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Abstract
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Article Information:
Identifying Efficient and Profitable Farm Enterprises in Uasin-Gishu County, in Kenya
N. Kibet, J.K. Lagat and G.A. Obare
Corresponding Author: Kibet Noah
Submitted: 2011 April, 14
Accepted: 2011 June, 27
Published: 2011 September, 10 |
Abstract:
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In Uasin-Gishu County, many of the farm enterprises are associated with low incomes due to price
fluctuation, poor utilization of scarce production resources and increasing land sub-division. To improve the
low farm incomes, farmers have gradually diversified their farming activities by adopting other farm enterprises
perceived to be high yielding with high market value. The objective of this study was to compare Technical
Efficiency (TE) and Gross Margins (GM) of different farm enterprises within Uasin-Gishu County to help
farmers make informed decisions on the right combination of farm enterprises that eventually improve farm
income. Cross-sectional data from 100 randomly selected farmers were collected and subjected to Gross Margin
Analysis and Data Envelopment Analysis (DEA) methods to determine Gross Margins and Technical Efficiency
scores respectively. The results showed that, passion fruit and dairy farming had the lowest level of Technical
Efficiencies (56.6 and 43.4%, respectively) and higher levels of Gross Margins (Kshs 325,849 and Kshs 51,560,
respectively). Relative to maize and wheat on the other hand, maize and wheat had the highest level of
Technical Efficiencies (66.3 and 75.3%, respectively) and at the same time low Gross Margin levels (Kshs
38,980 and Kshs 37,880, respectively) relative to passion fruit and dairy farming. Passion fruit and dairy
farming were the more profitable farm enterprises and have a lot of potential to improve farm incomes than
maize and wheat farming but only if proper utilization of the scarce resources is observed.
Key words: Diversification, farm enterprises, gross margin, low farm income, technical efficiencies, ,
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Cite this Reference:
N. Kibet, J.K. Lagat and G.A. Obare, . Identifying Efficient and Profitable Farm Enterprises in Uasin-Gishu County, in Kenya. Asian Journal of Agricultural Sciences, (5): 378-384.
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ISSN (Online): 2041-3890
ISSN (Print): 2041-3882 |
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