Factors Influencing Contractual Farming In Kenya

Abstract

The purpose of the study was to establish the factors influencing contractual farming in Kenya a case of Buuri Constituency, Meru County. The statement of the problem enumerated on prevalence of food insecurity in the world and the need to change farming systems to address hunger and poverty. The objectives of this study were to examine the influence of food pricing on contractual farming, the influence of production cost on contractual farming, the influence of marketing competition on contractual farming and the influence of farming systems on contractual farming. The research study used a descriptive research design and the target population for this study were farmers, agricultural officers, fresh produce companies, county government officials and national government officials. Primary data were obtained using self-administered questionnaires. The questionnaires were made up of both open ended and closed ended questions Reliability coefficient of the research instrument was assessed using Cronbach’s alpha (α). Descriptive statistics analysis was employed to establish the factors affecting contract farming in Buuri Constituency, Meru County. The quantitative data was coded to enable the responses to be grouped into various categories. The analysed data was interpreted in terms of averages and standard deviation using assistance of computer packages especially SPSS (version 21). This study also conducted a correlation analysis to establish the relationship between the variables in the study. Multiple regression analysis was used to establish the relations between the independent and dependent variables. The study sought to determine the influence of food pricing on contract farming in Buuri Constituency, Meru County. Further the study sought to establish the influence of production cost on contract farming in Buuri Constituency, Meru County. the study sought to examine the influence of market competition on contract farming in Buuri Constituency, Meru County. The study sought to determine the influence of product pricing on contract farming in Buuri Constituency, Meru County and concluded that it positively influences contract farming. Further the study established that production cost influence contract farming in Buuri Constituency, Meru County positively and significantly. The study further concluded that market competition influences contract farming in Buuri Constituency, Meru County positively. Further the study concluded that farming systems positively and significantly influences contract farming in Buuri Constituency, Meru County. Based on research findings and conclusion the study recommends that: the farmers and other people involved in contract farming should focus on the price sensitivity since it influences farmer’s participation in contract farming and the farmers should also focus on the quality of the products produced. The farmers should ensure that the products are of the required standards to make sure that the consumers who are also the buyers are satisfied.