An Analysis of Rice Marketing in Kenya: a Case Study of Kano Plains
Abstract
Most of the cereals including Rice are
marketed through the National Cereals and Produce
Board (NCPB). The existence of a parallel market
for rice has resulted into excessively high margins
to traders with a likelihood of exploiting farmers
who sell in these markets. This case study aimed at
investigating the constraints to supply of rice from
a marketing point 01 view. The approach taken to
study the supply was by considering the response of
marketed output of paddy. Paddy can be withheld at
farm level as a process of choice or due to lack of
marketing. outlet. The timing of sales by the producers
was also considered. These phenomena have implications
on short run shortages and losses to the farmers. The
producer price uncertainty to the farmer gives a certain
probability of farmers exploitation. Withholding of
supplies therefore involves benefits and costs to
different economic units.
The study utilized statistical and econometric
tools to investigate some hypotheses. This study found
out that farmers adopted different marketing strategies.
Traders likewise adopted a certain pattern of trade.
Existence of withholding of supplies at farm level
was noted especially for farmers far removed from
the markets indicating that both choice behaviour
and marketing problems are contraints to the market
supply. The significant factor explaining the
variation in marketed output across farm households
was the total farm production of paddy. Family size
was found not having positive correlation with
quantities withheld. Producer price variation across
farms and from the government's gazzeted floor price
gave evidence that farmers were being exploited at
varying degrees. Trading margins were high in the
first marketing stage.
These findings were used to draw policies in two
areas. Policies that increase quantity of paddy
supplied and those which improves the marketing efficiency
were suggested.
Citation
Master of ArtsSponsorhip
University of NairobiPublisher
University of Nairobi Faculty of Arts, University of Nairobi