An Economic Assessment Of Structure, Conduct, And Performance Of Rabbit Market In Nakuru, Kiambu And Nyeri Counties, Kenya

Abstract

ABSTRACT Rabbit (Oryctolagus cuniculus) is a preferred and sustainable source of proteins in the face of climate change, increase in population and changing meat consumption patterns in developing countries. This is because of its unique characteristics such as fast growth rate, high fecundity, feed conversion efficiency, early maturity, freedom from odour, noiselessness and its adaptability to a wide range of ecosystems. Rabbit meat is preferred because of its nutritional characteristics, for example low fat, calorie and cholesterol contents. Despite the high potential of rabbit enterprise in Kenya, the sector has not been fully exploited. Additionally, no study has been done to map out Kenya’s rabbit value chain including the analysis of its market structure, conduct, and performance and the factors affecting profitability of rabbit farming. The current study aimed at bridging the afore-mentioned research gaps. The study was conducted in three counties namely, Kiambu, Nakuru, and Nyeri. A sample of 459 farmers and 80 traders from the three counties was interviewed. Focus group discussions (FGD) and Key Informant Interviews (KII) were conducted. The market Structure, Conduct and Performance (SCP) model was used to analyze marketing of rabbit in the three counties. A Two Stage Linear Square (2SLS) models was used to determine the factors influencing rabbit profitability. The study found that 88 percent of farmers practiced rabbit farming for commercial purposes. Value chain analysis revealed that rabbit skin was thrown away after slaughtering process in all the three counties. In Nakuru, the Gini-coefficients (GC) for producers and traders were 0.689 and 0.517 respectively. In Kiambu, the GC for producers and traders were 0.658 and 0.59 respectively. Lastly, the GC for producers and traders from Nyeri were 0.614 and 0.677 respectively. Market actors’ behavior was characterized by bargaining, which was the main way of setting prices. About one third of farmers used mobile phones to connect with buyers. The rabbit farmers received unfair share of retail price with Nakuru having 43.46 percent, vi Kiambu 50.70 percent and Nyeri 40.84 percent. In all the three counties, rabbit farming was profitable as depicted by positive marketing margins. Age of the household head, household size, years of education, number of rabbits kept, group membership, extension access, credit access, wealth index and income were the main factors influencing gross margins in the three study areas. Based on the findings, it is suggested that more effort and resources should be directed towards reducing information asymmetry among the rabbit value chain actors. This can be accomplished through the formation of farmer groups/associations for collective action during marketing. There is need for stakeholders such as both national and county governments, NGOs and farmers to invest in rabbit leather industry so as to realize high income. In addition, promotion of income diversification initiatives among rural farmers is necessary for improving their well-being and employment creation. This will enable smallholder farmers to earn high income which can be ploughed in other enterprises such as rabbit farming. Credit lending institutions such as commercial banks and micro-finance institutions should work towards providing affordable and accessible credit to rabbit farmers in order to improve their ability to cover costs associated with production and marketing of rabbits. Ensuring that interest rates are lowered to a level affordable by smallholder farmers and simplifying application and disbursement procedures of loans should be made a priority