dc.description.abstract | Major causes of egg price instability in Kenya and the
impact of the instability on egg production and consumption
were investigated. The direct impacts of various
stabilization programmes in terms of stability of egg prices,
production and producer revenue, and the benefits accruing to
producers and consumers and the associated costs to the
government of those programmes were evaluated.
Supply, per capita demand, and egg farm-to-retail price
linkage functions were specified and estimated for the period
1977 to 1988 using ordinary least squares (OLS). The
estimated equations were combined to form a multi-equation
model of the Kenyan egg sector. The multi-equation model was
then used to simulate the effects of four price stabilization
programmes, each of which consisted of implementing a proposed
deficiency payment policy.
Deficiency payment programmes reduced price instability
in the Kenyan egg industry, and led to gains in both producer
and consumer welfare but at a cost to the government and a
dead weight loss to the economy. Programmes based on net
margins rather than price were more effective at reducing
price instability, generated more welfare gains to both
producers and consumers, but at higher government costs. | en |