Proceedings

PR – Analysis Of Bean Marketing Channels In Kenya And Tanzania

The common bean is a major staple food crop in Eastern and Southern Africa, providing dietary protein and calories. This study identified lack of adequate information on the marketing channels of the bean marketing systems in Kenya and Tanzania. The objective of this study, therefore, was to define the bean marketing channels across the borders of Northern Tanzania and Southern Kenya. The study hypothesized that the average bean price in terminal markets is approximately equal to estimated marketing costs. Purposive sampling was used to select two out of five districts of Kilimanjaro province and four out of ten districts of Arusha province. However, systematic random sampling procedures were used to select bean farmers and traders. Structured questionnaires were used to collect primary data from 64 farmers, 78 retailers and 51 bean wholesalers. The gross marketing margins and marketing costs analyses were used to evaluate the beans marketing system. The results show that the dominant marketing channel was from the farmer to upcountry assemblers to wholesalers/long distance wholesalers to wholesaler/retailer to retailer and finally to the consumer. Majority of the farmers (92.1%) produce dry beans for local markets, while 7.9% produce for the export market. A large proportion of the farmers (81.4%) sold their dry beans to upcountry assemblers and farm gate markets. In Arusha market, there was no significant difference between the average marketing cost and the average market price. This indicated that the average market prices approximated the marketing costs. The analysis of the marketing margins showed that the farmers’ share (producer participation) in the price paid by the consumer is 45.65%, while those of the Nairobi long-distance wholesaler and Nairobi wholesaler were 14.88% and 9.65% respectively. These indicate that margins varied with the nature of marketing costs incurred by the various participants. The study concludes that producer participation should be increased by reduction of marketing costs through the removal of Horticultural Crops Development Authority (HCDA) levy and 3.5% import duty by the Kenya government

Key words: Bean marketing, marketing channels, costs and margins.

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Author(s): Kipsat, M.J., Korir, M.K., Maritim, H.K., Nyangweso, P., Serem, A.K.

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Organizations(s): Dept. of Economics and Agricultural Resource Management, School of Business and Economics, - Moi University, Eldoret