Challenges Affecting Marketing of Horticulture Produce in Kenya: A Case of Pineapple Fruits in Olare Area in Homa Bay County

Abstract

The general objective of this research was to evaluate the challenges affecting the marketing of horticultural produce in Kenya with a special focus on pineapple fruits in Olare area in Homa Bay County. The study sought to achieve to the following specific objectives; to investigate the effects of road infrastructure on the marketing of Pineapple fruits at Olare area in Hone Bay County. to determine the effects of middlemen on the marketing of Pineapple fruits at Olare area in Home Bay County: to establish the effects access to information on the marketing of Pineapple fruits Olare area in Homa Bay County and to investigate the effects of price on the marketing of Pineapple fruits Olare area in Homa Bay County. The study adopted a descriptive research method in analyzing, interpreting, and presenting data. Out of 140 target population the study used stratified random sampling to select 104 respondents as the sample size. The researcher used questionnaires as the key data collection instrument. The questionnaire items comprised of both closed-ended and open-ended questions. To ascertain the validity and reliability of the questionnaires, a pre-test and pilot survey was conducted. Statistical vital analyses were conducted using Statistical Package for Social Sciences (SPSS) to conduct descriptive statistics and inferential analysis. The study also revealed a positive correlation between differentiation and marketing of the pineapple fruits. The regression equation illustrated that taking differentiation into account and other factors held constant marketing of pineapple fruits increases and both variables were significant. On the relationship between road infrastructure and marketing of pineapple fruits the relationship was found to be positive though not significant. The findings were presented using tables and figures. The results on the effects of road infrastructure on the marketing of Pineapple fruits at Olare area in Homa Bay County established that poor road network has made pineapple farmers to be small scale farmers because of its perishable nature. Transport costs play an important role in agricultural development by making both input and marketing easier. The cost of transport is determined by the nature of road infrastructure in the area. The farmers often trade at the farm-gate to avoid the high cost of taking small produce to the market and the farm accessibility and distribution of pineapple produce depends on the nature of road infrastructure in the area. They also said market prices that framers pay for inputs and receive for their outputs depend on the transportation costs made by traders of inputs and outputs. The undeveloped roads slowed down the transportation of pineapple fruits to the market on time. The distances to markets affect the marketing of the market of pineapple produce. The poor transport network in the area influences she purchasing power of the consumers. On the effects of middlemen on the marketing of Pineapple fruits Olare area in Homa Bay County, the study found that linking of farmers to markets is necessary to overhaul the sub-sector because the pineapple fruits market is mainly being controlled by some unscrupulous middlemen. It was also revealed that retail sectors like supermarkets tend to build long-term relationships with middlemen to guarantee a continuous pineapple supply. .Middlemen try to control the market prices by reducing their market. Middlemen are encouraged by a situation of farmers having inadequate information concerning the market prices. This opportunistic behavior is expected to raise transaction costs and create imperfections in the market. Farmers find it a challenge to identify reputable intermediaries and to ensure that the marketing system minimizes opportunities for dishonesty. Due to the responsibility of middlemen being movement of pineapples from the farm to final consumers, they tend to control the pineapple sector by purchasing them directly from the farms. Being that they also play an important role in distributing and providing agriculture produce to the end-users as they get the information from ultimate pineapple buyers and set the price. In turn this reduces the time-preference losses that occur when agents must search for a trading partner To establish acts of access to information on the marketing of Pineapple fruits Olare area in Home Bay County, the study establishes that improving physical infrastructure such as information technology which will connect smallholder farmers to markets and reduce transaction costs thus minimizing risk. Also, the majority of the respondents agreed that framers equipped with information have stronger bargaining power and can access several markets at the same time. Rural farmers can benefit from receiving pricing information via SMS. The use of mobile phones for marketing by small scale farmers is substantial, providing ability to negotiate with buyers as they are prior aware of the cost. The respondents were neutral that mobile phones have improved the income of the farmers by improving the efficiency of marketing and reduce transaction costs. To investigate the acts of pricing on marketing of Pineapple fruits Olare area in Homa Bay County, the study found that efficiency and cost reduction in the marketing of agricultural produce is important for the success of the horticulture sector. Also, the majority of the respondents agreed that farmers incur more expenses in marketing their produce. Prices of horticulture products face fluctuations every year affecting both farmers and consumers. Pineapple fruit faces no exemption due to the seasonal nature. Therefore the price is inversely related to supply. In the case of Olare area the respondents were neutral regarding the statements that price fluctuation of pineapple fruits is seasonal which varies due to the increase in supply and demand. An increased inflation rate highly affects the prices of commodities in the market and this long-lasting effect limits the ability of customers to purchase commodities in the market. Price fluctuation in pineapple fruits is due to the imbalance in supply and demand. The study concluded that farmers often trade at the farm-gate to avoid the high cost of taking small produce to the market and the farm accessibility and distribution of pineapple produce depends on the nature of road infrastructure in the area. The information technology helps to connects farmers to markets and reducing transaction cost and minimizing risk. Linking farmers to markets is necessary to overhaul the sub-sector because the pineapple fruits market is mainly being controlled by unscrupulous middlemen. The efficiency and cost reduction in the marketing of agricultural produce is important to the success of the horticultural sectors. The study recommends improvement of the road network easing accessibility by common modes of transport such as lorries, pick-up and bicycles in Home Bay County. The study also recommends that farmers should directly begin trading their produce at the farm-gate to avoid the high costs of taking small produce to the market. The study also recommends that farmers should make use of information technology to increase connection to markets, reducing transaction costs and minimizing risk. On matters middlemen the study recommends that they should help reduce the time- preference losses that occur when agents must search for a trading partner. Finally, the study recommends that there should be a structured and agreed price formula beneficial to both middlemen and farmers.