Cost-Price Squeeze in Export Oriented Crop Production: Welfare Implication for Commercialized Smallholder Tea Producers in Kenya
B. L. Kiplimo, L. Inyanje, V. Ngeno, T. Kipkurgat, M. C. Lopokoiyit
Journal of Economics, Management and Trade · pp. 374–381 · Published 6 Nov 2014
10.9734/BJEMT/2015/12398Abstract
Tea production, a leading export crop in Kenya and produced largely by smallholders was analyzed to determine how the input and output prices adjust to both inflation and exchange rates. It was hypothesized that prices received and prices paid by farmers are not cointegrated and that a cost-price squeeze could not be rejected in the long-run. Based on cointegration analysis results, we could not reject the null hypothesis of no cointegration between prices paid and prices received in the long run. Macroeconomic variables impacts unevenly on the tea sector with probable negative effects on the welfare of smallholders. The livelihood of export oriented cash crop producers in less developed countries, therefore, becomes integrally vulnerable to market forces. Price volatility coupled with constant market shocks could impact negatively on the general livelihoods of the smallholder export farmers particularly food access at the household level.
Cited by 1
Solomon Aklilu, Flora Guangzhi Cai, Deepananda Herath · Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie · 2025
Related research
- Selected haematological markers and C-reactive protein, not AGTR1 SNP, are associated with essential hypertension in Tharaka Nithi County, Kenya — shares topic coverage
- Sickle Cell Disease Impact on Youth Health-Related Quality of Life in Mathare, Nairobi, Kenya — shares topic coverage
- Assessment of the Effectiveness of Community Health Promoters in Hypertension Care in Imenti North Sub-County, Kenya — shares topic coverage
- Assessment of Tuberculosis Preventive Therapy (TPT) Uptake among Healthcare Workers at Meru Teaching and Referral Hospital, Kenya: Barriers and Recommendations — shares topic coverage
- Acacia senegal (L.) Wild. Associates with a Diversity of Beneficial Micro-symbionts in the Arid and Semi-arid Lands of Kenya — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
1
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.