Banana Value Chain Factors and Marketing Channels: A Case Study of Meru, Embu and Tharaka-Nithi Counties in Kenya

Abstract

Banana is a tropical crop grown in most developing countries, where it is commercialized by smallholder farmers. Banana is a major source of income, improved food security and possess great potential for value addition and export. Kenya is the largest producer of banana in East Africa, where it is a major source of food and income for smallholders. However, despite all these benefits, little is reported about its value chain factors and marketing channels in Kenya. Apparently, there are many restricting constraints in terms of banana supply and marketing management. Therefore, this study mapped socio-economic factors in the banana value chain and identified marketing channels in one banana-rich region, comprising Meru, Embu, and Tharaka-Nithi in Kenya. The study employed a cross-sectional survey design and multi-stage sampling of 384 respondents, comprising farmers, traders, and middlemen. A structured questionnaire was administered to respondents to collect primary data, which was subjected to descriptive and econometric analyses. The study found that majority of the farmers were small-scale, who used family labour (60%) and had limited access to credit and extension services. Middlemen were the dominant actors in marketing channels, compared to direct marketing. Farming experience and land allocated to banana were significant predictors with P=.030 and .040, respectively in Tharaka-Nithi, and P=.030 and .014, respectively in Embu. In Meru, land allocated to banana, type of labour, farming experience and education level were significant predictors with P=.012, .009, .059 and .080, respectively. Most farmers did not have a specific buyer of their bananas and hence were prone to exploitation by middlemen. Also few farmers got information on marketing channels. These findings provide insights into challenges faced by small-scale banana farmers in the region and recommends enactment of policies that support farmer access to credit, extension services, and direct marketing channels. Sustained sensitization of farmers on value chain requirements should instill the right marketing channel to adopt and consistently use.