DETERMINANTS OF THE RISK ATTITUDE OF INDIGENOUS CHICKEN FARMERS AND THE EFFECT OF RISK ATTITUDE ON INDIGENOUS CHICKEN PRODUCTIVITY IN KENYA
Abstract
Indigenous Chicken (IC) keeping in Kenya is predominantly based on an extensive system that is characterized by high mortality rates, resulting mainly from disease outbreaks and predation. Information on farmers’ risk attitudes is scarce despite the risks inherent in IC production systems. Similarly, it is unclear how socioeconomic factors influence IC farmers’ risk attitudes and how their risk attitudes influence IC productivity. As a result, an understanding of the determinants of farmers’ risk attitude and the effects of risk attitude on IC productivity are critical. Primary data were collected using a structured questionnaire. Multi-stage sampling procedure was used to sample 240 IC farmers from an accessible population of 598 chicken farmers in Nyanza region. Ordinary least squares regression analysis was carried out to determine the influence of the socio-economic variables on the risk attitudes of the IC farmers, and a two-stage least squares regression analysis was used to determine the effect of risk attitude on IC productivity. Total land size, family size, occupation of the farmer, and total household expenditure had a positive and significant influence on the risk aversion behavior of the farmers. Farming experience, number of chickens, and cost of depreciation had a negative impact on risk aversion. The risk aversion coefficient had a negative and significant relationship with chicken productivity. Farmers’ risk attitude and socioeconomic characteristics should be considered part of the guide to formulating and implementing policy on risk management.
Keywords
Risk attitude; indigenous chicken; determinants; productivity
References
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doi.org/10.1016/j.livprodsci.2004.10.014
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text=DOI%3A%2010.22004/ag.econ.197018
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Kahneman, D., Tversky, A. (1979). Prospect theory: An analysis of choice under Risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185
Komarek, A.M., De Pinto, A., Smith, V.H. (2020). A review of types of risks in agriculture: what we know and what we need to know. Agric. Syst., 178, 102738 https://doi.org/10.1016/j.agsy.2019.102738
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Kyule, N.M., Mwangi, J.P., Nkurumwa, O.A. (2014). Indigenous chicken marketing channels among small scale farmers in Mau Narok division in Nakuru County, Kenya. Int. J. Soc. Sci. Entrep., 1(9). https://api.semanticscholar.org/CorpusID:54869599
Lucas, M.P., Pabuayon, I.M. (2011). Risk perceptions, attitudes, and influential factors of rainfed lowland rice farmer’s in Ilocos Norte, Philippines. Asian J. Agric. Dev., 8, 61. http://dx.doi.org/10.22004/ag.econ.199327
Magothe, T.M., Okeno, T.O., W.B. Muhuyi, W.B., Kahi, A.K. (2012). Indigenous chicken production in Kenya: I. Current status, World. Poul. Sci. J., 68(1), 119–132, https://doi.org/10.1017/S0043933912000128
McNeil, A.J., Frey, R., Embrechts, P. (2015). Quantitative risk management: Concepts, techniques, and tools: revised edition. Princeton University Press.
Meuwissen, M.P.M., Huirne, R.B.M., Hardake, J.B. (2001). Risk and risk management: an empirical analysis of Dutch livestock farm-ers. Livest. Prod. Sci., 69(1), 43–53. https://doi.org/10.1016/S0301-6226(00)00247-5
MOLD (2008). Provincial summaries of livestock population statistics for 2008. Animal Production Division/Livestock Breeding Ser-vices Division, Ministry of Livestock Development.
Moscardi, E., de Janvry, A. (1977). Attitude toward risk among peasants: An Econometric application approach. Am. J. Agric. Econ., 59. Retrieved from: https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle.net%2F10.2307%2F1239398;h=repec:oup:ajagec:v:59:y:1977:i:4:p:710-716
Mose, P.B., Wasike, C.B., Owuor, O.B., Kipsat, M.J. (2018a). Farmers’ attitude towards risk on indigenous chicken in Nyanza Region. J. Agric. Econ. Rural Dev., 4(2), 469–476. Retrieved from: https://www.researchgate.net/publication/326606418_Farmers%27_Attitude_Towards_Risk_on_Indigenous_Chicken_in_Nyanza_Region
Mose, P.B., Wasike, C.B., Owuor O.B., Kipsat, M.J. (2018b). Attitude of the Indigenous Chicken Farmers towards agricultural insur-ance in Nyanza, Kenya. J. Dev. Agric. Econ., 10(5), 146–151. https://doi.org/10.5897/JDAE2017.0853
Murray-Webster, R., Hillson, D. (2008). Managing group risk attitude. Gower Publishing Ltd.
Musser, W.N., Patrick, G.F. (2002). How much does risk really matter to farmers? In: R.E. Just, R.D. Pope (Eds.), A comprehensive assessment of the role of risk in U.S. Agriculture. Kluwer: Boston. https://doi.org/10.1007/978-1-4757-3583-3_24
Ngongolo, K., Chota, A. (2021b). Chicken production, flock size, management systems, and challenges in the Dodoma region in Tan-zania. Poul. Sci., 100(6), 101136. https://doi.org/10.1016/j.psj.2021.101136
Ngongolo, K., Omary, K., Andrew, C. (2021). Social-economic impact of chicken production on resource-constrained communities in Dodoma, Tanzania. Poul. Sci., 100(3), 100921. https://doi.org/10.1016%2Fj.psj.2020.12.019
Nguyen, N.C. (2007). Risk management strategies and decision support tools for dryland farmers in southwest Queensland, Australia. (Unpublished doctorate thesis). The University of Queensland Gatton. Queensland. Australia. Retrieved from: https://espace.library.uq.edu.au/view/UQ:134695/Nam_Cao_Nguyen_Thesis_Final_version_25_07_07.pdf?dsi_version=ce9c32a8adfae29e37fad144ee2f3b7c
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Phoebe Bwari Mose
pbwari@maseno.ac.ke
Maseno University, Kenya Kenya
Maseno University, Kenya Kenya
Chrilukovian Bwire Wasike
Maseno University, Kenya Kenya
Maseno University, Kenya Kenya
Mary Jepkemboi Kipsat
Maseno University, Kenya Kenya
Maseno University, Kenya Kenya
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