Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 525

Full Length Research Paper

Economic impact of DroughtTEGO® hybrid maize in Kenya

Daniel Kyalo Willy
  • Daniel Kyalo Willy
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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Ibrahim Macharia
  • Ibrahim Macharia
  • Department of Agricultural Economics, Kenyatta University, P. O. Box 43844, 00100, Nairobi, Kenya.
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George Marechera
  • George Marechera
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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Grace Muinga
  • Grace Muinga
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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Stephen Mugo
  • Stephen Mugo
  • African Agricultural Technology Foundation (AATF), P.O. Box 286 Kiserian, 00206, Kenya.
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Ruth Rotich
  • Ruth Rotich
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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Ruth Khasaya Oniang'o
  • Ruth Khasaya Oniang'o
  • Rural Outreach Program (ROP) P.O. Box 29086-00625 Nairobi, Kenya.
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James Karanja
  • James Karanja
  • Kenya Agricultural and Livestock Research Organization (KALRO), P. O. Box 57811, Nairobi, 00200, Kenya.
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Caleb O. Obunyali
  • Caleb O. Obunyali
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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Sylvester O. Oikeh
  • Sylvester O. Oikeh
  • African Agricultural Technology Foundation (AATF), P. O. Box 30709-00100, Nairobi, Kenya
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  •  Received: 01 March 2021
  •  Accepted: 24 June 2021
  •  Published: 31 July 2021

Abstract

This paper utilizes the Economic Surplus Model (ESM) to provide an ex-post evaluation of the economic impact of drought tolerant hybrid maize technology in Kenya. Results indicate that the adoption of DroughtTEGO® varieties will generate economic benefit to producers with a net present value of US$ 2.1 billion over a 20-year period. These benefits are sustainable when adoption levels remain above 32% and yield advantage at least 21% over the commercial hybrids. These results present a compelling reason for investing in development, deployment and upscaling of the technology to mitigate the effects of drought among maize producers in Africa.

Key words: Adoption, climate-smart, DroughtTEGO®, drought mitigation, economic impact, economic-surplus model.