Economic analysis of factors affecting tea production in the smallholder sector in Kericho, district
Abstract
The existing yield disparities between the smallholder and the estate sectors led to the
formulation of this study. The study started off with the main objective of investigating the
factors causing low yields in the smallholder sector using Kericho District as an example. Two
specific objectives guided the study. These were (a) To assess the factors causing low yields
and establish guidelines for increasing tea yields in the smallholder sector in Kericho district
and (b) To investigate whether producers' prices have influenced the farmers' motivations in
realizing tea yields.
The data for the study was generated both from primary and secondary sources.
A cluster sampling was carried out in the district. Three clusters were randomly picked
and a purposive survey of thirty three farmers was done: based on the availability of time series
data.
A multiple regressional analysis, graphical and tabulations of the results were used in - \ - -------
interpreting the data. The major socio-cultural and structural variables examined in the study
included farm size and area under tea, age, education and occupation, labour availability,
cultural practices and extension services and infrastructure variables.
It was found out that the relative size of the farm and area under tea affects tea yields
depending on the labour availability and the financial status of the family.
The age range, education and occupation status all interact to affect tea yields since tea
as a cash crop is attributed with regular monthly incomes and have higher incomes per unit area
compared to competing enterprises in Kericho District.
There was lack of statistical significance between tea yields and the weather variable, the
time trend variable, and the plucking cost variable except for the tea price variable.
There was also lack of statistical significance between the tea yields and the fertilizer
costs, manhours employed and the distance to the buying centres. However, it was found out
by tabulation that the further away the buying centre from the farm was, the lower the tea output delivered to the buying centre.
Procurement practices of the K.T.D.A. and tea quality issues, the annual processing
factories capacity and number of leaf lorries were also investigated. The processing factories
capacity and number of leaf lorries in the district were inadequate in handling all the tea leaf
from the smallholder sector. The study recommended the expansion of the annual processing
factories capacity , increasing the number of the buying centres, proper supply of gunny bags in
the buying, centres, encourage tea farmers to form a cooperative union to solve the problems of
transport and purchasing of inputs and introduction of motorized plucking machines. The roads
network in the District should be murrammed or tarmacked to increase the efficiency of leaf
transport.
The study found out the tea producing zones (factory regions) with low tea quality
receives lower tea prices and also realises lower tea yields compared to others. It was
recommended that the improvement of K. T.D.A. infrastructure should be enhanced so that better
tea quality are realised in these regions with a hope of attaining a more or less uniform tea prices
for tea growers.
Citation
Master of Science in Agricultural EconomicsPublisher
Department of Agricultural Economics