The Future of Smallholder Farming in Eastern Africa - Uganda ...

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CHAPTER FOUR Market Liberalisation and Agriculture in Kenya Stephen Njuguna Karingi and Hezron Omare Nyangito
Market Liberalisation and Agriculture in Kenya Kenya’s Economy Dependence on Agriculture Kenya’s agricultural sector is an important stimulus for economic growth, with a growth multiplier of 1.64 (Block and Timmer, 1994). For every 1 percent growth in agriculture, the overall economy grows by 1.64 percent. Agriculture is the mainstay of the country’s economy, providing over 24% of GDP (measured in constant 1982 prices), 53% of merchandise export-earnings and direct employment for 62% of the labour force. The Sessional Paper No. 2 of 1994 on national food policy underscores the importance of agriculture in meeting national food supply needs for all Kenyans in all regions (Republic of Kenya, 1994). This requires food production to increase at a rate greater than the population growth rate, currently estimated at 2.1 percent 1 , taking into account the fact that 56 percent of the population now lives below the poverty rate. Dependency on the agriculture sector for export earnings and employment generation will continue for a while because more than 80 percent of the population engage in agriculture and live in rural areas. In fact, smallholder agriculture accounts for the largest share of new labour (Republic of Kenya, 1997). Additionally, 33 percent of manufacturing sector’s output is based on agricultural inputs (Pearson et al. 1995). Thus, with its prominence in total output, employment and trade, the growth of the agriculture sector will be relied upon as a key stimulant for rapid economic growth, increase in income and job creation for Kenyans. Recent Trends in Agricultural Sector Production Agricultural sector’s output growth rate slowed markedly in the 1960s and 1970s from nearly five percent per year to less than three percent (Pearson et al. 1995). Recent rates have been less than the rate of population growth (Table 1). Table 1: Trends in Real Agricultural GDP Growth Rates in Kenya Year Real agricultural GDP growth rates 1971-1975 6.40 1976-1980 3.89 1981-1985 3.14 1986-1990 4.25 1991-1995 0.11 1996-1998 2.42 1998 1.5 2 1999 1.2 2 Source: Mbithi, 2000. The 1970s average real agricultural GDP growth rates were four times higher than the 1990s’. The decline in the 1990s has serious implications for Kenya’s economic 1 Kenya’s population census of 1999 showed dramatic decline in population growth rate, possibly due to population control measures and impacts of HIV/AIDS pandemic. The HIV/AIDS pandemic has serious implications for agricultural production with regard to its impact on labour productivity. 2 Obtained from Republic of Kenya, 2000.
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Part One - Agricultural Productivit
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I. Introduction Agricultural Produc
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came about from expansion of cultiv
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study, therefore, limited itself to
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Land allocation and yields of 12 cr
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Table 6: Key economic variables for
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local seed in absolute terms and th
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Table 11: Crosscutting priority con
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Table 13: General constraints to ma
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These results clearly demonstrate t
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Table 18: Crosscutting constraints
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V. Policy Implications The findings
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References Appleton, Simon (2001).
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1.0 BACKGROUND 1.1 Introduction Low
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egins with a summary of the literat
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Source: National Wetlands Conservat
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shillings (§37-38). Every landowne
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Similarly, Howard (1995) used socia
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Uganda may well have more than a qu
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factors that explain household leve
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of inputs 18 , pests and diseases,
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(PMA p. 27). It also requires impro
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agriculturalists, who still do not
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to have covered 30,000 ha. During t
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4.0 RESEARCH METHODOLOGY The breadt
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• What is the current extent of w
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Figure 2. Changes in Sources of Com
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Figure 5. Proportion of Households
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estimates are remarkably consistent
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FSI - Percentage by District Distri
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was corrected using the White-Huber
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utilization for the household. Howe
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The nature of the structures to con
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impact of irrigation on horticultur
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growing population. Wetland protect
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APPENDICES Appendix 1. The Wetlands
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Appendix 2. THE 5V’s PRIORITY CLA
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Appendix 5. Determinants of Product
Page 77 and 78: Estimated covariances = 79 Number o
Page 79 and 80: International Food Policy Research
Page 81 and 82: Scherr, Sara J., 1999b. Poverty-env
Page 83 and 84: Land Tenure, Agricultural Productiv
Page 85 and 86: 1.3 Statement of the problem Land s
Page 87 and 88: In order to achieve these objective
Page 89 and 90: densely populated Nyeri and Kakameg
Page 91 and 92: Figure 3: Conceptual Model Type of
Page 93 and 94: Figure 4: Location of the Study Dis
Page 95 and 96: By 2001, land demarcation and regis
Page 97 and 98: 3.4 Survey Design The survey was un
Page 99 and 100: 3.5.3 Model of Environmental Degrad
Page 101 and 102: questionnaire (Figure 8). Prominent
Page 103 and 104: Figure 10: Availability of hired la
Page 105 and 106: Figure 13 shows the level of cultiv
Page 107 and 108: joint significance test on the 4 dr
Page 109 and 110: Table 8: Regression Results on Maiz
Page 111 and 112: was classified into three categorie
Page 113 and 114: Table 9: Tobit Analysis with Enviro
Page 115 and 116: 5.0 CONCLUSIONS AND POLICY IMPLICAT
Page 117 and 118: 5.5 Access to Market A number of fa
Page 119 and 120: FAO (2003b). “Women and Food Secu
Page 121 and 122: Omiti John and Paul Obunde (2002).
Page 123 and 124: Annex 1: Pearson Correlation Coeffi
Page 125 and 126: SEXHH SEXLUSER TSECUR VEGCP1 CHILDE
Page 127: Part two - Agricultural Markets
Page 131 and 132: farms show annual fluctuations, wit
Page 133 and 134: Figure 2: Recent trends in domestic
Page 135 and 136: 5. The Model The interest of this s
Page 137 and 138: sources for each sector. α IM ji a
Page 139 and 140: Savings Households’ savings are a
Page 141 and 142: The value-added price is defined th
Page 143 and 144: Specifically, the Government polici
Page 145 and 146: Table 5: Calculated Tariff Rates (%
Page 147 and 148: disincentive to farmers. Inability
Page 149 and 150: competitiveness. The second one is
Page 151 and 152: Table 7: Wage Rates and Labour Inco
Page 153 and 154: Similar simulation is undertaken in
Page 155 and 156: References Block, S. and C.P. Timme
Page 157 and 158: Tyler, G. J. and Akinboade, O. 1992
Page 159 and 160: (A.10) ai ∑ P ϖ P i=1,...,3; j =
Page 161 and 162: (A.32) price (A.33) P Q = P ( 1+ td
Page 163 and 164: Table A.2: Variables of KEGEM Varia
Page 165 and 166: VA A i Efficiency parameter in valu
Page 167 and 168: CHAPTER FIVE Post-Liberalization Ma
Page 169 and 170: As alluded to earlier, initial agri
Page 171 and 172: directly to dairy farmers as animal
Page 173 and 174: to engage in this new role, the gov
Page 175 and 176: 2.0 RESEARCH METHODOLOGY 2.1 Overal
Page 177 and 178: markets with minor gaps in data ser
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Price-series correlations are conve
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Migori Awendo Postliberalization 1,
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model depends on whether or not the
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Table 6b--Unit root tests for price
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Table 8a--Unit root tests for OLS r
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3.3 The Role of Infrastructure and
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Table 13--Reported distances from t
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Table 15--Reported maize storage pr
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Table 17--Traders’ perception of
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3.3.6.2 Awareness of the Liberaliza
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Retailer (open-air market) 21 13 7
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3.4 Maize Marketing Costs Traders w
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3.4.4 License and Market Fees Accor
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5.Develop farmers’ and traders’
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Coulter, J., and J. A. F. Compton.
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Meilink, A. H. 1987. Food consumpti
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Figure 1 Maize surplus and deficit
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Figure 3 Trends in Maize Prices 199
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Price per 90kg bag (Kshs) Mbeere Di
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Figure 4 Modes of transporting maiz
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Figure 6: Limitations to storage ca
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Figure 8: Problems experienced in a
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CHAPTER SIX Grain Marketing in Addi
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A third, related explanation argues
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educed marketing costs related to p
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1.4. Research questions This study
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1.6. Organization of the report Thi
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the cases, respectively (Table 2.4)
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Brokers believe that most regional
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There is also a close relationship
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Table 2.14: Buyers’ methods for i
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Source: Survey, 2002. Table 2.18: D
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Table 2.22: Method used to grade di
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Table 2.25: Access to credit broker
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It has been reported that grain pur
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3. GRAIN RETAILERS Retailers serve
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Like brokers, retailers use cash or
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Table 3.11: Buyers’ information a
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Table 3.14: Retailers’ views of g
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Getting reliable price information
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Table 4.4: How do you set a sales p
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Table 4.7: Means of settling disput
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a.m. The survey included wholesale
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Table 5.3: Instability index of dai
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Table 5.7: Seasonality index of who
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Figure 5.3: Ratio of wholesale to r
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Table 5.8: Results of stationary te
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Table 5.10: Summary of Granger caus
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holiday sales. The results of the r
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Table 6.1: Storage capacity of the
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Intermarket grain flow is coordinat
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• a legal, regulatory, and enforc
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REFERENCES Al-Hassen, R., A. Dorwar
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Seppala, P. 1998. Decisive liberali
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achieve some welfare objective. The
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Annex Table 2.10: Have you faced di
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Annex Table 2.21: Do you consider p
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Annex Table 3.3: Cost structure of
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Annex Table 4.2: Complementary acti
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CHAPTER SEVEN Post-Harvest Grain Ma
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only (see Abebe 2000: 80-83). That
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of processing as an important post-
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occur at all stages of post-harvest
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Endowment & access to Resources (e.
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Figure 2: The Study Areas (shaded a
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(6) β i = β 0 λ i , 0
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Intercrop differences Liquidity con
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eplace old animals (19 percent of h
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Table 5. Number and capacity of gra
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Table 7b.Estimated grain loss durin
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7.1.3. Grain Marketing Practices an
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1.8 Producers' price 1.6 1.4 1.2 1
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next season, grain prices tend to b
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Table 13: Regression results (Tobit
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of grain production was reportedly
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instruments to mitigate price risks
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Coulter, J. and G. Onumah, (2002).
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Appendix: Supplementary Tables Appe
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CHAPTER EIGHT Collective Action in
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The objectives of DRS were to popul
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increasing participation. Thus, the
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Table 2. Perceived change in benefi
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unsatisfactory (Table 8). Flaws in
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Table 14. Measures of wealth status
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Results from Regression Analysis Ta
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However, to maintain these benefits
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Table 18. Determinants of participa
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_______ 1981. Common property and c
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Management Regulations and Enforcem
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In theory, under PFM, the governmen
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3.2 Desk study The desk study invol
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Table 1: Number and gender of indiv
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Poverty Increase in number of fishe
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Table 5: Responses given by various
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wages after the catch is sold (see
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70 60 No of respondents 50 40 30 20
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4.2.3 Lack of attention to social i
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5.3 Regulate the construction of re
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REFERENCES Allison, E. H., and P. M
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APPENDIXES Appendix A: Districts of
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Questions and responses Government
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Questions and responses Lack of coo
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CHAPTER TEN Animal Health Service D
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• Individuals are selected for tr
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Makueni district was selected becau
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1.5 Justification of the study The
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more sustainable (Leonard 1993; Uma
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of defined roles for CBAHWs within
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Interviews with veterinary officers
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The estimated model was of the form
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Gender remains a sensitive issue. P
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The most common ailments and diseas
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4.3 Factors influencing the level o
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Table 9 -- Factors influencing the
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Table 10 - Factors determining the
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Table 12 -- Current mean numbers of
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Figure 4: Percentage of household h
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CBAHWs were the most utilized chann
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Users of veterinarians’ services
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Table 18 -- Levels of incomes and l
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higher average calving per cow, whi
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Table 21 -- CBAHWs’ ranking of sp
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epresentative of livestock keepers
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Despite the restriction imposed by
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veterinarians. Such associations co
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References Akabwai, D., V. Shean, a
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Johnson, P. J., and C. Chahuares. 1
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Appendix 1: The Logistic Procedure
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Social Capital and Sustainable Agri
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1.1 Soil conservation programs and
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1.3 Research Objectives and Hypothe
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Institutional and Policy factors -
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land pressure is high (Holden 1991)
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include density of membership in gr
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then summed up according to increas
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Social capital, resource use, and a
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Table 4.4 Farmers’ perception of
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Table 4.5: Empowerment and politica
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Table 4.8: Indicators of collective
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Table 4.10: Comparison of means of
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5. The influence of social capital
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especially when considered on an ad
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households may pay less attention t
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Table 5.3 Determinants of terracing
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and Gichuki 1994). In the 1940s, th
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Table 5.4. Determinants of soil con
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5.3. Social capital, resource use,
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6. Implications for policy and prog
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essential for the formation of exte
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BIBLIOGRPAHY Admassie, Y., L. I. Mw
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Gambetta, D. 1988. Can we trust tru
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Social capital and watershed develo
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Obare, G. A., S. W. Omamo, and J. C
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Washington D.C.: The World Bank Tem
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Appendix: A list of Contributors Ab
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Appendix: Projects Supported Under
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IFPRI Eastern Africa Food Policy Ne
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