impact on its performance. In Sub-Saharan Africa, the growth of sweet potato industry is hindered by lack of information on sweet potato market structural characteristics. Kenya’s sweet potato industry is facing a similar challenge. This scenario calls for a baseline survey on the sweet potato market structural characteristics and conduct as a basis for subsequent robust studies on the possible nexus between the market structure, conduct and performance of the industry. The study adopted a descriptive survey design based on interpretivism research paradigm. A sample size of 384 farmers, 166 retailers and 55 wholesalers were taken. Pretested questionnaires were used to gather perception of the respondents on various parameters based on a five-point Likert scale. The views were then summarized in terms of means scores. It was established that the sweet potato market was imperfect since there were notable elements of potato differentiation and barriers to entry into the market. Such barriers included competition from other traders and uncertainties in the demand for sweet potato. The situation was exacerbated by lack of suitable storage facilities given the perishable nature of the commodity. High market concentration was noted at the wholesale level, a likely indicator of price collusion and exploitation by the few large sellers that dominated the market. In this regard, there is need to enhance value addition activities that can enable the market players especially the farmers to be more competitive within the supply chain. Efforts should also be made to eliminate the identified market barriers