Blessing or Evil? Contract Farming, Smallholder Poultry Production and Household Welfare in Kenya

Priscilla W. Wainaina, Julius J. Okello and Jonathan M. Nzuma

Quarterly Journal of International Agriculture, 2014, vol. 53, issue 4, 22

Abstract: There is lack of consensus in the literature on the impact of contract farming on the welfare of smallholder farmers. Some authors argue that contact farming improves access to markets hence income, while others view contract farming as an avenue by which large corporations exploit smallholder farmers. It is hence seen as a blessing to some but a necessary evil to others. This study examines the factors influencing participation in poultry contract farming in Kenya. It then uses propensity score matching technique to assess the impact of contract poultry production. The study finds, among others, that farmer-specific factors, transaction costs and financial asset endowment affect participation in contract farming. It also finds that contracted farmers earned more net income per bird than their counterparts. It concludes that participation in contract farming practice improves the welfare smallholder poultry farmers in Kenya. The study discusses the policy implications of the findings.

Keywords: Farm Management; International Development; Livestock Production/Industries; Marketing; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://ageconsearch.umn.edu/record/199252/files/2_Okello.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:qjiage:199252

DOI: 10.22004/ag.econ.199252

Access Statistics for this article

More articles in Quarterly Journal of International Agriculture from Humboldt-Universitaat zu Berlin Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().