Analysis of fish marketing and household welfare among aqua farmers in selected counties in Kenya

Abstract

Capture fisheries and aquafarming are important in meeting the rising demand for white meat. They also contribute to improved income and nutrition among producers and consumers of fish, respectively. With the global fluctuation in capture fisheries, attention has been diverted towards aquafarming which has shown an increasing trend in the recent years. Despite this progress on the production side, there has been little effort made in the past to improve fish marketing to ensure a ready market for producers and easy access for consumers. Social networks play a key role in facilitating marketing through group formation and networking. In addition, lack of an effective marketing system for fish may result in high post-harvest losses with implication on household welfare. This study analyzed fish marketing and household welfare among aquafarmers for selected Counties in Kenya. The specific objectives of the study were (1) to characterize fish market outlets among aquafarmers, (2) to determine the effects of social networks on the choice of market outlets and (3) to assess the influence of post-harvest losses on farmer household welfare. The study used secondary data which was collected in Nyeri, Siaya, Kiambu, Kirinyaga and Kakamega Counties using semi structured questionnaires on a sample of 300 fish farmers. A multi stage sampling technique was used to select the respondents. Descriptive analysis, multivariate probit model and two stage least squares regression model were used to analyze objectives one, two and three respectively. Results indicated that majority of the fish farmers sold directly to consumers and retailers outlets. In addition, farmers who sold to wholesalers and collectors market outlets received better prices. Results of the multivariate probit model established that social networks captured by the number of farmer groups, membership to Farm Africa (non- government organization), number of years in a group and linkages with the fish market significantly affected the choice of market outlets. As expected, the findings from the study showed that post-harvest losses negatively affect farmer household welfare. Given the results, it is important that the government of Kenya in partnership with other stakeholders help to reduce bureaucracies such as scale of production, packaging and handling procedures in wholesaler and collector outlets. In addition, there is need for extension officers to offer training and technical advice to farmers on the importance of group marketing. The findings underscore the importance of training and provision of credit facilities to enhance fish marketing. In addition, reduction of post-harvest losses through investment in preservation facilities would result in better prices and overall improvement in household income.