trends in kenyan agricultural productivity: 1997-2007 betty kibaara, joshua ariga, thomas jayne and...

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Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity, Competitiveness and Rural Poverty in Kenya: Laying the Foundation for Vision 2030 17-18 September, 2008

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Page 1: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Trends in Kenyan Agricultural Productivity: 1997-2007

Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande

Conference on:Agricultural Productivity, Competitiveness and Rural Poverty in Kenya:

Laying the Foundation for Vision 2030

17-18 September, 2008

Page 2: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Presentation Outline Background

Objectives of the Study

Data and methods

Trends in land ownership and cultivated land

Contribution of crop income

Trends in productivity

Factors contributing to productivity growth, decline or stagnation

Policy implications

Page 3: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Background

Agricultural productivity levels in SSA below that of other regions in the World

Since 2000, productivity growth in SSA impressive

In the past, agricultural production largely a function of acreage, further growth will have to be driven by productivity growth

Local and Regional strategies Strategy for Revitalizing Agriculture (SRA) Comprehensive African Agricultural Development Program

(CAADP) Alliance for Green Revolution in Africa (AGRA) Kenya Vision 2030

Page 4: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Objectives To examine trends in the Kenyan agricultural

productivity Cereal (maize) Industrial crops( tea, coffee and sugarcane) Horticultural crops ( Irish potatoes and cabbages) Dairy

Explore factors driving or hindering productivity growth

Draw implications for policy and suggest actions needed for sustainable productivity growth

Page 5: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Contribution (%) of Crop Income to the overall Annual Household Income

Zone 1997 2000 2004 2007

Coastal Lowlands 2 4 2.4 4.2

Eastern Lowlands 2.3 3.7 3.6 4.7

Western Lowlands 3 2.6 2.6 5.6

Western Transitional 5.3 7.5 8.8 10.7

High Potential Maize Zone 11.5 10.4 13.8 13.3

Western Highlands 5.6 11.9 6.6 8.8

Central Highlands 7 15.2 9.2 10.3

Marginal Rain Shadow 2.1 0.9 4.2 4.6

Overall Sample 6.6 8.8 8.2 9.3

40

21

13

27

50

15 17 18

46

16 17

27

44

1621

18

0

10

20

30

40

50

60

Crop Livestock Business Salaries &remittance

Source of Income

Perc

ent

1997

2000

2004

2007

Page 6: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Trends in Owned and Cultivated Land

6% decline in mean per household owned land (from a 6.1 in 1997 acres to 5.8 acres in 2007)

Cultivated land declined slightly from 3.5 acres in 1997 to 3.4 acres per household in 2007

Commodity 1997 2000 2004 2007

Mean Cultivated acres/HH that produced the commodity

Maize 1.8 2.2 1.9 1.9

Tea 1.08 1.04 1.01 1.05

Sugarcane 2.18 2.18 2.03 2.5

Coffee 0.56 0.55 0.49 0.48

Cabbages 0.38 0.24 0.21 0.21

Potatoes 0.58 0.59 0.48 0.44

Page 7: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Mean Maize Productivity Zone 1997 2000 2004 2007

90 kg - bags/acre

Coastal Lowlands 2 4 2.4 4.2

Eastern Lowlands 2.3 3.7 3.6 4.7

Western Lowlands 3 2.6 2.6 5.6

Western Transitional 5.3 7.5 8.8 10.7

High Potential Maize Zone 11.5 10.4 13.8 13.3

Western Highlands 5.6 11.9 6.6 8.8

Central Highlands 7 8.8 9.2 10.3

Marginal Rain Shadow 2.1 0.9 4.2 4.6

Overall Sample 6.6 7.2 8.2 9.3

40% growth

Page 8: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Maize Productivity- Pure stand Vs Intercrop

 Year Overall Pure stand Intercrop

(90 –kg bags/acre)

1997 6.6 9.8 6.1

2000 8.8 9.6 8.8

2004 8.2 10.4 8.1

2007 9.3 11.2 9.1

78% of Total maize area is intercropped

Page 9: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Drivers of Maize Productivity Growth

  1997 2000 2004 2007

Fertilizer adoption (% of hhs) 57 63 67 71

Fertilizer use rate (kg/acre) 56 55 60 59

Increased use of organic fertilizer 44 47 50

% of hhs adopting High yielding maize varieties 70 69 69 74

% of hhs using fertilizer plus hybrid maize seed 51 55 57 61

Distance to fertilizer seller 8.1 5.7 4.1 3.4

Distance to seller of hybrid maize N/A 5.6 3.9 3.4

Number of maize seed varieties planted

Western Transitional 17 27

High Potential Maize Zone 23 32

Western Highlands 9 18

Page 10: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Tea Productivity(Kgs of green leaf per acre/year)

Zone District 1997 2000 2004 2007

High Potential Maize Zone Bomet 4,017 3,765 3,878 3,704

Western Highlands Kisii 2,142 3,154 3,358 4,278

Vihiga 897 1,624 2,642 4,549

Central Highlands Meru 4,364 4,444 5,510 5,147

Murang’a 4,722 4,461 4,215 4,674

Nyeri 4,653 4,295 4,514 4,706

Overall Kg/acre 3,931 3,869 4,206 4,507

Overall kg/tea bush 1.12 1.11 1.21 1.29

15% growth

Page 11: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Drivers of Tea Productivity Growth

Increasing fertilizer adoption (% of hhs) 84% to 98%

Increasing fertilizer use rate (kg/acre) Western highlands (Vihiga & Kisii)

Page 12: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Coffee Productivity(Cherries in kg/acre)

Zone 1997 2000 2004 2007

Eastern Lowlands 790 326 134 432

Western Lowlands 279 429 569 321

Western Transitional 800 262 176 41

High Potential Maize Zone 551 539 352 357

Western Highlands 986 1,285 1,849 993

Central Highlands 1,933 2,616 1,810 1,639

Overall Sample 1,459 1,826 1,577 1,285

30% decline since 2000

Page 13: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Factors affecting Coffee productivity

  1997 2000 2004 2007

Fertilizer adoption (% hhs) 44 51 45 37

Fertilizer use rate (kg/acre) 183 364 256 147

No. of hhs producing coffee 257 308 283 250

•Management problems•Declining international prices

Page 14: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Sugarcane Productivity(tonnes/acre)

Zone District 1997 2000 2004 2007

Western Lowlands Kisumu 18.1 15.9 15.7 21.4

Western Transitional Bungoma 37.4 31.6 34.7 27.4

Kakamega 20.4 26.7 26.1 23.4

 Overall Sample 22.3 26.1 26.7 23.9

8.4% productivity decline since 2000

Page 15: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Factors contributing to decline in Sugarcane productivity

  1997 2000 2004 2007

Fertilizer adoption (% hhs) 29 51 49 69

Fertilizer use rate (kg/acre) 118 197 141 110

No. hhs producing s/cane 161 154 158 145

•Poor cane varieties•Low sucrose level & high fibre content•Take long to mature

Page 16: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Cabbage Productivity (Kg/acre)

Zone YearMean productivity

(kg/acre)% of hhs using

fertilizer

No. of hhs producing cabbages

Area under production (acres/hh)

High Potential Maize Zone 1997 8,948 64 31 0.34

2000 7,188 51 112 0.20

2004 3,304 50 81 0.18

  2007 5,338 47 45 0.17

Central Highlands 1997 6,783 68 65 0.38

2000 11,829 83 91 0.29

2004 13,187 78 79 0.18

  2007 11,101 80 93 0.17

Overall Sample 1997 7,464 66 96 0.37

2000 9,269 67 203 0.24

2004 8,184 64 160 0.18

  2007 9,222 63 138 0.17

23% Cabbage Productivity Growth, but fluctuating

Page 17: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Irish Potato Productivity (Kg/acre)

Zone YearMean productivity

(kg/acre)

% of hhs using

fertilizer

No. of hhs producing potatoes

Area under production (acres/hh)

High Potential Maize Zone 1997 2,526 45 85 0.58

2000 4,291 49 190 0.68

2004 2,651 48 182 0.48

  2007 3,013 42 140 0.54

Central Highlands 1997 2,398 79 179 0.49

2000 5,169 87 212 0.51

2004 2,860 83 219 0.43

  2007 2,810 85 219 0.34

Overall Sample 1997 2,440 62 264 0.52

2000 4,752 68 402 0.59

2004 2,765 66 401 0.45

  2007 2,889 63 359 0.42

18% Cabbage Productivity Growth, but fluctuating trends

Page 18: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Annual Milk productivity (liters/cow/year)

Zone 1997 2000 2004 2007

Coastal Lowlands 139 418 207 701

Eastern Lowlands 688 856 785 890

Western Lowlands 327 360 367 367

Western Transitional 677 662 812 1,022

High Potential Maize Zone 1,269 973 1,313 1,692

Western Highlands 902 1,005 1,071 836

Central Highlands 1,856 1,969 2,243 1,991

Marginal Rain Shadow 1,015 632 1,488 1,434

Overall Sample 1,164 1,079 1,298 1,371

18% productivity growth

Page 19: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Drivers of Milk Productivity Growth

 Partial Factors 1997 2000 2004 2007

Households growing fodder (%) 16 37 46 53

Proportion of cultivated land allocated to fodder (%) 3 6 7 12

HHs with improved cows (%) 62 65 70 66

Nominal prices of milk in Ksh/lt

14 18 18 19

Constant prices of milk (GDP deflator)

25 26 22 19

Page 20: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Other cross cutting services

  1997 2000 2004 2007

Distance to Motorable roads 1.1 1.3 1.1 0.5

Distances to Tarmac roads 8.2 7.7 7.6 7.6

Distance to crops extension service(private and public) 5.4 5.5 5.2 4.6

Distance to veterinary service 4.8 4 4.3 4

% received agricultural credit 25.7 29.6 25.5 32.8

Page 21: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Sources of Agricultural Credit

Sources of Agricultural credit 1997 2000 2004 2007

Commodity Based credit providers

13.5 55.8 62.2 48.7(KTDA, sugar company etc)

Informal money lenders 16.5 10.6 8.6 19.8

Traders/Input stockists 10.4 6.2 3.7 10.5

Cooperatives/SACCOs 55.8 25.9 21.9 10.3

Agricultural Finance Corporation 3 0.5 1.7 5.2

MFI/NGO - 0.5 0.6 3.1

Commercial banks 0.8 0.5 1.2 2.5

Page 22: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Benchmarking Kenya’s Agricultural Productivity Commodity Tegemeo Panel Benchmarking countries

( FAO)

Maize (bags/acre)9

SA- 13 bags/acreArgentina-31 bags/acre

Tea (kg/acre)4,507

Malawi – 3,523India – 2,774

Uganda- 2,601

Coffee ( processed) (kg/acre)214

Brazil- 345Colombia – 436Uganda - 213

Sugarcane (tonnes/acre)28 – 25

Egypt – 40 Malawi – 43Sudan - 42

Dairy (litres/cow per year)

1,371

Argentina – 4,773South Africa – 3,093

Malawi- 461Uganda 331

Page 23: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Summary of the Productivity Trends

Increased ProductivityMaizeTea

Dairy

Declined ProductivityCoffee

Sugarcane

Fluctuating ProductivityHorticulture (cabbages

Irish potatoes)

Page 24: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Key drivers of productivity growth

Infrastructure improvements Increased fertilizer use Technology generation and adoption

Improved seed varieties Uptake of improved dairy cows

Role of markets

Page 25: Trends in Kenyan Agricultural Productivity: 1997-2007 Betty Kibaara, Joshua Ariga, Thomas Jayne and John Olwande Conference on: Agricultural Productivity,

Policy Implications Sustainability of high fertilizer adoption against rising global fertilizer prices requires innovative financing through Private Public

Partnership.

Transaction costs of inputs could be reduced through investment in ‘public goods’ such as physical infrastructure.

Emerging role of input dealers in input delivery system. Up scaling the agro dealer training program could further improve access to inputs

Given the declining land sizes within the smallholder farming sectors of in Kenya, land allocation and land settlement will need to be on the policy agenda.

Introduction of early maturity and high yielding sugarcane varieties would increase efficiency and raise rural household incomes

Irish potatoes are a good substitute and especially with the current rise in maize prices. However, there is no certified potato seed growers in the country. Provision of clean seed could be jointly undertaken by the private sector , development and the government