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Market Liberalization and Agricultural Intensification in Kenya (1992-2002)

Author

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  • De Groote, Hugo
  • Kimenju, Simon Chege
  • Owuor, George
  • Wanyama, Japheter

Abstract

This study analyses the impact of the liberalization on the intensification of maize production in Kenya. It first analyses the impact of liberalization on input and output prices, followed by an analysis of farmer practices comparing two major farmer surveys, from 1992 and 2002. The results show that liberalization has had a general positive impact on the evolution of prices, with a decrease of input/output price ratios. However, fluctuations of maize prices has become very high and, combined with a decrease of marketing by the marketing board, has increased the uncertainty in maize production. The liberalization has also resulted in a decrease in extension services. Fortunately, farmers have an increased access to credit services. The combined effect of prices and access to services has resulted in little change in the number of farmers using new maize technologies, in particular improved varieties and fertilizer. The dose of fertilizer per ha has, however, decreased. As a result, yields have not increased. The analysis also showed that credit and extension have a major effect on adoption and, indirectly, on yield. The results indicate that an effort is needed to improve extension access. While the improved access to credit is encouraging, more than half the farmers still miss this essential service. Finally, the increased price fluctuation and market uncertainty should be addressed through improved use of price buffer mechanisms. Market access can also substantially be improved through investment in infrastructure.

Suggested Citation

  • De Groote, Hugo & Kimenju, Simon Chege & Owuor, George & Wanyama, Japheter, 2006. "Market Liberalization and Agricultural Intensification in Kenya (1992-2002)," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25419, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25419
    DOI: 10.22004/ag.econ.25419
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    References listed on IDEAS

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    1. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    2. Rosegrant, Mark W. & Paisner, Michael S. & Meijer, Siet & Witcover, Julie, 2001. "2020 Global food outlook," Food policy reports 30, International Food Policy Research Institute (IFPRI).
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    1. Hugo De Groote & Bernard Vanlauwe & Esther Rutto & George D. Odhiambo & Fred Kanampiu & Zeyaur R. Khan, 2010. "Economic analysis of different options in integrated pest and soil fertility management in maize systems of Western Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 471-482, September.
    2. Smale, Melinda & Byerlee, Derek & Jayne, Thom S., 2011. "Maize Revolutions in Sub-Saharan Africa," Working Papers 202592, Egerton University, Tegemeo Institute of Agricultural Policy and Development.

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