Evaluation of effects of value addition in sweet potatoes on farm income and profit margins in Homabay County, Kenya.

Abstract

Homa Bay County has great potential in terms of the existing arable land, availability of water, human resources base, technological options as well as market growth opportunities. A majority of household engage in fishing and agriculture as a source of livelihood with previous studies indicating that an estimate of 60% engage in sweet potato production. Kasipul, Kabondo Kasipul and Ndhiwa sub-counties have a high potential for sweet potato production. However the abundant production has not translated much into better living conditions by improving incomes as the poverty level in the county still exceeds 50%. Sweet potato value addition has the capability of fetching higher prices from the market. This study therefore established the activities of value addition being practiced in the three sub- counties, the prices of end-products, the marginal effects that value addition had on net income from sweet potatoes and the profit margins along the sweet potato value chain. Multi Stage sampling procedure was used to select 200 respondents. Interview schedules and observation method were used in the collection of data. Data was analyzed using STATA and SPSS computer programs. Descriptive statistics, chi-square test of independence, F-test, multiple regression model and profit margin analysis were used in analyzing the objectives. Results showed that majority of the farmers were involved in cleaning, sorting, grading and packing raw tubers as a form of sweet potato value addition. The prices of end-products of value addition were increasing with the level of value addition. The findings also revealed that the acreage under production, levels of value addition, access to training and transportation costs significantly influenced farm income from sweet potatoes. The profit margins were found to be higher for shorter distribution channels along the value chain. From these findings, the policy makers should encourage farmer group formation to enhance training on value addition, prices and market opportunities. In addition, the study recommends formation of more SACCOs through which farmers can acquire better vines for higher levels of value addition at subsidized prices and ready market for their produce.