Profits and Efficiency along Pearl Millet Market Chain: A Value Addition Approach

Abstract

Pearl millet is the most commonly used millet around the world. However, in Kenya, little information exists concerning the distributional implication of pearl millet market structure, market channel efficiency and its determinants. As a result, the characteristics of pearl millet value chain have remained scanty in the literature. This paper characterizes Kenya’s pearl millet value chain focusing on its structure, functions and trade within the production areas (Mbeere district) and the final markets (Nairobi) of Kenya. Data was obtained from 255 market actors (120 producers, 2 rural agents/ brokers, 25 traders, 8 processors and 100 consumers) between August-September 2012 and analysis done using value addition approach and a multiple regression models. Evidence showed that high returns to participation accrued to processors compared to producers and traders despite their limited functions. Transport costs, border taxes and commission charges were major components of marketing cost. Pearl millet market channel efficiency was positively influenced by level of education and whether an actor undertook value addition activities before selling positively influenced.

Keywords: Mbeere district, Market channel efficiency, Final markets, pearl millet