Analysis of bean marketing system in urban areas of Kenya

Abstract

The beans industry in Kenya is faced with several problems, most especially shortage, seasonal fluctuations in supply of beans and lack of reliable statistical information. This study was conducted to determine the structure and performance of the beans marketing system in Nairobi metropolitan area in Kenya. Primary and secondary data were used. Primary data were generated from a survey of 102 beans traders using cluster and systematic sampling methods. Majority of the traders were women (60.8 %). ‘Rosecoco GLP 2’ (Nyayo) wariety was the most prefered variety. Other varieties on sale were red haricot, Canadian wonder and mwitemania among others. Bean marketing structure approached that of pure competition but lack of capital was a barrier to entry into the wholesale/retail trade. There were no cohesive tactics against established rivals or potential entrants. Stiff competition has resulted in marketing margins that closely approximate the actual marketing costs. The Augmented Dickey-Fuller test (ADFs) showed no significant co-integration for several pairs of markets. Thus market integration had not been fully realized in Nairobi bean markets. This is due to inadequate flow of market information and risk.