Effect of Digital Agricultural Marketing Platforms on Extent of Commercialization and Food Security Among Potato Farmers in Nakuru County, Kenya

Abstract

Agricultural commercialization in Sub-Saharan Africa has been identified as a potential solution for reducing food insecurity among farmers by increasing their income. The advancement of commercialization through digitalization, particularly through the development of digital marketing platforms, offers opportunities by facilitating market access and linkages. In Kenya, the agricultural sector has seen a proliferation of these marketing platforms in recent years. However, there remains a noticeable reluctance among farmers to utilize these platforms, and there is limited information on the effect of digital agricultural marketing platforms (DAMPs), especially from the perspective of quantities sold via the platforms, on household food security. Moreover, extension service providers play a major role in the uptake of the DAMPs. However, a lack of awareness among these providers about the current and available platforms contributes to their poor uptake. The first objective of this study is to highlight the awareness of digital marketing platforms among the extension service providers and their relevance in the uptake of digital marketing platforms. It then identifies the factors influencing access to and utilization of agricultural marketing platforms, with a specific focus on M-shamba, a local DAMP in Kenya. Additionally, the study evaluated the extent of commercialization via M-shamba and its effects on food security. The study was conducted in Nakuru County, one of Kenya's leading counties in potato production and digital agriculture advancement. Both quantitative and qualitative data were collected in 2022. Qualitative data were collected from in-depth interviews with agricultural officers and potato cooperative officials, while the quantitative data were gathered using a cross-sectional survey of 375 potato farmers, of whom 23 percent were M-shamba users and 77 percent were non-users. A deductive analysis using the framework approach was employed to understand the penetration of digital marketing platforms among extension officers. The Heckprobit model was used to identify the factors influencing access to and utilization of M-shamba, while the probit and Tobit models, through the conditional mixed process, helped to evaluate the drivers of commercialization in potato farming via M-shamba. The Generalized Propensity Score (GPS) model assessed the effect of commercialization via DAMPs on food security among potato farmers using M-shamba. The results showed that extension service providers were generally unaware of existing digital marketing platforms, but platforms that involved them in their rollout achieved greater success. xvi The findings revealed that age, off-farm income, farm income, years of experience in potato farming, and access to extension services significantly increased the likelihood of accessing M-shamba. Utilization was further influenced by age, gender of the marketing decision-maker, household size, farm income, ranking of potato farming as the primary enterprise, and years of experience in potato farming. The extent of commercialization through M-shamba was significantly determined by total livestock units, marketing decision-maker, having potato farming as the primary enterprise, farm income, access to credit, membership in agricultural groups, and age of the household head. The dose-response function from the GPS model indicated that lower levels of commercialization initially increased food insecurity, but higher commercialization levels led to reduced food insecurity. The study recommends that development partners and policy makers, including the government, NGOs, and private investors, create digital marketing platforms that cater to older farmers and invest in extension services to disseminate and train farmers on using digital platforms, thereby promoting ICT literacy. Furthermore, encouraging farmers in groups to participate in collective marketing via digital platforms is essential, as these platforms offer better prices and can lead to higher incomes. Digital platform developers should incorporate aspects of traditional markets to attract farmers with extensive farming experience. The government and relevant stakeholders, such as NGOs and private investors, should implement income support programs and working business models, including subsidies, grants, and incentives, aimed at increasing farm incomes. Policymakers should also implement policies that support sustainable agricultural commercialization via digital platforms to ensure that increased income translates to improved household food security. If implemented, these policies will support the broader development agenda such as SDGs and BETA.