Socio-economic Factors Influencing Smallholder Banana Farmers’ Participation in Banana Farmers’ Association Marketing Channel in Murang’a South District.

Abstract

This study analyses the socio-economic factors that influence smallholder banana farmers’ participation in a marketing association. The study further evaluates the returns from alternative banana marketing channels to determine the effect of participation on the farmers’ net income. A total of 120 smallholder farmers were interviewed from Maragua division of Murang’a South District. The division was purposively selected due to its high production of bananas, early adoption of tissue culture bananas and existence of banana associations. Tobit model was used to evaluate the socio-economic factors that jointly influence the probability and level of participation in the marketing association. Gross margins of the various marketing channels were also computed to determine the effect of participation on farmers’ net income. The results of the study showed that variables that significantly influenced farmers’ participation in the banana marketing association were age and years of experience in marketing of household head, an irrigation facility on the farm, availability of family labor for farming activities, access to credit for agricultural development, contact with agricultural extension service providers, membership of household head in agri-commodity marketing association, good condition of roads and access to market information. The results further showed that all marketing channels gave positive net income but the marketing association had the highest returns. The study concludes that banana farmers operate in an environment of inadequate business development services that limits their ability to participate in marketing associations. The farmers are constrained by inadequate capital to acquire the required farm inputs and equipment. They have inadequate access to affordable credit, which is an impediment in engaging in marketing functions. There is information asymmetry in banana marketing; only the brokers and not producers have access to comprehensive market information. The farmers also have inadequate access to extension services. Their efforts to market their produce in the far of markets that offer higher price are thwarted by poor roads. The study therefore recommends that the government should formulate policies to facilitate smallholder farmers’ access and participation in acquisition of credit for banana production and marketing. The terms of credit should be improved to make credit facilities affordable; strengthening linkages between farmer groups and micro-finance institutions is hence required. Capacity building of the farmers’ on rainwater harnessing and harvesting is required to enhance farmers’ ability to irrigate their crops. The smallholder farmers should be sensitized on importance of producer marketing associations and be trained on group dynamics, collective marketing, contract development and bargaining and the required negotiation skills to improve their marketing skills. There is need for policies to support provision and access to marketing information to enhance transparency in banana marketing. The Government should put policies in place to strengthen provision of sufficient farm business development services.