dc.contributor.author | Odhiambo, O | |
dc.date.accessioned | 2013-05-15T07:37:58Z | |
dc.date.available | 2013-05-15T07:37:58Z | |
dc.date.issued | 1993 | |
dc.identifier.citation | Odhiambo, O(1993). Smallholder coffee supply response in Kenya | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/22923 | |
dc.description | Msc Thesis | en |
dc.description.abstract | Coffee is an important commodity in terms of its value in the world market and is a
major source of foreign exchange earnings for the producer countries. Since the late
1980s the worldwide coffee industry has been plagued with the problem of low producer
prices which strongly mitigates against the production and marketing of good quality
coffee. In Kenya, c~rmers face the additional problem of high production costs.
A combination of these factors presses heavily on the farmers' profit margins.
This study analyses the responsiveness of coffee farmers in Kenya to changes in coffee
prices. A combination of the Fisher Lag Scheme and the Inverted- V Distributed lag
model is used to derive price elasticities of supply for coffee in terms of productivity and
quality of coffee for five districts in Kenya. The major determinant of productivity and
quality of coffee is found to be the farmers' price expectations. There are other non economic variables which affect farmers' decisions as far as productivity and quality of
coffee are concerned. These are: amount of rainfall, annual number of wet/dry days,
diseases and time trend. Productivity response estimates are found to be generally higher
than quality response estimates. The short run elasticities of productivity response range
from 0.299 to 2.14544, while the long run elasticities of productivity response range
from 0.53828 to 3.56179. On the other hand elasticities of quality response range from
0.04 to 0.75.
The study recommends that the relevant authorities should highly restrict further
expansion of area under coffee while at the same time concentrating on ways and means
of improving the quality of Kenyan coffee to enable the country to earn a premium
price. Kenya should lobby for a larger quota allocation given the recent trends in coffee
production. The Coffee Board of Kenya should also come up with a procedure of
classifying each farmer's coffee and then _issufiigpayment based on the quality of coffee
instead of the present system of paying "average" 'prices to smallholder cooperative
societies. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.subject | Smallholder coffee supply | en |
dc.subject | Kenya | en |
dc.title | Smallholder coffee supply response in Kenya | en |
dc.type | Thesis | en |
local.publisher | Department of Agricultural Economics, University of Nairobi, Kenya | en |