An economic analysis of some aspects of production and marketing of cashewnuts in Kenya
Abstract
The study is an economic analysis of some
aspects of production and marketing of cashewnuts
ln Kenya. The study was conducted mainly in Kilifi
District. A random sample of 50 growers and some key official
at the Kilifi District Cooperative Union/ National Cereals
and Produce Board and Kenya Cashewnuts Ltd. factory
were interviewed between December 1981 and February
1982. The major hypotheses tested are:
(i) Cashewnut producers are responsive to
cashewnut price changes.
(ii) Producer prices of cashewnuts are directly
influenced by prices of cashewnuts obtainable
from the international market.
(iii) The margin between the producer price and the
consumer price is not significantly different
from estimated total marketing costs.
An examination of the farmers• reaction to cashewnut
price changes reveals a positive reqction to cashewnut
price increase. If cashewnut prices were-to be reduced,
farmers would give less attention to the cashewnut
trees leading to reduced supply of the cashewnuts.
The study also reveals that farmers are faced with
organizational, technological and socio-economic
problems, which jointly affect production levels.
Price of cashewnuts obtainable from the international
market are found to have adi'rectimpact on
producer prices in Kenya. Whether cashewnut
marketing system was efficient or not was examined
by an analysis of' marketing margins in relation
to estimated marketing costs. The analysis suggests
that the marketing system is inefficient.
The study con c 1,udes by recommending structura1
reorganization in order to step up cashewnut
supply. More formal links should be set up between
the Kenya Cashewnut Ltd. factory and the farmers.
The factory should provide inputs or services to
enable farmers to improve their yields, which would
facilitate the supply of sufficient amounts of
cashewnuts for processing.
Publisher
Faculty of Agriculture, University of Nairobi
Subject
CashewnutsDescription
MSc