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Effect of transaction costs on smallholder maize market participation: Case of Kwanza District, Trans Nzoia County, Kenya
| Content Provider | Semantic Scholar |
|---|---|
| Author | Ngigi, Margaret |
| Copyright Year | 2014 |
| Abstract | Access to marketing outlets of agricultural output is essential in commercializing smallholder agriculture in developing countries, Kenya included. This also applies to maize farming, which is a major staple food and livelihood activity for smallholder farmers of Kwanza district, Trans Nzoia County, Kenya. The farmers, however, have limited access to formal maize markets thus reducing income earned from maize farming. This study was therefore aimed at assessing the effect of transaction costs on smallholder maize market participation. Multi stage sampling technique was used to select 196 smallholder maize farmers. Primary data was collected using semi structured questionnaires and a Tobit model was used to assess the factors affecting smallholder farmers’ participation in maize markets. Waiting time before receiving payment, information search costs, sorting costs, cost of rent and age of household head influenced smallholder maize market participation negatively. The study recommends policies that favour emergence of institutions (collective action and agricultural credit) and those geared towards accurate and timely market information availability and access. Farmers who sell through formal maize markets should be paid on time; finally, marketing policies should target the relatively younger individuals. This will greatly help to commercialize the smallholder maize sector in the region. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://isdsnet.com/ijds-v3n4-10.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
