THE ECONOMICS OF PRODUCTION AND
MARKETIN G OF POTATOES IN
MERU
DISTRICT, KENYA "/
By
STEPHEN GICROVIlMBO~R
A thesis submitted in part fulfilment for the Degree of Master
of Sfience in Agriculture in the University of Nairobi.
June, 1976.
ABSTRACT
Potatoes
are an important
the market is characterized
availability
food in Kenya.
by large fluctuations
and prices of potatoes,
more planning
conduct and performance
Information
of the potato
is somewhat limited and surveys are required
necessary
gathered
data.
in both
and there is need for
at both micro and macro levels.
the structure,
However,
on
industry
to provide
the
Such data for planning purposes must be
through surveys in representative
potato producing
This thesis gives the findings
from a survey cond-
areas.
ucted in Meru District,
where a random sample of 75 growers
and 23 traders were interviewed,
January 1976.
between September 1975 and
The major hypotheses
tested are:
(i')· yield depends on relative
the farm production
of purchased
structure
share of potatoes
and is proportional
in
to the level
inputs;
(ii)
potato acreage
is influenced
by price levels
during the season prior to planting;
(iii)
local market,prices
are influenced
regional prices and will differ by transfer
(iV)
net returns
competition
costs';
to growers in Meru can be incre-
·ased by shifting potato supplies
(v)
by inter-
to the market
through storage;
in the trade is limited ~d
growers have little bargaining
power because
there ~re few
so that the growers will be associated
traders
with particular
traders or outlets;
(Vi)
marketing
growers
during
to cooperate
Pink,
takes about
~
the commonly
months
grown potato variety
to mature.
the year, one between
February
season) and the other between August
season).
The competing
vegetables,
maize
enterprise.
Crop rotation
inputs
for land preparation,
chemicals
it matures.
in potato
(With Dithane
include
produc t i.on
chemicals,
and spraying
disease limiting
Meru District,
are ma ch i.ne r-y
p:ant protection
'2 to '3 weedings
blight)
Major
periods.
and
before
was found
27/66 in Kibirichia,
and labour,
constraints
to
Kiirua
in
such as fertilizers
especially
a~ planting,
Blight was the o~y
severe
production.
Two types of supply
Meru potatoes:
_en t e r-p r Lc ee .
cost per bag of po~atoe3
respectively.
wheat,
is only a minor
any of these
were cash, to pay for inputs
or protection
(Long hains
pyrethrum,
M45 to oontrol
ans . 19/79 and shs.
and Upper Abothuguchi
and December
A crop may require
Production
be Shs. 16/89,
and June (Short Rai!'.'?
livestock
involves
in
Two crops are produced
seed, fertilizers,
and labour.
3 to 4 spr~rings
production
enterprises
and coftee;
The major
weeding
in solving
problems.
Kerr1s
Meru,
are willing
the local
systems
ure inVOlved
supply system
whi.le the interregional
involves
in marketing
trade within
supply system
involves
· (1ii)
trade between Meru and areas outside the district.
tions between growers and particular
traders or outlets,
based either on services given to particular
trader they supply or on friendship
to reduce competition
supplied
growers
or kinship
in the trade.
to the market
Associa-
by the
ties, tended
Quantitigs
of potatoes
depend ed on the amounts retained by
growers for seed and for family consumption.
The amounts
retained for seed and for family consumption
were estimated
be 25% and 13% respectively;
therefore,
to
only about 62% of the
output is marketed.
Three types of market available
were considered:
producing
district;
(i)
zone;
(ii)
and (iii)
Nairobi) outside
a local market
Prices
(Wakulima,
in these markets
showed
so that it was possible
these markets
at a profit.
Market-
transfer costs, storage costs and fees
such as the cess of shs. 1/05 per bag of potatoes
of the district.
the
during the year, but there were
times when they differed appreciably
between
in the
(Meru town) within
a major consumer market
th~ district.
ing costs included
(Kibirichia)
an urban market
the same trend or developments
to ship potatoes
for Meru potatoes
However,
storage periods
a month, and the storage costs
taken out
rarely exceeded
rarely exceeded a shilling
per bag per month.
Hypothesis
the level of purchased
tests indicated
that yield depended on
inputs and was influenced
by the rela-
tive size of potato plot, which was adopted as a measure
of
· (iv)
the relative ~portance
of potatoes
in the farm.
However,
~
,
the small and variable amounts of fertilizers
have significant
~pact
fertility condition
used did not
on yield, so that the actual soil
before farming was significant.
relationship was established
No
between potato acreage in a
given season and the prices of p.otatoea during the previous
'season. Prices
in the local markets
costs and were correlated
differed by transfer
to Nairobi prices,
integration may have been low.
Local markets
estimated to handle most of the marketed
were inadequate
rather low:
outlets because
though market
in Meru were
output, but there
the prices obtainable
were
growers did not get adequate net returns.
How-
ever, net returns could not be increased by shifting supplies
to the market
through storage because prices in the Nairobi
markets, which wer~ assumed
to be major outlets for potatoes
so stored in Meru, were found to be at their peak at the
t~e
when Meru potatoes are harvested.
like to form an organization
Growers in Meru would
to store, grade and secure
markets for their potatoes.
Lack of difference
eating potatoes
discouraged
to be sold as seed-potatoes
was another problem:'
mit a maximum
avoided.
between prices for seed and
storage and sprouting
at the planting
time.
farm storage facilities
of potatoes
Storage
could only per-
storage period of 6 weeks, if losses were to be
Roads to the producing
ssible when wet;
zones were rough and inacce-
beSides, means of transport were rare and
(v)
·expensive.
However,
growers have to hire transport when
supplying the local trading centres.
Two main problems
in potato produotion
and marketing
't
are evident:
(i)
there is need for more and intensive
work on yield trials (at varying
amounts of inputs) before
growers can be advised on the right types and amounts of
fertil izers to be used in produc tion;
potato marketing
body is needed
iciencies or distortions
the potato marketing
and
(ii) an orgar..
"_2ed
to combat the observed
ine:t'f-
in interreg~.':m,alprices and improve
in the country.