Effect of agro-dealers on profitability of improved indigenous chicken production among small holder farmers in Kisumu County, Kenya

Abstract

Improved indigenous chicken production has remained low in Kisumu County, failing to bridge the supply gap of 3.9 million against a demand of 9.1 million chicken. Several efforts have been initiated by the Kisumu County government and different development partners to increase improved indigenous chicken production which have not resulted in any marked change. This implies that investments aimed at improving chicken production have not achieved desired outputs. This could be partly attributed to the weak linkages between agro-dealers and farmers. Further, there is scanty information on the effect of agro-dealers in sustaining the improved indigenous chicken input supply system and commercialization. This study sought to evaluate improved indigenous chicken farmers’ perception about services obtained from agro-dealers, determine the profit level of improved indigenous chicken farmers in Kisumu County, and determine the effect of agro-dealers on profitability of improved indigenous chicken production among small holder farmers in Kisumu County. The study was guided by the innovation theory and Clark’s dynamic theory of profit. The target population included 52,704 farmers practicing improved indigenous chicken farming on small scale in Kisumu West, Kisumu East and Kisumu Central Sub Counties. The study employed descriptive cross-sectional survey and causal-effect research design, using semi-structured questionnaires to obtain data from 384 farmers, selected using multi-stage sampling technique. A pilot study was done in Vihiga County with 40 farmers. The Cronbach’s alpha method was used to compute reliability of the research instrument which resulted in a value of 0.79. The validity of the instrument was done through face and content validity through extensive literature review. Descriptive statistics was used to characterize the improved indigenous chicken farmers, the principal component analysis and Likert scale mean score were used to evaluate improved indigenous chicken farmers’ perceptions about services obtained from agro-dealers, gross margin per bird analysis was used to determine the profitability level of improved indigenous chicken farming, and the propensity score matching was used to determine the effect of agro-dealers on profitability of improved indigenous chicken production. Results revealed that mean age of the household heads was 45 years, majority of which are male headed, with an average flock size of 57 heads. Analysis of farmer perception on agro- dealers showed that an average response score of 3.51, indicated that agro- dealers contributed positively to their enterprises and thus enhanced their competitiveness. The results further revealed that an average improved indigenous chicken farmer made an annual gross margin of KES 265 per bird. Majority of the farmers, 77%, received agro-dealer extension services. Improved indigenous chicken farmers who accessed extension services fetched higher profits by 6% annually compared to those who did not. The study recommends government and development organizations to strengthen the capacities of agrodealers, and thus improve the provision of extension services through them, to enable small holder farmers improve their profitability.