Determinants of smallholders’ choice of avocado marketing outlets and profitability in Murang’a County, Kenya

Karing’u kelvin Njuguna (), Hezron Nyarindo Isaboke () and Samuel Njiri Ndirangu ()
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Karing’u kelvin Njuguna: University of Embu
Hezron Nyarindo Isaboke: University of Embu
Samuel Njiri Ndirangu: University of Embu

SN Business & Economics, 2022, vol. 2, issue 8, 1-25

Abstract: Abstract This paper investigated the determinants smallholders’ choice of avocado marketing outlets and profitability in Murang’a County. Stratified sampling procedure was used to obtain a sample of 384 smallholder avocado farmers from the 7 key producing areas of the County. Multinomial logit regression model was used for analysis, with marketing through farmer organizations being the reference marketing channel. Gross margin analysis was also used to estimate the profitability across the avocado marketing outlets. Results of Multinomial regression analysis showed that the probability of choosing brokers was significantly affected by time taken to collect avocado, access to extension services, farm income and intercropping avocado with coffee. Likewise, probability of farmers’ decision on direct sales to market was influenced by dairy cattle kept by the farmer, intercropping avocado with coffee, growing organic avocado, traveling costs to buyer locations, farmer organization membership fees and subscriptions. Gross margin analysis across the marketing outlets revealed that farmer marketing organization was the most profitable outlet. Therefore, policy makers need to aid interventions that can promote choice of marketing organizations for avocado fruits.

Keywords: Smallholders; Avocado marketing outlets; Multinomial logit model; Stratified sampling (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00261-y

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