Understanding smallholder farmer attitudes to ...

1 UNDERSTANDINGSMALLHOLDERFARMER ATTITUDESTO COMMERCIALIZATIONThe case of maize in KenyaFOOD AND agriculture ORGANIZATION OF THE UNITED NATIONSRome, 2014 Edited by Andrea Woolverton and David NevenUNDERSTANDINGSMALLHOLDERFARMER ATTITUDESTO COMMERCIALIZATIONThE casE of maizE in KEnyaThe designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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4 PhotosSmallholder farmer prepares maize plot, Kenya: CIMMYTC hildren sit beside metal silos used for maize storage, Kenya: CIMMYT (flipped photo). For more information on these Creative Commons licenses, visit: Agricultural Commodity Exchange (KACE) franchise: viAcknowledgements viiContributors viiiAcronyms ixExecutive summary xCHApTER 1 Introduction

5 Study background and objectives Study motivation Kenya s agricultural policy environment Research methodology Structure of the report 9 References 11 Annex 1. Key informants 14 CHApTER 2 attitudes and decision-making in smallholder commercialization Introduction Approaches to commercialization A commercial farming model Benchmarking of smallholders commercial orientation Analysis of smallholder heterogeneity Discussion and policy implications 29 References 32 Annex 2.

6 Econometric impact analysis 34 CHApTER 3 Does selling to different maize buyers matter? Introduction The background to smallholders marketing ideas Empirical methods and data Analysis results Discussion and policy implications 43 References 48 Annex 3. Multinomial logit model 50 CHApTER 4 Collective marketing by smallholder farmers shifting from projects to partnerships Introduction Literature review Findings from Kenya s maize value chain Summary and conclusions 71 References 73 Annex 4.

7 Regression results 77 CHApTER 5 Rural youth and smallholder commercialization Introduction Background to agriculture and youth policy in Kenya Empirical methods and data perceptions of the current generation of farmers perceptions of rural youth regarding opportunities Discussion and policy implications 92 References 94 Annex 5. Junior farmer Field and Life Schools (JFFLS) 96 CHApTER 6 Summary and policy implications Nature of the study Main findings policy implications 102vFIGURES 1 The study areas 7 2 A commercial farming model 18 3 Most important reasons for selling maize grain, by region (percentages of farmers ) 40 4 primary selling outlets, by commercial outcome/orientation (percentages of farmers ) 41 5 Numbers of quality management practices in which producers engage, by commercial outcome/orientation (percentages of farmers )

8 42 6 Traditional spot marketing versus collective marketing by smallholders 55 7 The public sector s role in supporting collective marketing models 58 8 Framework for a partnership approach to smallholder collective marketing 72 9 Comparative urbanization rates in Africa and the world 81 10 perceived employment opportunities across eastern and western rural youth 85 TABLES 1 Snapshot of producer survey respondents 8 2 Focus group participants 9 3 Household roles and decision-making in maize activities, by gender and geographic area (N = 500) 21 4 production objectives, determinants and preferences, by gender and geographic area (N = 500) 22 5 planning and information gathering ability, by gender and geographic area (N = 500) 23 6 Storage preferences and capabilities, by gender and geographic area (N = 500) 24 7 Awareness of maize quality standards and management, by gender and geographic are (N = 500) 25 8 Smallholders buyer preferences, by gender and geographic area (N = 254)

9 25 9 Regression analysis variables 27 10 Likelihood estimates of commercial outcomes A and B 28 11 Statistics of the variables used in estimations 39 12 Factors affecting the producer s choice of maize grain buyer (multinomial logit regression) 44 13 Characteristics of farmers , by collective marketing group membership status 63 14 Key determinants of successful collective action by smallholder farmers 64 15 Comparison between two collective marketing business models 70 16 Basic demographics of youth focus group participants 83 17 producer survey respondents attitudes regarding opportunities for youth in agriculture (N = 500)

10 84 18 Sample variable cost and return estimates from the Bungoma FFS network for maize and tomatoes planted on acres in 2011 88 19 Rural youth s plans for investing the funds from a hypothetical grant 89 BOXES 1 Selling to a neighbour 45 2 Selling to the local market 45 3 Selling to a distant trader 46 4 Selling to an institutional buyer 46viForewordfood price volatility has had a dramatic impact on the food security of poor households in developing countries. Equally serious has been the impact of long-term trends such as a slowdown of agricultural productivity growth, urbanization and an increasingly sophisticated supply chain.