Factors affecting market outlet choice of agroforestry based mango producers in Kwale and Kilifi counties, Kenya: The application of the Multivariate Probit model

Abstract

Access to profitable market outlets for agroforestry mango producers is a major concern in Kwale and Kilifi counties. This paper is set to determine the factors affecting the choice of market outlets among agroforestry mango producers. The study analyzed the market outlets chosen by producers to find out which were the most prevalent chosen. The multivariate probit model was used to determine the factors that affect the choice of market outlets among the agroforestry mango producers. Data were collected using exploratory research through the systematic sampling approach. This resulted in an ultimate selection of 208 respondents, half of which participated in commercial farming and the other half practiced subsistence agroforestry. The results show that of the sampled respondents, 15% sold at farm gate, 63% sold to middlemen, 11% sold to local retailers and 11% sold to town markets. The Multivariate Probit model results indicate that education level (5%), price (1%), access to credit (5%) and age (10%) had a negative significant influence on the producers’ choice of farm gate market outlet as only gender had a positive influence at 10% significance level. Negotiation costs and mango quantity sold had a positive influence in selection of middlemen at 1% and 5% significant level, respectively, while price and cost of transport had a negative influence at 1% and 5% significance level. For the local retail market outlet, price and cost of transport had a positive and negative significance at 1% and 5%, respectively. Lastly, at the town market outlet distance to market outlet, education level (5%), price (1%) and age (5%) positively influenced the selection of the outlet, while both off-farm income and negotiation cost had a negative influence at 5% significance level. The prevalence of mango producers’ selling to middlemen was as a result of the immediate cash offered by the outlet capitalizing on the desperate need for cash by mango producers. However, the town markets offered better returns though the several barriers to enter limited mango producers from accessing them. The results revealed that subsistence agroforestry mango producers dominated the farm gate and middlemen outlets, while producers with commercial systems mostly sold their produce to the local retail and town markets. The high transaction costs involved in accessing potential profitable markets need to be addressed by the relevant stakeholders so as to encourage more agroforestry mango-based producers into market participation.

Keywords

• agroforestry
• market participation and marketing factors