A comparative study of land and Labour productivity in small scale and large scale Coffee farms with particular reference to Kiambu District

Abstract

This study estimates the marginal value products for both land and labour in estates and smallholder Coffee farms. It is shown that land productivity is substantially higher in estates than in smallholder farms. The mean MVP for land in estates stands at Kshs. 25,246.00 compared to a mean of Kshs. 4677.70 in smallholder farms. Similarly, labour productivity is also shown to be higher in estates as compared to the smallholder farms. The mean MVPs fo~ labour ranges from Ksbs 78.80 to Kshs 94.35 per manday in estates compared to mean of Kshs 16.00 to Kshs 23.10 per manday in smallholder sector. This led to the conclusion that resources are more efficiently used in estates than in smallholder coffee farms. Regression results from smallholder sector indicates that coffee production would be increased considerably if more fertilizers and fungicides are used. This led to the conclusion that intensive use of these inputs would increase productivity of the various factors from this sector.The study observes that the estates have almost attained their peak in terms of production, and-in prescribing where improvements are needed, the study concludes that these are urgently needed mainly in the smallholder sector. To improve the lot of the smallholder farmers, the study suggests that:- (1) Lower input levels which are both economical and attainable by smallholder farms should be defined. (II) Farmer tr ining should be intensified to make them more aware of the benefits of using recommended inputs. (III) Renumerations to labour should be reviewed, with an aim of increasing them, or more labour should be employed. (IV) Land prices should be standQrdised to reflect productivity if land has to be used more efficiently.