Influence of Commercialization of Small Scale Vegetable Farming on Poverty Eradication in Saboti Constituency
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ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 5, Issue 2, pp: (11-32), Month: April - June 2018, Available at: www.paperpublications.org INFLUENCE OF COMMERCIALIZATION OF SMALL SCALE VEGETABLE FARMING ON POVERTY ERADICATION IN SABOTI CONSTITUENCY 1Matasi, Kaari, Zipporah, 2Dr. William, Sakataka 1(Msc. Project Management), Jomo Kenyatta University of Agriculture& Technology 2(Lecturer Ph.D), Jomo Kenyatta University of Agriculture & Technology Abstract: Kenya’s smallholder agriculture remains a major engine of rural growth and livelihood improvement, yet it is largely semi-subsistence. A more commercialized production system can transform the subsistence- oriented production system into a market-oriented production system as a way of increasing the smallholder farmer’s income, welfare outcomes and hence reduce rural poverty. This study sought to describe the effects of commercialization of small-scale vegetable farming on poverty levels in rural Kenya. It was carried out in Saboti constituency of Trans Nzoia County. The specific objectives were: To establish the production level of small scale vegetable farmers and the effect this has on poverty levels in Saboti constituency; to find out how the full exploitation of potential available marketing channels for small scale vegetable farmers affects the poverty levels in Saboti constituency; and to explore the effect of asset endowment of small scale vegetable farming on poverty levels in Saboti constituency. This study adopted a descriptive survey research design, which ensures the collection of qualitative and quantitative data. The study covered small-scale farmers in Saboti constituency, using a sample of 316 respondents from a target study population of 1500. Structured questionnaires were the research instruments used in data collection. Multiple regression analysis technique was used to determine the effect of independent variables on the dependent variable, and to measure the relative influence of each independent variable based on its covariance dependent variable. Data was analyzed using statistical package for social science,(SPSS version 16) and thereafter presented in tables. In the research findings, it was established that the production level of vegetables among small-scale farmers was low and therefore did not help in reducing poverty level. From the study, it was observed that most farmers did not exploit available markets and marketing channels for their products, they relied on intermediaries who bought their produce at the farm gate; such a move hindered them from selling their produce at better prices hence benefit socio-economically from it. Low level of production of vegetable did not enhance a saving culture, it hindered small-scale farmers from accumulating wealth from it hence lowering the asset endowment of farmers; thereby, sustaining low standards of living. Keywords: Production level, Market availability, Asset endowment and Poverty level. 1. INTRODUCTION Background of the study: Poverty level refer to an international monetary threshold under which an individual is considered to be living in poverty, which is calculated by taking the value of the goods needed to sustain one adult-and converting it to dollars per day (Govereh et al., 2009). The rural population mainly depends on small-scale agriculture for food and income; this then suggests that smallholder agriculture remains the major engine of rural growth and livelihood improvement for any Page | 11 Paper Publications ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 5, Issue 2, pp: (11-32), Month: April - June 2018, Available at: www.paperpublications.org pathway that can lift large numbers of the rural poor out of poverty (Hazell, 2009). Increasing rural incomes will require some form of transformation out of the semi-subsistence, low-input, low-productivity farming systems that currently characterize much of rural areas or in relative terms by anchoring the poverty line to mean or median income levels (Ravallion and Chen, 2010). Commercialization of agriculture benefits the poor by increasing agricultural labor productivity, which in turn generates employment in low-capital smallholder agricultural production. Both the households that are commercializing their production and hired laborers receive direct income benefits (Jumbam and Betek, 2014). However, the authors also cautions that, while commercialization by itself rarely has adverse consequences on household welfare, commercialization combined with failures of institutions, policies, or markets can be damaging. While there is a general agreement that improving market access and commercialization of smallholders will help induce greater investment, productivity, and income, there remains several challenges in making progress. Some of these challenges include identification of output markets and types of commodities that can enable large numbers of smallholders to improve their incomes; identification of which markets and commodities can provide significant opportunities for the poor; and identification of constraints and interventions that are important for improving access to markets by the poor. It is a complex and dynamic process involving several dimensions related to technology, markets, finance, institutions, infrastructure, and social structure. Table 1.1: Annual Analysis for Income Based on ¼ Acre of Vegetables Category Vegetables Number of harvests Annual production Annual gross Annual per year cost earnings profit African leafy vegetables Amaranth 8 1142 5714 4571 Cowpeas 7 1306 3733 2426 Nightshade 5 1633 4666 3033 Exotic vegetables Kales 4 1440 3200 1760 Spinach 3 1400 2800 1400 Cabbages 3 1440 2400 960 Source: (Mumbi et al 2013) Globally, commercialization of small-scale vegetable farming has been one of the ways of achieving high value agricultural products markets to meet the global priority of every government of meeting the basic food requirements of the rural population. According to Kem (2017), over time, Cambodian smallholders in agriculture have transitioned from small-scale subsistence production of horticultural produce to semi-commercial where land sizes under production of vegetables and cash crops increased because of the increased demand from the international markets. Livelihood status of smallholders have increased for the past one decade, a move that has improved the economy of the country. In Sri-Lanka, Rosairo (2016) reported that most smallholders in agriculture especially of vegetable and horticulture are entrepreneurial in nature. The education background, experience, age, size of farm, location, and gender determine the level of entrepreneurial ability imparted in vegetable farming. Indisputably, most of the smallholders are supported by local governments,which provides extension services, credit, and help smallholders in accessing external markets, a move that improved the socio-economic status of the farmers. Regionally, In Ethiopia, past efforts to improve small-scale vegetable smallholder farmers‟ access to markets through market reforms have largely been ineffective. (Pender and Alemu, 2007).Consequently, majority of smallholder vegetable farmers still produce largely for subsistence needs, producing small marketable surpluses and faces thin markets. Government offers limited extension services, and access to credit is for those endowed socio-economically. Xaba (2013) observes that smallholders in agriculture, who produce for subsistence purpose, are characterized by low activity, minimal labor engagement in farms, and non-competitiveness in terms of marketing and enhancing quality. The farmers face difficulties in transporting their produce to the markets, which often force them to sell at the farm gate. The commercialization of smallholder agriculture is often viewed as an opportunity for economic growth and development for less-developed countries whose economies depend on agriculture largely. The literature on “positive income effects of the commercialization of high-value export crops, in Senegal (Maertens and Swinnen, 2009), Ghana (Afari-Sefa, 2007), and Zimbabwe (Henson et al., 2005)” supports smallholder horticultural commercialization as a means of reducing poverty at the household-level. The Millennium Development Project‟s Hunger Task Force concluded in 2005 “the world could meet the millennium development goal of halving hunger by 2015, and that development of agriculture is critical to that Page | 12 Paper Publications ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 5, Issue 2, pp: (11-32), Month: April - June 2018, Available at: www.paperpublications.org goal (World Bank, 2007). The role of small-scale vegetable farming in poverty reduction and economic growth is very significant in light of the current realities that 1.5 billion farm households live in rural areas of the developing world (World Bank, 2007). The rural population mainly depends on small-scale agriculture for food and income. This suggests that small-scale vegetable farming remains the major engine of rural growth and livelihood improvement through increasing rural incomes. Locally, In Kenya, according to HCDA 2014 annual report horticulture production (especially vegetables) is an important source of income for smallholder farmers smallholders‟ and accounts for more than 70% of the total horticultural output. This is because horticulture