Determinants of intensity of market participation among banana traders in western Kenya

Abstract

Traders both wholesaler and retailers play a significant role in banana markets. In Kenya the banana market is not fully developed. This demands targeted studies to assess their performance. This study aims at examining banana traders' intensity of participation in the markets and constraining factors. A survey was conducted in 2013 in four counties. One hundred and ninety traders were randomly selected using multi-stage sampling technique. Data were collected on personal, market parameters, and institutional factors. Descriptive statistics and Tobit model were utilized in the analysis. The results showed that traders received market information from multiple sources probable to check on the reliability and accuracy. The results of the Tobit regression showed that the age and sex of traders distance to markets, type of banana and information sources significantly influence the volume of banana fruits handled by traders. Therefore based on the study findings, some of the suggested policy recommendations include; the need to foster development of banana infrastructures and also efforts should be geared towards improving market information sources among traders.

Prices, profit margins and intermediary market power: evidence from the matooke value chain in Uganda

“…This is caused by the low volumes being sold by farmers. This is in line with findings by Nalunga et al (2015), Warsanga and Kilimanjaro (2014) and Komarek (2010) who found that in East African matooke value chains, the production node is the "least profitable". However, our data cannot offer a complete picture of profitability.…”

Determinants of Agricultural Commercialization Among Smallholder Rice Farmers in Ekiti-State, Nigeria.

“…However, Heckman selection and double hurdle models have advantage over the Tobit model. The two-step models relax the Tobit model's assumptions that: a given set of independent variables produce the same effect on the probability of participating in agricultural commercialization as well as the intensity of participation (Wooldridge, 2010), Also, Tobit model assumes that non-participation in agricultural commercialization and invariably zero traded volumes are borne out of rational choice of the individual which Komarek (2010) ascribed to probable market entry barrier. Again, Tobit model is weak as its estimation is based on the condition that the dependent variable meets a certain cut-off point, this could interfere with the true estimates of the intercept and the slope.…”