Demand and perception of fertilizer : among small-holder farmers in Kenya

Abstract: Hunger is a problem in some parts of the world (www, FAO 1, 2012). The lack of food is often a result of insufficient knowledge in soil fertility management (Röing de Nowina, 2012). Ongoing hunger and malnourishment are quite prevalent in Sub-Saharan Africa and are often combined with poverty (www, FAO 1, 2012). Farming is the most common occupation in this area and the farms are often small-scale farms with subsistence crops and a few cattle. The farmers who operate these small-scale farms are economically a weak group. They do not have a steady income, as one example. Additionally, in Sub-Saharan Africa, there is a problem with a negative soil nutrient balance; which means that more nutrients are taken from the soil than what is added (FAO, 2003). The lack of nutrients could be related to the economic situation of the farmers, whom often do not have the economic means to buy inputs, such as chemical fertilizer (Ariga et al., 2008). The overall main objective in this study is to get comprehension for the economic situation for small-holder farmers in Kenya. The specific objectives are to determine what influence their perception on different methods to improve soil fertility and their willingness to pay, (WTP), for the fertilizer Diammonium Phosphate, DAP. The reasons behind the use of a certain product method are such as the factor demand and the profit maximization problem. However this is not expected to give the whole picture, but only a part of the explanation. Therefore the perceived value of a method, from the farmers’ perspective, will as well be taken into consideration. The method chosen for the study was empirical interviews; 27 farmers in Central Kenya, Embu, and 29 farmers in Western Kenya, Bondo, participated in the study. The basis for the interviews was a questionnaire in which the farmers were to relate to different statements about soil fertility management. During the interviews a payment card was also presented to the farmers. Through the payment card the farmers’ WTP for DAP was measured. The farmers in Embu gave a high importance to the combined use of chemical fertilizer and livestock manure. These two methods were the most frequently used in the area. In Bondo, on the other hand, the highest importance was from the use of crop residues for mulching and from crop rotation with legumes. The most used technologies were the use of livestock manure and crop residues, whereas chemical fertilizer was rarely used in the area. The WTP for DAP was determined to be 44 Ksh/kg which is about half of the actual price in year 2012; however, the farmers in Embu could not afford to use a sufficient amount for their farming. Nevertheless, they could afford to use a small amount. In Bondo nearly none of the farmers could afford any use of the fertilizer. How the farmers perceive a certain method to improve soil fertility depends on their economic situation, the effort connected to the use of the method, the supply of the input and the knowledge about the method. Those factors are assumed to have an impact on the demand of an input.