Abstract:
The poultry sub-sector in Kenya accounts for about fifty five percent of the livestock sector and thirty percent of the agricultural Gross Domestic Product. However, gains from the Indigenous Chicken (IC) enterprises have been challenged by market inefficiencies characterised by high transaction costs and poor accessibility of market information. In response to this, the Kenyan government private sector partnership has in the recent times, been promoting the formation and development of farmer marketing groups to promote the efficiency in marketing of indigenous chicken. The assumption was that when acting collectively, Indigenous Chicken farmers are able to easily access market information, reduce transaction cost and better able to coordinate their marketing activities and ultimately improved incomes. However, Indigenous Chicken markets have remained poor even though the demand for Indigenous Chicken products has tremendously improved. This study used a random sample of 196 farmers in Navakholo and Lurambi divisions in Kakamega County to establish the influence of collective action in marketing of Indigenous chicken. It specifically evaluated the determinants of smallholder farmer‟s participation in Indigenous Chicken Producer Marketing Groups and the intensity of participation in markets, the effect of farmer marketing groups on market channel choice decision and on farm household incomes from the indigenous chicken enterprise. Data was analysed using descriptive statistics, multinomial logit, heckman two stage and regression models. Heckman two stage model results indicated that the decision by smallholder farmers to participate in collective marketing through farmer marketing groups was significantly influenced by a variety of factors including years of formal education of the household head, accesibility of credit, distance to the extension service and average price per bird. The extent of farmers participation was influenced by age of the household head, size of the farm, decision making in groups, off-farm engagement and years of formal education of the household head. Multinomial logit model results indicate that age of the household head, group membership, farm size, credit access, education, cost of information, attributes of the flock, transport cost and distance to the market influenced the choice of different market channels. A regression model result showed that education, off-farm engagement, distance to the livestock market and extension service significantly influenced income from the indigenous chicken enterprise.
