| dc.description.abstract | Sweet potato (Ipomea halalas L) is a high yielding crop with higher food value than many
staple food crops. Its production in Kenya is mainly concentrated in Rachuonyo South
district. To minimize market inefficiencies depicted by volatile food crop prices and to
promote growth of the agricultural sector by the year 2030, Kenya government formulated
myriad food and agricultural policies. However, implementation of the policies in the sweet
potato sub sector has faced challenges due to insufficient information on the marketing
system of sweet potatoes. The purpose of this study was therefore, to analyze market
structural characteristics, conduct and performance of the sweet potato industry in
Rachuonyo South district. Specifically, the study sought to: Identify and examine
determinants of demand for sweet potatoes in Rachuonyo south district, establish profit
models at various distribution channels of sweet potatoes in the region, examine the type of
market power exercised by sellers of sweet potatoes in the region, determine relationship
between sweet potatoes market structural characteristics and profitability of the market for
sweet potatoes in the region, establish existing relationship between competition among the
sellers of sweet potatoes and profitability of the market for sweet potatoes in the region. The
study was based on SCP paradigm and it adopted both exploratory and correlational research
designs. Population of the study included 166 farmers, 55 wholesalers and an infinite number
of retailers. A sample size of 116 farmers and 384 retailers was determined. Individual
farmers were selected using simple random sampling technique while a purposive sample of
384 retailers and a census of 50 wholesalers were taken after excluding 5 wholesalers
involved in questionnaires pretesting. Primary data were collected using questionnaires while
relevant secondary data were from documented literature. OLS technique was used to
estimate profit and demand models. Market power was determined using Lerner indices. The
study revealed that demand for sweet potatoes was determined by several factors which
differed in their magnitude of effects. These include; incomes of dominating buyers fJ=
0.504,p < 0.01 at the farm level andfJ= ·0.309,p < 0.01 at the retail market, own price (fJ=.
0.999, p < 0.01) and P = -1.688, p < 0.01 at the wholesale and retail markets respectively.
Profitability models showed that duration in business had significant effects at the retail
market (fJ = 0.647, p < 0.01) and at the wholesale market (fJ = 0.808, p < 0.01) while total
operation costs had significant negative effect on profitability at the farm level (jJ = -0.258, p
< 0.01). Barriers to entry into the market had fJ = 0.873, p < 0.01 on wholesale profits, fJ =
0.117, P > 0.05 and P = 0.003, p > 0.05 on retail and farm profits respectively. Unlike at the
farm and retail markets, high monopoly powers existed at the wholesale market (L= 0.8043).
The study concludes that demand and profitability of sweet potatoes are determined by
several factors which vary in their magnitude of effects. Sweet potato is an inferior good and
its market is imperfectly competitive. This study recommends enhanced competition at the
wholesale market. Retailers should direct their purchases to markets dominated by low
income buyers. Farmers should increase their profits by reducing their operation costs and
potential sweet potato sellers should gain hands on experience before starting their own
sweet potato businesses. Findings of this study may be used for decision-making in the sweet
potato sub sector by the sweet potato traders and other stakeholders and for further research
in the sweet potato industry in Kenya. | en_US |
