African Journal of Business Management Vol. 1 (4), 077-084, July 2007          
ISSN 1993-8233 © 2007 Academic Journals

Full Length Research Paper

Technical efficiency and regional market integration of cross-border bean marketing in western Kenya and eastern Uganda

L. W. Mauyo*, J. R. Okalebo², R. A. Kirkby³, R. Buruchara³, M. Ugen⁴, C.T. Mengist¹, V.E. Anjichi⁵ and R.O. Musebe ⁶

¹School of Business and Agricultural Resource Economics, Moi University, P.O. Box 1125, Eldoret, Kenya.

²Department of Soil Science, Moi University, P. O.  Box 1125, Eldoret, Kenya.

⁵Department of Horticulture, Moi University, P. O. Box 1125, Eldoret, Kenya ³CIAT-Africa, P. O. Box 6247, Kampala, Uganda

⁴Namulonge Agricultural and Animal Production Research Institute (NAARI)P. O. Box 7084, Kampala, Uganda.

⁵Kenya Agricultural Productivity Project (KAPP), District Service Unit, P. O. Box 4500, Eldoret, Kenya.

⁶Department of Development Studies, Moi University, P.O. Box 7670, Eldoret, Kenya.

*Corresponding author. E-mail: lmauyo@yahoo.com

Accepted 15, May 2007

This study was conducted to assess the status of cross-border bean marketing patterns in the border districts of Kenya and Uganda. Common bean (Phaseolus vulgaris L.) is an important legume crop in East and Central Africa, providing protein, calories and cash income for rural households.  Smallholder farmers in Kenya and Uganda have adopted improved bean varieties. However, the demand for common bean in Kenyan market far outstrips local supply and the country is a net importer from Uganda and Tanzania. In the recent years, Kenya’s bean production has been declining mainly due to bad weather conditions and poor pricing policies.  An efficient bean marketing system enhances food security. The objectives of this study were to assess the technical efficiency in terms of marketing margins and assess the regional market integration in the bean marketing system. Purposive and systematic random sampling methods were used to select the study districts and bean traders respectively. One hundred and six respondents were interviewed using structured questionnaires. Descriptive statistics were used to analyse the data. The Statistical Package for Social Scientists (SPSS) was used to generate the Pearson’s bivariate Correlation coefficients. The study revealed that marketing margins earned by the middlemen, agents and exporters in both Kenya and Uganda though in excess of transfer costs were justified, given the existing institutional and legal barriers. The results further revealed low levels of technical efficiency due to market imperfections. Correlation coefficients analysis of wholesale bean prices revealed that regional bean markets in the study area are integrated.

Key words: Bean, bean prices, cross-border marketing, market integration.