Testing Market Integration for Fresh Pineapples in Kenya

This paper is based on a survey of thirty-one market actors from producing and consumption markets in Kenya. The data was collected through personal interviews. In analyzing integration of p ineapple markets we use Ravallion-type model. Results show that pineapple market in Kenya is oligopsonistic in nature with aspects of collusion amongst the urban middlemen and local market traders thus barring further entry by oth er potential actors. There was little market integration between urban markets and producing markets, and no integration between the rural producing markets. However, model results show that information flow between production and consumption markets significantly influence market integration, an indicator for efficiency in resource allocation and price transmission which is likely to result in lower transaction costs or higher profits to market actors. The paper recommends for policy intervention to promote information flow in the pineapple market chains as a strategy for improving rural incomes and encourage more market actors to enter and participate for efficiency in the marketing system.

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 Record created 2017-04-01, last modified 2018-01-22

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