Role of cost of information adoption and utilization in the relationship between cost of sugar cane production and cost of food production among farmers in Nyanza region, Kenya

Abstract

In Kenya, agricultural sector absorbs 60% of the labour force, contributes 24% to GDP and sustains over 80% of the rural populations’ livelihood. In Nyanza region, sugarcane production covers 55.9% of the total arable land yet the financial returns are insufficient to cater for household’s food deficits. Shortfalls are abridged through food importation, government or donor support. Although Kenya has notable agricultural information dissemination channels, agricultural output in Nyanza region is still low. It is unclear whether this is attributed to high costs of adoption or utilization or whether information provided is irrelevant. Most methodologies used in making conclusions on competing needs among production factors between sugarcane and food production pitches on small geographical boundaries and documents only on technical efficiency. Since there is no congruence on the relationship between sugarcane on food production and the role of information adoption and utilization is also controversial, there is need for further investigation. The general objective was to investigate the role of cost of information adoption and utilization (IAU) on the relationship between cost of sugarcane production and cost of food production among farmers in Nyanza region, Kenya. Specific objectives were to; establish the extent of information adoption and utilization among sugarcane and food crop farmers; determine the relationship between cost of sugarcane production and cost of food production ; determine the cost efficiency level on cost of sugarcane production and cost of food production; assess the moderating and mediating effect of cost of information adoption and utilization on the relationship between cost of sugarcane production and cost of food production cost; examine the coping strategies to food insecurity among sugarcane farmers in Nyanza region, Kenya. Cost minimization theory was adapted and modified while correlational research design was adopted. From 73,000 farmers, a multistage random sampling was used on 384 farmers generated through Cochran’s formula. Response rate was 82.55%. Cronbach alpha tested for reliability; experts opinion tested for validity. Multinomial logit, Stochastic Frontier Analysis and Structural Equation Model (SEM) determined the causal effects. Descriptive statistics and coping strategy index (CSI) determined “the extent” and “coping strategies” respectively. From results, information adoption was at a greater extent, utilization was at a small extent; the relationship between Sugarcane production cost and food production costs was significant ; cost efficiency level in the production of sugarcane and food crops is 74.96%; cost of adoption significantly moderated cost of land in sugarcane production ; cost of adoption and utilization moderated cost of capital and land in sugarcane production and . Taking porridge and eating of left overs were the main coping strategies. Therefore, intensification of agricultural extensions services, stabilization of cost of land and capital are required. Mixed production is also recommende