FACTORS INFLUENCING CONTRACTUAL FARMING IN KENYA: A CASE OF BUURI CONSTITUENCY, MERU COUNTY, KENYA
Fridah Kagwiria - University of Nairobi, Kenya
Prof. Nathan Gichuki - University of Nairobi, Kenya
ABSTRACT
The purpose of this study is to establish the factors influencing contractual farming in Kenya a case of Buuri Constituency, Meru County. The objectives of this study are to examine the influence of food pricing on contractual farming, the influence of production cost on contractual farming, the influence of marketing competition on contractual farming and the influence of farming systems on contractual farming. The research study used a descriptive research design and the target population for this study were farmers, agricultural officers, fresh produce companies, county government officials and national government officials. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of both open ended and closed ended questions Reliability coefficient of the research instrument was assessed using Cronbach’s alpha (α). Descriptive statistics analysis was employed to establish the factors affecting contract farming in Buuri Constituency, Meru County. The quantitative data was coded to enable the responses to be grouped into various categories. The analysed data was interpreted in terms of averages and standard deviation using assistance of computer packages especially SPSS (version 21). This study also conducted a correlation analysis to establish the relationship between the variables in the study. Multiple regression analysis was used to establish the relations between the independent and dependent variables. The study endeavoured to investigate the influence of food pricing, production cost, market competition and product pricing on contractual farming in Buuri Constituency, Meru County and concluded that it positively influences contract farming. The study findings established that production cost influenced contractual farming in Buuri Constituency, Meru County positively and significantly. The study findings also found out that market competition influences contract farming in Buuri Constituency, Meru County positively. Further the study concluded that farming systems positively and significantly influences contract farming in Buuri Constituency, Meru County. Based on research findings and conclusion the study recommends that: the farmers and other people involved in contract farming should focus on the price sensitivity since it influences farmer’s participation in contract farming and the farmers should also focus on the quality of the products produced. The farmers should ensure that the products are of the required standards to make sure that the consumers who are also the buyers are satisfied.
