Abstract

This study aimed at estimating the farmers’ demand for fertiliser in the production of potatoes, and analysing the structure, conduct and performance of the fertiliser market in Nakuru district, Kenya.  250 farmers and 36 fertiliser traders selected using systematic and simple random sampling procedures, respectively, were interviewed between February and April 2001.  Two models (the Structure-Conduct-Performance Model, and the Potato Input Demand Analysis model) were used to assess fertiliser use in potato production in Nakuru district, Kenya.  The results indicated that it was mainly the producer price that affected the fertiliser demands.  The fertiliser prices were generally high and were mainly influenced by the relatively low usage of fertiliser in potato production.  Also, the study revealed that there was formal marketing and distribution channel for fertiliser and that fertiliser trade depicted oligopolistic tendencies.  Therefore it is clear that producer price of ware potato is critical in determining fertiliser use in the study area and that there is need to streamline the distribution and marketing of fertiliser.

Key words: Potato, fertiliser demand, policy reforms, productivity, input utilisation, market structure-conduct-performance.