Factors Influencing The Supply Of Cotton In Kenya (1960-2017)

Abstract

Demand for cotton still supersedes its production and as such, the textile industry greatly relies on cotton lint imports to meet its yearly demand. Even with the sector’s downturn in the current years, cotton is nonetheless one of the few cash crops that has the ability of expanding food security and employment opportunities through income generation in the Kenyan ASALs. The main objective of the study was to assess the factors influencing the supply of cotton in Kenya with the objective of proposing policy measures to increase production. The study adopted a modified Nerlovian supply response model to estimate both output and hectarage model. Secondary time series data for the period 1960-2017 was used and analyzed using Stata version 15.1. Findings from the study showed that government expenditure on research, price of inputs and hectarage planted to cotton in the present period were the significant factors influencing output of cotton. Hectarage planted to cotton in the previous period was found to be the only significant factor influencing hectarage planted to cotton. The study recommends among other things the strengthening of the linkages between cotton output and research and allocation of adequate funds to research in cotton. Farmers are encouraged to make use of all the available 385,000 hectares that is viable for production. Further, the government should introduce subsidies that lower the cost of inputs which take a huge chunk of production costs. This will encourage cotton producers to increase their production.