DETERMINANTS OF VERTICAL COORDINATION OPTION CHOICES AMONG SMALLHOLDER FRENCH BEANS PRODUCERS IN KENYA

Review of Agricultural and Applied Economics, RAAE, VOL.24, No. 2/2021

ARTICLE TYPE: REGULAR ARTICLE
MANUSCRIPT RECEIVED: 02.07.2021
MANUSCRIPT REVISED: 09.08.2021
MANUSCRIPT ACCEPTED: 25.08.2021
RECORD ONLINE: 26.08.2021
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KEYWORDS:
vertical coordination; smallholder producers; multivariate probit model; french beans
DOI NUMBER:
10.15414/raae.2021.24.02.78-89
ABSTRACT:
Research background: With market liberalization and the introduction of the new Global GAP measures, several vertical coordination options have emerged, presenting smallholder farmers with multiple market outlets. The choice of any vertical coordination option (VCO) is likely to be entwined by farm, farmer and vertical coordination attributes, yet the selection of an appropriate market outlet for delivering farm produce is not clear-cut.
Purpose of the article: This study determines factors influencing the choice of vertical coordination options among smallholder French beans producers in Murang’a South Sub-County
Methods: Using data from a sample of 215 smallholder producers, the study employed a multivariate probit model (MVP) to explain the determinants of vertical coordination option choices among French beans farmers in four wards located in Murang’a South Sub-County.
Findings & Value added: The results indicate that the choice of vertical coordination option was significantly influenced by gender, household size, education stock, group membership, extension service, training access, farming experience, off-farm income, credit access, distance and market reliability. This implies that the promotion of collective action as an institutional tool for linking farmers to high-value markets, matters. These networks will aid in sharing knowledge, increasing borrowing power and thus, producers can improve French bean quality as required by the market. Additionally, financial institutions stakeholders should develop policies that favour the acquisition of credit at affordable rates. Further, the government with other relevant stakeholders should conduct more training on global gap standards.
JEL CODES:
C01; D81; Q13
PAGES:
78 - 89
Please Cite this Article as:

Naomi Chebiwot CHELANGA, Isaac Maina KARIUKI, Gideon Aiko OBARE (2021) Determinants Of Vertical Coordination Option Choices Among Smallholder French Beans Producers In Kenya. Review of Agricultural and Applied Economics. XXIV (Number 2, 2021): 78-89. doi: 10.15414/raae.2021.24.02.78-89
URL for sharing:

https://roaae.org/1336-9261/doi/abs/10.15414/raae.2021.24.02.78-89

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Review of Agricultural and Applied Economics | ISSN 1336-9261
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia.
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