School of Business and Economics

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Browsing School of Business and Economics by Author "Ateka, Josiah M."

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    Productivity and Its Determinants in Smallholder Tea Production in Kenya: Evidence from Bomet and Nyamira Counties of Kenya
    (Journal of Agricultural Economics and Rural Development, 2018) Ateka, Josiah M.; Onono, Perez Ayieko; Etyang, Martin
    The smallholder tea sub-sector makes an important contribution in the Kenyan economy. Although subsector has enjoyed relative growth in terms of acreage, output and number of growers, productivity has remained low. Industry trends show that there are wide differentials between actual and potential yields, indicating underlying production inefficiencies and considerable potential to improve the farmers’ income and livelihoods. This study used a semi–log productivity regression model to investigate the determinants of productivity in smallholder tea production in Kenya. The study used survey data of a random sample of 525 tea farming households collected from two leading production regions in Kenya. The results show that location specific heterogeneities, farm size, the intensity of family labor applied in tea farming, access to extension through the farmer field schools, credit utilization and the tea marketing arrangements have significant influence on tea productivity. In order to exploit the existing potential, we recommend policies that focus on correcting imperfections in the agricultural labour markets, consolidation of small tea farms, and expansion of credit and extension programs. Additionally, the policy formulation and implementation process should take into account the existent regional heterogeneities in the different tea growing areas of Kenya.
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    Technical Efficiency and its Determinants in Smallholder Tea Production: Evidence from Nyamira and Bomet Counties in Kenya
    (Global Journal of Science Frontier Research: D Agriculture and Veterinary, 2018) Ateka, Josiah M.; Onono, Perez A.; Etyang, Martin
    The smallholder tea sub-sector in Kenya has enjoyed relative growth in acreage, output, and number of growers since its inception in the early 1960s, but productivity has remained low. There are huge differentials between actual and potential yields suggesting underlying production inefficiencies. This study estimated the level of technical efficiency and analyzed its determinants among tea farmers from two selected counties in Kenya. Using data from a sample of 525 farm households, the non-parametric data envelopment analysis was applied to estimate technical efficiency scores. The scores were then regressed on a set of explanatory variables to establish their influence on efficiency. The average efficiency score of 0.46 indicates that overall productivity in Kenya’s smallholder tea sub-sector is low but has a potential to increase if most of the farmers can adopt practices of the frontier farms. The intensity of family labor use, farm size, age of the tea farm, education level of the household head, access to extension services through the farmer field schools, and the sale of green leaf through alternative marketing channels have a significant influence on levels of efficiency