An economic analysis of the Kenyan sisal industry

Abstract

Kenya is an important producer of sisal fibre in the world market. The sisal crop not only provides cash income to producers but is also an important source of foreign exchange resulting from exported fibre and fibre produc However, the Kenya sisal industry not only faces stiff competition from other fibres thereby reducing its market share, but also faces constraints that adversely affect production. Some of these constraints led to the contraction of the sisal industry from 1960 to 1985. This study investigated producers' production behaviour. In particular, a sisal production system that consists of factors that motivate acreage, harvesting, I labour, production, sales, and stock of sisal fibre is identified. A model is developed to identify and estimate the effects of these factors. Other issues that affect sisal processing and marketing are also discussed. A'comparison of the two techniques, the "fiel~" and "factory" decorticators is discussed. This is based on production costs, revenues, and opportunity cost)of wasted fibres in the drums per ton of finished fibre to determine the appropriate technology.

Marketing arrangements for sisal fibre, the roles of the Sisal Board and the marketing agents and the international fibre market are evaluated and discussed.