Aims: There have been concerted efforts to commercialize the pig sub-sector so as to make it more profitable to farmers, especially smallholder farmers. Despite the development, the profitability in the sector has not been consistent among the smallholder farmers. Smallholder farmers have been earning varying and dismal profits. The causes of the varying profits have not been empirically established with the influence of institutional arrangements from a transaction cost perspective and management factors contributing to this inconsistency not fully established. The study examined the influence of institutional arrangements and management factors on profit efficiency of smallholder pig farming in Tharaka-Nithi County, Kenya. Research Methods: A two-stage sampling technique was employed in selection of 80 smallholder pig farmers. Semi-structured interview guides were administered and data was analyzed using descriptive statistics and stochastic frontier production function. Findings: The study revealed that male (75%) respondents dominated were within the active age, had 6 years pig farming experience with basic education. The results of Stochastic frontier production revealed that feed costs (p<0.01) and breed type (p<0.05) negatively reduced profit efficiency of the respondents while herd size (p<0.05) and veterinary and drug costs (p<0.01) positively influenced profit efficiency. Inefficiency was increased by Gender (p<0.1) and Debt Asset Ratio (p<0.01) while information trust (p<0.05) and experience reduced. Conclusion: The mean profit efficiency was 0.40 exhibiting low profit efficiency in the study area, efficiency level could be increased by 60% through better use of available resources, adoption of modern technology and transaction costs reduction. This would be acquired if good management practices and marketing channels are adopted. The gamma parameter (γ) was 0.63 meaning 63% net revenue variation is due to profit inefficiencies. The study contributes to Agribusiness field and would improve policies associated with agribusiness development in Kenya.
The study examines the socioeconomic factors that influence the adoption of Integrated Pest Management in 152 smallholder tomato farmers in Buuri Sub-County, in Meru County Kenya. A random stratification sampling procedure was used to obtain smallholder tomato farmers and a semi-structured questionnaire was used to collect primary data which was analyzed using a binary logistic regression model. The results showed that the average land size for tomato production in the area was 1 acre, with average yields of 35 tonnes per acre, Kshs 592,000 net returns/ acre for IPM adopters. The study established that gender type (5%), farm size (5%), labor (5%), and access to information (5%), and age of the farmers (5%) were statistically significant. Additionally, gender type resulted in an increase of adoption of IPM by 43%, farm size by 8%, labor by 11%, while access to information by 40%. The study concluded that different stakeholders should ensure a support system to various IPM practices to lower production costs and encourage adopting the techniques.
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