Journal of Development and Agricultural Economics
Subscribe to JDAE
Full Name*
Email Address*

Article Number - C42894163812


Vol.9(5), pp. 111-120 , May 2017
DOI: 10.5897/JDAE2016.0773
ISSN: 2006-9774



Full Length Research Paper

Determinants of small-scale mango farmers’ market channel choices in Kenya: An application of the two-step Cragg’s estimation procedure



Davis Nguthi Muthini
  • Davis Nguthi Muthini
  • Department of Agricultural Economics, University of Nairobi, P.O Box 29053-00625, Nairobi, Kenya.
  • Google Scholar
Rose Adhiambo Nyikal
  • Rose Adhiambo Nyikal
  • Department of Agricultural Economics, University of Nairobi, P.O Box 29053-00625, Nairobi, Kenya.
  • Google Scholar
David Jakinda Otieno
  • David Jakinda Otieno
  • Department of Agricultural Economics, University of Nairobi, P.O Box 29053-00625, Nairobi, Kenya.
  • Google Scholar







 Received: 06 September 2016  Accepted: 20 February 2017  Published: 31 May 2017

Copyright © 2017 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


The study estimates small-scale mango farmers’ choice of market channels using the Cragg’s two-step procedure where the farmer decides on the channel in the first step and the proportion sold to the selected channel in the second step. Cross section data was collected from a sample of 224 mango farmers selected through multistage sampling just after the mango season. The study was carried out in Makueni County in Eastern Kenya. The county is leading in production of mangoes in Kenya, having produced over 146,000 tonnes valued at over 18 million US dollars, in 2015. The data was analyzed using Cragg’s two step regression model. The first step assessed factors that determine choice of a particular channel, while the second step assessed factors that influence the proportion of produce sold to the channel. Results show that socio-economic factors significant in the first stage are not necessarily significant in the second stage. In some cases, the direction of effect reverses. Factors such as distance to tarmac road, number of mango trees in the farm, membership in producer marketing groups, training in mango agronomy, and access to extension services affect choice of export market channel. Only membership to mango marketing groups significantly influences proportion sold. Household income, distance to tarmac, number of trees, market information, and gender significantly affect choice of the direct market channel. The direct market channel earns farmers the largest margins, followed by the export channel. However, majority of farmers sell to brokers followed by export channel.  It was found that despite being aware that they could fetch higher prices through direct selling, they lacked financial capacity, transport resources, and information on market locations and requirements. Policies need to enhance financial capacity of farmers, as well as expand efforts to disseminate timely and accurate market information.

 

Key words: Small-scale farmers, mango market channels, Kenya.

Agricultural Business Development (2011). The Mango Sector in Eastern Kenya: Eastern Region Mango Census and Baseline Survey. Final report, Agricultural Business Development, Nairobi.

 

Bogiwe G, Masuku M (2012). Factors Affecting the Choice of Marketing Channel by Vegetable Farmers in Swaziland. Sustain. Agric Res. 2(1).

 
 

Cragg JG (1971). Some statistical models for limited dependent variables with application to the demand for durable goods. Econometrica 39:829-844
Crossref

 
 

Fafchamps M, Hill R (2005). Selling at the Farm gate or Traveling to Market. Am. J. Agric. Econ. 87(3):717-734.
Crossref

 
 

Fischer E, Qaim M (2012). Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya. World Dev. 40(6):1255-1268.
Crossref

 
 

Government of Kenya (2010). Agricultural Sector Development Strategy 2010–2020. Government Printer, Nairobi, Kenya.

 
 

Greene WH (2003). Econometric analysis. Fifth edition. New Jersey, Prentice Hall.

 
 

Katchova AL, Miranda MJ (2004). Two-Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions. Am. J. Agric. Econ. 86(1):88-102.
Crossref

 
 

Kenya National Bureau of Statistics (2009). Makueni District Multiple Indicator Cluster Survey, 2008. Nairobi, Kenya.

 
 

Kherallah M, Delgado C, Gabre-Madhin E, Minot N, Johnson N (2002). The road half traveled: agricultural market reform in Sub-Saharan Africa. OCL 9(6):416-425.
Crossref

 
 

Kirsten J, Doward A, Poulton C, Vink N (2008). Institutional Economics, Perspectives on African Agricultural Development. International Food Policy Research Institute, Washington

 
 

Koning N, Andersen P (2007). Agricultural Trade Liberalization and the Least Developed Countries. First Edition. Wageningen, Netherlands, Springer.
Crossref

 
 

Kothari CR (2004). Research Methodology; Methods and Techniques. Second Edition. New Delhi, New Age International Publishers.

 
 

Martey E, Annin K, Nimo AW, Attoh C (2012). Does Access to Market Information Determine the Choice of Marketing Channel among Smallholder Yam Farmers in the Brong Ahafo Rgion of Ghana ? A Multinomial Logit Regression Analysis. J. Econ. Sustain. Dev. 3(12):18-28.

 
 

Neven D, Odera MM, Reardon T, Wang H (2009). Kenyan supermarkets, emerging middle-class horticultural farmers, and employment impacts on the rural poor. World Dev. 37(11):1802-1811.
Crossref

 
 

Okello JJ, Narrod C, Roy D (2007). Food safety requirements in African green bean exports and their impact on small farmers. IFPRI discussion paper 00737. Washington, DC.

 
 

Olwande J, Smale M, Mathenge MK, Place F, Mithöfer D (2015). Agricultural marketing by smallholders in Kenya: A comparison of maize, kale and dairy. Food Policy 52:22-32.
Crossref

 
 

Omiti J, McCullough E, Otieno D, Madelon M, Nyanamba T, Murage A (2006). Participatory Prioritization of Issues in Smallholder Agricultural Commercialization in Kenya. KIPPRA Discussion Paper No. 64. Nairobi, Kenya.

 
 

Panda RK, Sreekumar (2012). Marketing Channel Choice and Marketing Efficiency Assessment in Agribusiness. J. Int. Food Agribus. Mark. 24(3):213-230.
Crossref

 
 

Rao EJ, Qaim M (2011). Supermarkets, farm household income, and poverty: Insights from Kenya. World Dev. 39(5):784-796.
Crossref

 
 

Schwab JA (2002). Multinomial logistic regression: Basic relationships and complete problems. 

 
 

Sebatta C, Mugisha J, Katungi E, Kashaaru A, Kyomugisha H (2014). Smallholder Farmers' Decision and Level of Participation in the Potato Market in Uganda. 11th African Crop Science Conference Proceedings, 10 -13 October 2013, Entebbe, Uganda.
Crossref

 
 

Shiferaw B, Obare G, Muricho G (2006). Rural institutions and producer organizations in imperfect markets: Experiences from Producer Marketing Groups in semi-arid eastern Kenya. CAPRi Working Paper 60. Also jointly released as ICRISAT Socioeconomics and Policy Working Paper Series No. 23. Patancheru, Andhra Pradesh: International Crops Research Institute for the Semi-Arid Tropics 40 p.

 
 

Shilpi F, Umali‐Deininger D (2008). Market facilities and agricultural marketing: evidence from Tamil Nadu, India. Agric. Econ. 39(3):281-294.
Crossref

 
 

Tsourgiannis L, Eddison J, Warren M (2008). Factors affecting the marketing channel choice of sheep and goat farmers in the region of east Macedonia in Greece regarding the distribution of their milk production. Small Rumin. Res. 79(1):87-97.
Crossref

 
 

Wooldridge JM (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.

 

 


APA Muthini, D. N., Nyikal R. A. & Otieno, D. J. (2017). Determinants of small-scale mango farmers’ market channel choices in Kenya: An application of the two-step Cragg’s estimation procedure. Journal of Development and Agricultural Economics, 9(5), 111-120.
Chicago Davis Nguthi Muthini, Rose Adhiambo Nyikal and David Jakinda Otieno. "Determinants of small-scale mango farmers’ market channel choices in Kenya: An application of the two-step Cragg’s estimation procedure." Journal of Development and Agricultural Economics 9, no. 5 (2017): 111-120.
MLA Davis Nguthi Muthini, Rose Adhiambo Nyikal and David Jakinda Otieno. "Determinants of small-scale mango farmers’ market channel choices in Kenya: An application of the two-step Cragg’s estimation procedure." Journal of Development and Agricultural Economics 9.5 (2017): 111-120.
   
DOI 10.5897/JDAE2016.0773
URL http://academicjournals.org/journal/JDAE/article-abstract/C42894163812

Subscription Form