Market Liberalization and Agricultural Intensification in Kenya (1992-2002)

Type Conference Paper - 26th Conference of the International Association of Agricultural Economics
Title Market Liberalization and Agricultural Intensification in Kenya (1992-2002)
Author(s)
Publication (Day/Month/Year) 2006
URL https://www.researchgate.net/profile/Hugo_De_Groote/publication/23511496_Market_Liberalization_and_A​gricultural_Intensification_in_Kenya_(1992-2002)/links/0046351b6d81ebd634000000.pdf
Abstract
This study analyses the impact of the liberalization on the intensification of maize production in
Kenya. It first analyses the impact of liberalization on input and output prices, followed by an
analysis of farmer practices comparing two major farmer surveys, from 1992 and 2002. The
results show that liberalization has had a general positive impact on the evolution of prices, with
a decrease of input/output price ratios. However, fluctuations of maize prices has become very
high and, combined with a decrease of marketing by the marketing board, has increased the
uncertainty in maize production. The liberalization has also resulted in a decrease in extension
services. Fortunately, farmers have an increased access to credit services.
The combined effect of prices and access to services has resulted in little change in the
number of farmers using new maize technologies, in particular improved varieties and fertilizer.
The dose of fertilizer per ha has, however, decreased. As a result, yields have not increased. The
analysis also showed that credit and extension have a major effect on adoption and, indirectly,
on yield.
The results indicate that an effort is needed to improve extension access. While the
improved access to credit is encouraging, more than half the farmers still miss this essential
service. Finally, the increased price fluctuation and market uncertainty should be addressed
through improved use of price buffer mechanisms. Market access can also substantially be
improved through investment in infrastructure.

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