Cotton production in Busia district in the 1970’s : a case study of economics factors limiting production in south Teso locations

Abstract

Busia district is one of the leading cotton producing districts in Kenya. Since independence over 30% of Kenya's total cotton production has come from this district. Cotton production in Busia increased at a record average annual rate of about 12% during the first seven years of Kenya's independence. However, this rate fell to only 6% between 1970/71 and 1977/78. The chief objective of this study was, therefore, to find out the major economic factors that have contributed to the poor performance of the cotton industry in Busia district ill the 1970's. The price elasticity of cotton supply in Busi.a for the period between 1962 - 1977 was estimated and shown to be positive. The major findings of this study may be surnrnarisedas follows: (i) Cotton was found to be a much more labour intensive crop than some of its chief rival crops, sugar cane and maize. The net returns to labour from cotton cultivation were, howeve r, found to be far below the net returns from these other alternative cash crops grown in Busia. (ii) Net returns per acre of cotton ",ere calculated to be much lower than the net returns per acre of sugar cane, maize -- and sirnsim.Cotton was thus found to be the least profitab1 of all the cash crops grown in Busia. (v) (iii) The introduction of sugar cane following the establishment of two sugar factories (Mumias and Nzoia) in Western Province had not resulted in sugar cane replacing cotten as a chief cash crop in South Teso location of Busia district in the 1970's. (iv) Cotton yields were found to be very low in South Teso location. The average yield was calculated to be about 400 Kilograms per hectare in 1978. The chief causes of the low yields were fOlmd to be the considerable delays in paying cotton farmers and the long distances the farmers travelled to sell their cotton. These two factors were found to undermine the economic incentive to increase cotton yields through the use of essential inputs such as fertilisers and insecticides. There are two major policy recommendations that arise from the results of this study; firstly, there is urgent need to raise the cotton producer price so that returns to cotton can reflect the opportunity cost of the resources devoted to its production, secondly, the direct involvement of the Cotton Lint and Seed Marketing Board in the purchase of cotton is very strongly recommended. Th i.swould ensure that cotton growers are paid promptly and that the farmers are served with an adequate number of cotton buying centres. The b Farmers' Co-operative Unions which have hither to / .responsibl.efor the purchase of cotton from the farmers have performed very poorly in carrytITg out this important marketing activity in Busia.