FACTORS AFFECTING VALUE ADDITION OF IRISH POTATO AND EFFECTS ON SMALLHOLDER FARMERS’ INCOME GENERATION IN BOMET COUNTY, KENYA

Abstract

Agriculture contributes over 25% of Kenya’s gross domestic product (GDP), and 65% of export earnings thus making it the backbone of the country’s economy. The Irish potato enterprise provides substantial income from sale of potatoes and their value added products that lead to immediate payment. Irish potato is an important food commodity throughout Kenya. However, there is scares information on the factors affecting value addition and their influence on farmers income in Bomet County. The study identified and characterized Irish potato producers in Bomet County, determined factors affecting value addition in potatoes, compared profitability of raw and value-added Irish potato products in County and finally determined the effects of value-addition on farmers’ welfare. A structured questionnaire was used to collect cross-sectional data from 200 respondents selected randomly through multistage sampling procedure. To characterize Irish potato producers in Bomet County, descriptive statistics were used while factors affecting value addition of potatoes in Bomet County were analyzed using binary logistic regression model. Gross Margin Analysis (GMA) was used in determining profitability of raw and value added Irish potato products. The Statistical Packages for Social Scientists (SPSS) was used in data analysis and results presented in tables and graphs. From the study, the results show that many of the respondents were farmers standing at 70.5 % while majority of potato farmers were in the age middle age bracket of 36-60 years which stood at 40.5%. Male farmers dominated decision making at 75% and most farmers had potatoes in 0.1 to 3acres at 88.5% indicating that potato is one of the main crops in the area. Furthermore, non-value adders had more land under potatoes than value adders at an average of 0.1 to 3 acres. The most common form of value addition practiced by the farmers was sorting (66.5%) while grading, chipping and frying was practiced by 0.5 % of farmers in each case. Most farmers, who were not employed, carried out value addition at 70.5 % followed by the employed and students, respectively. Majority of the farmers with no education carried out value addition at 67.5% as compared to those who had primary education at 32.5%. Group membership, cost per unit of potatoes and total land size are key variables influencing value addition. Sorting was found to be the most profitable form of value addition. It was also found out that value adders earned more income than non-value adders per unit area. There is need to identify cost cutting technologies for grading, chipping and frying as this forms of value addition are not profitable to the farmers