Determinants of choice of pineapple marketing channels among smallholder farmers in Bureti Sub- County, Kericho County, Kenya

Abstract

Bureti Sub- County in Kericho County has a large concentration of pineapple farmers. The area produces large quantities of pineapples from time to time. Despite producing high quantity pineapples, smallholder farmers in Bureti Sub- County fetch low farm- gate prices, hence low household income. The general objective of this study was to analyze factors affecting choice of pineapple marketing channels among the smallholder farmers in Bureti Sub-County, Kericho County, Kenya. The study was guided by the transaction cost theory and random utility maximization theory. The target population of the study was the smallholder pineapple farmers in Bureti Sub- County. The study utilized a descriptive cross- sectional research design in data collection. The estimated population of pineapple farmers targeted in the study area was 5,940. Multi-stage, proportionate and simple random sampling techniques were employed in the study to select 179 respondents from the four electoral wards. The selected Wards included Kisiara, Chemosot, Tebesonik and Cheboin. Primary data was collected using semi- structured questionnaires. This was supplemented by secondary data using content analysis from different published sources. Data was analyzed using STATA software. Multinomial Logit Model (MNL) was used in this study to analyze variables such as transaction costs, socio- economic and institutional factors of the smallholder pineapple marketing in Bureti Sub- County, Kericho County, Kenya. The results showed that variables that significantly influenced the choice of marketing included; age, gender, household size, education level, price of output, type of transport, group membership, contractual arrangement, extension access, distance to market, negotiation cost and transport cost. Based on the results, determinants of choice of marketing channels were identified to influence the farmers’ decisions in pineapple marketing. It is necessary for the government to make provision for social and economic facilities that would act as incentives especially to smallholder farmers to improve pineapple marketing. The study recommends that the government and other policy makers should advice farmers on the benefits of contract marketing such as reduced marketing search costs and ready market for their pineapple produce. The County government must also promote extension service delivery through modern technologies such social media platforms and promote formation of pineapple marketing groups in order to improve the bargaining power and negotiation skills of smallholder farmers. The existence of transaction costs such as high transport cost could be due to long distances to the selling point and poor road conditions in the study area hence limiting the participation in a marketing channel. Interventions aimed at reducing transaction costs would be possible through proper prioritization of improvement and development of access roads in pineapple growing areas by the county government. The study also recommends that the government and other policy makers must encourage farmers to participate in competitive and lucrative markets as well as choosing appropriate marketing channels such as group markets with high prices.