Determinants of Productivity of Small-Scale Holdings of Arabica Coffee and its Supply Response in Kenya: A Case Study of Kiambu County

Machuka, Samson Masese (2016) Determinants of Productivity of Small-Scale Holdings of Arabica Coffee and its Supply Response in Kenya: A Case Study of Kiambu County. ["eprint_fieldopt_thesis_type_phd" not defined] thesis, The Open University of Tanzania.

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Abstract

The main objective of this study was to investigate the determinants of productivity of coffee farms and its supply response in Kiambu County in Kenya. The study sought to assess how the combined use of coffee farm sizes,fertilizers and spray chemicals of the small scale farmers contributed to coffee productivity; how each of the three factors contributed individually to coffee productivity; how the supply response of coffee output varied based on coffee prices and input costs; and the trends in coffee output by the small scale farmers in the County. Data was collected from 125 farmers for the period 2004 to 2014. A pooled regression analysis based on Cobb-Douglas and Nerlove models was conducted. The estimation results of the supply response based on the Nerlove model showed that coffee output in the current period varied significantly with changes in the coffee output in the previous period and its two-year lag. The long run price elasticity was estimated at 0.800. The estimation results also showed that prices of coffee were statistically insignificant in relation to coffee output. The estimation results also indicated that both the farm size and the quantity of triple 17 and CAN fertilizers used were positively and statistically significant in relation to the coffee output. This was, however, not the case for sumithion type of fertilizer. In addition, one acre of coffee farm increased coffee output by 1.418 kilograms. Further, the quantity of copper type of spray used was positively and statistically significant in increasing the coffee output. Based on the study, it is recommended that farmers need to increase the quantity usage of compound fertilizer in the form of triple 17, and those who do not use fertilizers have to be encouraged to use triple 17 fertilizer. It is also recommended that the government ought to subsidize the cost of fertilizers and spray chemicals.

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