| dc.description.abstract | Busia district is one of the leading cotton producing
districts in Kenya. Since independence over 30% of Kenya's total
cotton production has come from this district. Cotton production
in Busia increased at a record average annual rate of about 12%
during the first seven years of Kenya's independence. However,
this rate fell to only 6% between 1970/71 and 1977/78.
The chief objective of this study was, therefore, to find
out the major economic factors that have contributed to the poor
performance of the cotton industry in Busia district ill the 1970's.
The price elasticity of cotton supply in Busi.a for the period
between 1962 - 1977 was estimated and shown to be positive.
The major findings of this study may be surnrnarisedas
follows:
(i) Cotton was found to be a much more labour intensive crop
than some of its chief rival crops, sugar cane and maize.
The net returns to labour from cotton cultivation were,
howeve r, found to be far below the net returns from
these other alternative cash crops grown in Busia.
(ii) Net returns per acre of cotton ",ere calculated to be much
lower than the net returns per acre of sugar cane, maize -- and sirnsim.Cotton was thus found to be the least profitab1
of all the cash crops grown in Busia.
(v)
(iii) The introduction of sugar cane following the establishment
of two sugar factories (Mumias and Nzoia) in
Western Province had not resulted in sugar cane
replacing cotten as a chief cash crop in South Teso
location of Busia district in the 1970's.
(iv) Cotton yields were found to be very low in South Teso
location. The average yield was calculated to be about
400 Kilograms per hectare in 1978. The chief causes of
the low yields were fOlmd to be the considerable
delays in paying cotton farmers and the long distances
the farmers travelled to sell their cotton. These two
factors were found to undermine the economic incentive
to increase cotton yields through the use of essential
inputs such as fertilisers and insecticides.
There are two major policy recommendations that arise from
the results of this study; firstly, there is urgent need to raise
the cotton producer price so that returns to cotton can reflect the
opportunity cost of the resources devoted to its production, secondly,
the direct involvement of the Cotton Lint and Seed Marketing Board
in the purchase of cotton is very strongly recommended. Th i.swould
ensure that cotton growers are paid promptly and that the farmers
are served with an adequate number of cotton buying centres. The
b
Farmers' Co-operative Unions which have hither to / .responsibl.efor
the purchase of cotton from the farmers have performed very poorly
in carrytITg out this important marketing activity in Busia. | en |
