An economic assessment of tissue culture banana production technology; a case of central Kisii district

Abstract

Agriculture technology is known to be a catalyst for agricultural development and rural poverty reduction through increases in food production and/or reduction in production costs. Inception of tissue culture banana technology was thus perceived as having the potential to reduce the vulnerability of households to production losses from banana pests and diseases. In turn, this would lead to higher or more consistent incomes at farm household levels. The study was set to investigate the impact of tissue culture banana technology on the incomes of the farmers in Central Kisii District. The objectives of the study were; to determine the profitability of investment in tissue culture compared to conventional banana production at farm household level, and to analyze socio- economic and management factors that influence the yields of tissue culture banana technology in the study area. Two hypotheses were postulated that; (a) farmers income from using tissue culture technology does not significantly differ from that achieved from using conventional banana technology and (b) Socio –economic and management factors do not significantly influence the yields of tissue culture banana technology. The study was carried out in Mosocho and Marani Divisions of Central Kisii District. Both primary and secondary data were used. Primary data was collected from 200 small scale farmers engaged in tissue culture and conventional banana production. The study sample was chosen using cluster, purposive and simple random sampling techniques. Secondary data comprised of published data from district survey reports, district development plans, district and divisional reports on tissue cultured and conventional banana production, sessional papers, books, journals and articles. Three methods of analysis were employed these were: Descriptive Statistics Analysis, Benefit Cost Analysis using Net Present Value, Benefit Cost Ratio, Internal Rate of Return and Cobb-Douglas production function model. OLS estimation of the production model was done using statistical package for social sciences (SPSS) version 13.0. The R2 and adjusted R2 were obtained to explain the variation in the dependent variable. This was followed by testing of significance of the identified variables investigated at p 0.05 significance level. The findings showed that the socio-economic and management factors analyzed had significant impact on the total output produced. It was established that farming experience (t= 6.642) and quantity of fertilizer applied (t=5.055) were the most significant and potent contributors followed by manure application. NPV of tissue culture banana and conventional banana technologies were Ksh. 64,383.56 and Ksh.64,884.42 respectively revealing that conventional banana technology was slightly more viable than the tc technology. BCR and an IRR of 1.866 and 16.031% for tc technology and 2.569, 20.95% for conventional technology indicated that costs incurred in the production process of bananas were recovered and profits made but there were more profits in conventional technology. tc had statistically significant lower average net income compared to conventional bananas. It was recommended that, technology promoting institutions need to intensify and facilitate flow of information and exchange of research findings on banana yields and the recommended management practices for increased productivity. Collaboration between farmers and credit providers should be enhanced to improve tc banana management. On farm preparation of farm yard manure and compost should be encouraged amongst the farmers. Farmers need to be enlightened on proper farm records through field days, exhibitions and workshops at local levels.