6.

AGRICULTURAL ECONOMICS 5
(AGRICULTURAL MARKETING AND
ORGANISATIONS)
Definition of terms. Types of markets.
1. A market- is a place where A. Perfect/ competitive market- sellers
buyers and sellers meet to buy and buyers are unable to determine the market
and sell goods and services/ carry price.
out business transactions. OR  The market price is acceptable/ equilibrium
A group of buyers and sellers in and any buyer can purchase from any seller and
sufficiently close contact with one vice versa.
another for exchange to take place B. Imperfect /non-competitive market-
between them. sellers and buyers are able to determine the
2. Marketing -refers to the flow of prices in the market.
goods and services from the Buyers and sellers are not aware of the prices
producer to the consumer. offered by others.
It includes all the activities involved Examples of non-competitive markets are
in the transfer of goods and services monopoly, oligopoly and monopsony.
from the producer to the consumer.

21-Mar-22 © Sam obare 1

Types of market situations/ 2. Monopsony- market situation dominated by
structures. one buyer. The individual buyer determines
1. Monopoly/Monopolistic market price.
competition- monopoly is a 3. Oligopoly- it consists of few firms/ sellers
market dominated by one seller. such that mutual interdependence/
Monopolistic competition consists of collaboration exists among them.
large number of small firms/sellers When each firm/ seller makes its policies it takes
competing against each other. into consideration the effect on other firms.
Examples include clothing stores, fast 4. Pure/ perfect competitive market- it
food restaurants. consists of many sellers and buyers.
It has the following characteristics/ The buyers and sellers do not have any control
features: over the prices.
i. Existence of few sellers of the Conditions for purely competitive market
commodity.
i) Large number of sellers
ii. The product quality varies from
one firm to another. ii) Large number of buyers.
iii. The products are close substitutes. iii) Homogenous product
iv. There is a perfect product iv) Same price for the product
differentiation between the firms. v) Free entry and exit from the market
v. A single seller/ firm may dominate vi) Buyers and sellers have perfect knowledge of
the market due to technological market trends
superiority.
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DEMAND.
• Demand refers to the quantity of goods
and services buyers/ consumers are
willing and able to buy at a specific
price in a given market at a given time.
The law of demand.
• This law states that the lower the price of
a product, the higher the quantity
demanded and the higher the price of a
product, the lower the quantity
demanded of it.
OR
• The quantity of products demanded
varies inversely with the price.
• The relationship between demand and
price is known as the demand schedule e.g.
Price (kshs) 160 140 120 100 80

Quantity (kgs) 20 40 60 80 100

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FACTORS WHICH INFLUENCE DEMAND 5. Taste and preferences of the consumer-
OF A COMMODITY. A change in consumers' tastes and preferences
1. Price of related goods or in favor of a commodity increases the demand
services/substitutes- When the price of of particular commodities.
a substitute increases, the demand of the 6. Price expectations- If in future the prices
commodity increases, e.g. if the price of of certain commodities are likely to go up,
butter increases the demand of margarine then the demand of such goods may increase
(which is a substitute of butter) increases. now and vice versa.
2. Population size of buyers/ 7. Level of taxation-if the government
consumers.- When population size increases tax on certain goods, this will
increases, the demand for goods and increase their prices hence decreasing the
services will also increase. demand.
3. Income level of consumers/ buyers- 8. Advertisement- it promotes the sale of a
An increase in the income level of given good or service hence increasing its
consumers will cause an increase in demand demand.
for commodities.
9. Perishability/change in quality- when
4. Beliefs, customs and toboos- they will agricultural goods e.g. meat, milk, tomatoes
determine the total demand of a given good and fruits deteriorate in quality, their demand
or service e.g. religious beliefs of Muslims decreases.
forbid consumption of pork, thus decreasing
demand. 10. Future expectation/ uncertainty- when
there is fear of shortage of a given commodity
in future, buyers/ consumers tend to buy
more for stocking thus increasing demand.
© Sam obare 21-Mar-22 4
STUDY QUESTIONS a) Give a reason for the shape of the curve
1. Explain the factors that: labeled A.
a) Decrease the demand of tea in the market • As the price of the commodity increases
the quantity demanded decreases and
b) Increase the demand of tea in the market. vice versa.
2. The diagram below illustrates the law of b) If the price of the commodity remains
demand in agricultural marketing. Study constant, explain three factors that can
it and answer the questions that follow. cause the curve to shift from A to B.
 If there is an increase in the income of
consumers.
 Effective advertisement/sales
promotion.
 Increase in the price of a related goods/
substitute.
 If there is an increase in population.
 Change in taste and preference in favor.
 If the quality of the commodity goes up.
 Fear of shortage in future.

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ELASTICITY OF DEMAND (Ed). 2. Inelastic Ed- There is less than
• This is the degree of responsiveness of proportional (lower) increase in demand
demand for a product when there is a with change/ decline in price. Ed is less
change in price. than 1.
% 𝐜𝐡𝐚𝐧𝐠𝐞 (∆)𝐢𝐧 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐝𝐞𝐦𝐚𝐧𝐝𝐞𝐝
Ed= % 𝐜𝐡𝐚𝐧𝐠𝐞 (∆)𝐢𝐧 𝐩𝐫𝐢𝐜𝐞
Types of elasticity of demand
1. Elastic Ed- There is more than
proportional (higher) increase in demand
with change/ decrease in price. Ed is more
than 1. 3. Unitary Ed-This is when demand for a
product responds by the same proportion
as the change in price. Price elasticity of
demand is equal to one.

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Example.
𝐜𝐡𝐚𝐧𝐠𝐞 (∆) 𝐢𝐧 𝐩𝐫𝐢𝐜𝐞
Calculate the elasticity of demand when % ∆ in price = 𝐱 𝟏𝟎𝟎
𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐩𝐫𝐢𝐜𝐞
1000 loaves of bread are demanded at a 𝟐𝟎−𝟐𝟑
price of Kshs. 20 per loaf while only 600 = 𝐱 𝟏𝟎𝟎
𝟐𝟑
loaves were demanded at Kshs. 23 per −𝟑
=𝟐𝟑 𝐱 𝟏𝟎𝟎
loaf.
% 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐝𝐞𝐦𝐚𝐧𝐝𝐞𝐝 =-13.04%
Ed= % 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐩𝐫𝐢𝐜𝐞 % ∆ 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐝𝐞𝐦𝐚𝐧𝐝𝐞𝐝
Ed=
𝐜𝐡𝐚𝐧𝐠𝐞 (∆) 𝐢𝐧 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 % ∆ 𝐢𝐧 𝐩𝐫𝐢𝐜𝐞
% ∆ in Quantity = 𝐱 𝟏𝟎𝟎
𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝟔𝟔.𝟔 %
𝟏𝟎𝟎𝟎−𝟔𝟎𝟎 = −𝟏𝟑.𝟎𝟒 %
= 𝐱 𝟏𝟎𝟎
𝟔𝟎𝟎
𝟒𝟎𝟎
= 5.11 (Negative sign is ignored)
=𝟔𝟎𝟎 𝐱 𝟏𝟎𝟎 Ed is therefore elastic.
= 66.6%

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FACTORS THAT DETERMINE 4. Time lag- if the commodity can be
/AFFECT ELASTICITY OF postponed to another day, then it has
DEMAND. elastic demand e.g. cement for
1. Availability of substitutes- construction.
commodities with many substitutes 5. Time span- elasticity of demand is
usually have elastic demand. usually greater in the long run
If a commodity has no substitute e.g. because some adjustments can easily
salt its demand is inelastic and has to be be done while it is small in the short
bought at any price . run.
2. Degree of necessity- a 6. Proportion- commodities that
commodity e.g. salt is of great form the large proportion of the
necessity hence has to bought at any total expenditure have elastic
price hence has inelastic demand. demand.
3. The number of uses the
product can be put to- the
commodity that can be put into
many uses has elastic demand.

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SUPPLY
Example
• Supply is the quantity of goods and
services that sellers/ suppliers/ producers Price (kshs) 100 105 113 120 130 150
are willing and able to sell/ supply at a Quantity 10 20 30 40 50 60
specific price in a given market and period Supplied (Kg)
of time.
The law of supply.
• The law states that as the price of the
goods and services increases the
quantity of goods and services supplied
increases and vice varsa.
OR
• The quantity of goods and services
supplied is directly proportional to the
price of the commodity.
• The relationship between supply and price
is referred to as the supply schedule.
• When the supply schedule is represented
graphically, a supply curve is obtained.

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FACTORS WHICH INFLUENCE / 6. Price expectation- if the future price of
DETERMINE SUPPLY. the a commodity is expected to rise the
supply will decrease now i.e. the suppliers
1. Number of sellers/suppliers- will hoard the commodity to release it
When the number of sellers dealing when the price has increased and vice
with the same product increases the versa.
supply of the same will increase.
7. Government policy- Government
2. Price of related goods imposition of tax on a commodity raises its
/substitutes- When the price of a cost of production, thus, fewer farmers are
substitute of a commodity increases, the willing to produce it. This lowers the
supply of the commodity decreases e.g. supply of that particular commodity and
if the price of margarine increases in vice versa.
comparison with that of butter,
suppliers will increase the supply of 8. Cost of production- If the cost of inputs
margarine and reduce that of butter. such as fertilizers and seeds is low/
decreases, then it is easy for farmers to buy
3. Technology- modern techniques of them and apply on crops hence increasing
production will increase production yield/ supply.
hence increase supply.
9. Change in the supply of associated
4. Weather- Favorable weather /related goods- Increase in the supply of
conditions lead to increased production associated commodity increases the supply
thus increasing supply. of the other e.g. supply of meat will
5. Change in prices- When the price automatically lead to increase in supply of
increases, the farmers will have hides and skins.
incentive to produce more hence 10. Transport system-improved and
increasing supply. efficient transport will facilitate the
delivery of farm produce to the market and
hence increase supply.

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ELASTICITY OF SUPPLY (Es). Example
This is the degree of responsiveness of If the price of millet changes from ksh.
the quantity supplied of a product to 10 to ksh. 12 results in a change of supply
change in price. from 400 kg to 600 kg. Calculate the
% 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐝 elasticity of supply.
Elasticity of supply=
% 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐩𝐫𝐢𝐜𝐞
Types of elasticity of supply.
1. Inelastic supply- This is when the
in price leads to a slight change in
supply. Elasticity of supply (Es) is less
than one.
2. Unitary elastic supply- This
occurs when a change in price brings a
change in supply in equal proportions.
The elasticity of supply (Es) is equal to
1.
3. Elastic supply- This is when price
increases, the quantity supplied
increases at a higher proportion. The
elasticity of supply (Es) is more than
one.

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PRICE THEORY FACTORS WHICH AFFECT THE PRICE
OF COMMODITY
• This is the mechanism by which the price
is determined in the market. 1. Price of substitutes/related goods.
• Price is the amount of money paid in 2. Price expectations in the future.
exchange for a good or service. 3. Quality of commodity/ product.
Determination of market prices. 4. Tastes and preference of the buyer.
 The market/ equilibrium price is attained 5. Number of sellers/supply
when supply and demand are equal. 6. Number of buyers/demand.
Price control 7. Change in production technique.
 The government takes the following
measures to ensure and maintain
production:
1. Gives subsidy by reducing the costs of
production inputs.
2. Fixes prices of the related products.

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Example

21-Mar-22 © Sam obare 13

Explanation. 3. Selling on behalf of farmers- presenting
• The market price/equilibrium price is the produce to consumers in the most
Shs.180 while the quantity demanded and attractive manner.
supplied (equilibrium quantity) is 600 kg. 4. Advertisement-this increases demand of the
• A rise in price would change both the quantity produce.
supplied and demanded. 5. Transporting and distributing- done to
MARKETING FUNCTIONS. areas of consumption to ensure consumers
/buyers get the product at the right time and
• Marketing refers to all the processes
at the right place.
involved in the transformation and flow of
goods and services from the farm to the 6. Processing-it involves changing a product
consumer. from a raw state to a finished state.
• Marketing functions are the processes It improves quality and reduces bulkiness hence
involved in marketing. They include: facilitating transportation.
1. Buying and assembling- buying 7. Packing- refers to wrapping the product into
involves acquisition of goods from farmers a case, container, sack.
on payment of cash. Assembling means It is done to:
collecting of produce from individual
farms and concentrating them at i) Ease transport and reduce storage space.
convenient points. ii) Avoid damage, theft and adulteration on its way
2. Storage of farm produce- to make to the market.
commodities available and minimize iii) Facilitate the measurement of the
losses/ as a marketing strategy. commodities into quantities that can easily
21-Mar-22 handled.
© Sam obare 14
8. Grading and standardization- 9. Packaging- refers to the process of
Grading is the sorting of the produce designing and creating a cover for the
into different lots each with same product.
characteristics e.g. size, shape, flavor, Reasons/aims/objectives of
degree of ripeness. packaging.
Standardization is the establishing of i. Ease transport and reduce transport
uniformity in quality and quantity of the space.
product. ii. Enables the farm produce to be handled
Grading is done to provide uniform correctly.
standard / cater for various consumers, iii. It makes marketing more convenient.
allowing the buyers to purchase what they
want. iv. Prevents physical deterioration,
adulteration and substitution.
v. Offers easy labelling, measurement and
attachment of sales instructions and
descriptions.
vi. It promotes sales.

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10. Collection and analysis of PROBLEMS OF MARKETING
market information/ market AGRICULTURAL PRODUCE
research- done to determine the AND POSSIBLE SOLUTIONS.
appropriate market price of a product,
where and when to sell. 1. Perishability- most agricultural
products are perishable leading to
11. Financing- the finance is obtained losses due to spoilage and farmers
from public and commercial banks incur extra costs in transportation/
which is used to finance all the processing/ storage.
activities from the original buying of
the raw produce to the final sale of the To prevent losses due to perishability,
finished goods. the products must be stored in a
refrigerator (refrigeration), sold
12. Bearing of risks- the risks include immediately after production/
price fluctuations, change in processed, canned or dehydrated.
government policy, theft of the
produce, change in consumers 2. Seasonality- most agricultural
preferences, e.t.c. products are seasonal in nature
hence creating storage problems/
It is done by use of chemicals/ insurance causes oversupply at times leading to
to protect the farm produce. price fluctuation.
The problem can be solved by storing
surplus production in form of buffer
stocks to be releasing during scarcity.

21-Mar-22 © Sam obare 16

3. Bulkiness of most agricultural 6. Changes in market demand- this
produce-this increases storage and leads to price fluctuation.
transport costs/ making it difficult and The problem is solved by contracting/
expensive to transport. contract production.
 The problem is solved by processing the 7. Inadequate capital-this leads to
products. poor financing of various marketing
4. Poor storage- leading to heavy losses of functions.
the produce. The problem can be solved by formation
The problem can be solved by pooling their of co-operatives
resources together in co-operatives in order 8. Poor quality of produce-this leads
to purchase expensive storage facilities. to price fluctuation.
5. Poor transport system/ lack of The problem can be solved by processing
vehicles- this leads to losses due to farm produce and using modern
spoilage. technology of production.
The problem can be solved by improving the
road network and formation of co-
operatives.

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9. Lack of perfect market MARKETING AGENTS/AGENCIES
information-this makes selling Are bodies which facilitate the marketing
difficult/ exploitation by middlemen process.
The problem can be solved by formation of They include:
co-operatives, proper market research and
training of farmers. 1. Wholesalers- they buy the produce in
large amounts/ bulk from farmers and
10. Changes in supply/ competition resell to others/ process them.
from cheap imports- this leads to
price fluctuations. 2. Retailers-they are traders who buy goods
in bulk from the wholesalers and sell to
The problem can be solved by using modern
technology, contract production and surplus consumers in small quantities.
to be stored to regulate supply. They also offer special services e.g.
11. Government interference-through its restaurants/ hotels.
agents leading to price fluctuations. 3. Itinerant traders/ middle men-they
12. Lack of knowledge in marketing- buy products from individual farmers and
this leads to heavy losses. resell them.
13. Delayed payments-this leads to lack of 4. Brokers/ commission agents- they act
capital for farm operations. on behalf of other business people for a
fee/ commission.

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5. Co-operative societies/ unions- they buy FUNCTIONS OF MARKETING
the produce from farmers and help to sell them (STATUTORY) BOARDS.
e.g. Kenya Co-operative Creameries limited for
selling milk. 1. They buy farmers' produce or
delegate the responsibility to an
6. Marketing boards- they promote production
and marketing of agricultural produce and buy
approved agent.
produce from farmers. 2. They fix prices of farm produce in
7. Processors/ manufacturers- they buy and consultation with the government.
process produce from farmers. 3. They collect farm produce from
AGRICULTURAL ORGANIZATIONS areas of production and deliver it to
These are bodies that promote agricultural activities. the stores or factories.
They include 4. They inspect the production process
to ensure high quality of produce.
A. Marketing/ statutory boards.
B. Co-operative societies. 5. They arrange for the supply of farm
inputs such as seeds and fertilizers.
C. Farmers associations and unions.
6. They sell the products on behalf of
A. MARKETING (STATUTORY) BOARDS.
farmers.
• A marketing board is a statutory organ established by
an Act of Parliament. 7. They provide storage facilities for
farmers’ produce.
• Marketing boards carry out one or more of the
marketing functions. 8. They provide finance/credit/loan
facilities to farmers.
21-Mar-22 © Sam obare 19
9. They provide technical advice /advisory EXAMPLES OF MARKETING/
services on production/extension STATUTORY BOARDS.
services where applicable. 1. Coffee Board of Kenya-has the
10. Some process and package farm following roles/ functions:
produce. An example is the Kenya Tea a) Licensing coffee producers and
Development Agency (KTDA) which producers.
processes tea.
b) Carrying out research on all aspects of
11. They undertake research services on coffee production and processing.
techniques of production.
c) Acts as a government agent on all
12. They regulate production to prevent matters related to international coffee
under supply of the produce. agreement e.g. prices.
13. They package/ pack the farm produce. d) Marketing of coffee.
14. They invest the accrued profit. 2. Kenya meat commission- it has the
15. They advertise/ promote sales of the following roles/ functions:
produce. a) Buying cattle from beef farms.
b) Slaughtering beef animals.
c) Grading carcases.
d) Marketing beef locally and overseas.
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3. Pyrethrum Board of Kenya- it 5. Cotton Board of Kenya- it has the
has the following functions/ roles: following functions/ roles:
a) Providing advisory services to the a) Planning, monitoring and regulation of
pyrethrum farmers. cotton growing and ginning (separation
b) Managing pyrethrum nurseries of seeds from raw cotton fibres).
which provide planting materials to b) Licensing and control of cotton ginners.
farmers. c) Regulation and control of quality of raw
c) Processing pyrethrum from farmers. cotton.
d) Marketing processed products. d) Regulation of the export or import of
e) Buying pyrethrum from farmers. cotton lint or cotton seed/fibres.
f) Carrying out research to obtain the e) Regulation and control of quality and
bet cultivars through selection and supply of seed through ginneries.
breeding. f) Carrying out and promotion of research
4. National Irrigation Board- and development in cotton production
developing and improving irrigation and processing technology.
projects. g) Providing or co-ordinating training for
any sector of the cotton industry.

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6. Kenya Sisal Board- has the following 8. Kenya sugar authority- it has the
roles/ functions: following functions/ roles:
a) Promoting production of sisal. a) Advise on development of sugarcane
b) Regulation of production, grading and production (for the manu.facture of
marketing of sisal. sugar)
c) Registration of sisal products. b) Advise on rules and regulations necessary
for development of sugar industry.
d) Licensing of sisal factories.
c) Formulate and advise on the price of
e) It examines all sisal for export to ensure sugarcane.
and maintain high quality.
d) Develop and implement a sugarcane
f) Rebaling sisal which may be spoilt on testing service and quality control.
transit from sisal estate to the port.
e) Advise on all aspects of sugar processing.
7. Horticultural crops development
authority- it has the following roles/ f) Register all sugarcane producers within
functions: sugar factory zones.
a) Offering advisory services to farmers g) Ensure availability of adequate statistics
(through extension officers) relating to sugarcane industry.
b) Collecting produce from farmers. h) Advise on utilization of sugar by-
products.
c) Sorting and grading the produce.
d) Marketing the products locally and
internationally.

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9. National cereals and produce 11. Agricultural development
board- it has the following roles/ corporation- it has the following
functions: roles/functions:
a) Regulation and control of production a) Running and operation of state farms.
and storage of cereals (e.g. maize, b) Raising high quality livestock which are sold
wheat) to farmers as breeding stock.
b) Buying and storing cereals (which are c) Bulking planting materials e.g. maize, Irish
then sold to millers and consumers) potatoes and Napier grass.
c) Advising the minister on production, d) Promotion of agricultural production through
importation or exportation of cereals. field demonstrations.
10. Agricultural finance
corporation- it has the following
roles/ functions:
a) Providing agricultural credit/ loans to
farmers at reasonable rate.
b) Providing technical services to the
farmers to ensure the best use of the
borrowed loan/ credit.
c) Ensure repayment of loan.

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B. CO-OPERATIVE SOCIETIES. PROCESS OF FORMATION OF CO-
A co-operative is an organization of people OPERATIVES.
who have joined together voluntarily with a A minimum number of ten adults are required
common purpose for a mutual economic for the formation of co-operative.
benefit.
Members interested elect interim committee.
Types of farmers’ Co-operative societies.
The committee decides on the name of the co-
i) Farmer/Producer co-operatives- operative and draws/ writes up its constitution.
are formed by groups of individual
farmers who pool resources together, The committee works with local leaders to
buy large pieces of land and operate as a register the co-operative with the commissioner
group. for co-operatives.
At the end of the year each farmer is paid Factors necessary for proper functioning
dividends according to members’ shares. of farmers co-operative societies
ii) Consumer co-operatives- they buy 1. Availability of adequate funds or capital/
inputs are in bulk and sell them to the inputs.
members at lower prices.
2. Training of personnel or availability of
iii) Marketing co-operatives- they are advisory services on managerial skills.
formed to help small scale farmers
market their produce collectively. 3. Loyalty on the part of all farmers, co-
Each farmer produces a certain product, operators and officials to support their
pooled together and transported to the organization.
market thus reducing production costs.

21-Mar-22 © Sam obare 24

4. Proper and accurate record keeping and 6. Withdrawal from membership-
accountability for all operations. members are free to join or withdraw
5. Efficiency in production and marketing of voluntarily.
produce.
6. Honesty on the part of personnel regarding Upon withdrawal, members get back their
finances. share contribution.
7. Timely payment of farmers dues. 7. Loyalty- Members are expected to be
PRINCIPLES OF CO-OPERATIVES. faithful and loyal to their cooperative
1. Open membership- anybody can join society.
regardless of race, religion, sex, education Members of a producer co-operative must
and political inclinations after payment of
required amount. sell their produce through their co-operative
2. Equal rights- co-operatives are run only.
democratically where the principle of one- 8. Co-operative principle- Co-
man one-vote operates.
operatives are supposed to join the co-
3. Principle of share limit- A member may operative movement at the primary,
buy shares in the co-operative up to a specific
maximum limit to avoid domination by one district, national and international levels.
member or a group of members. 9. Non-profit motive- Co-operatives are
4. Interest on shares- profit is shared to essentially non-profit making
members as dividends on the basis of share organizations but their main objective is to
contributions.
improve the living standards of their
5. Education- Members should be continually
educated to ensure that they have relevant members.
skills of the co-operative society.
21-Mar-22 © Sam obare 25
FUNCTIONS OF AGRICULTURAL 7. They provide employment for
CO-OPERATIVE SOCIETIES. members/ farmers and other
1. They pool resources together to buy people.
expensive machinery e.g. tractors and 8. They benefit the farmers from lower
land. taxes charged.
2. They provide education/ technical 9. They help to market the farmers
information to members / farmers. produce.
3. They provide credits/ loans to 10. They provide strong bargaining
farmers. power for members on policy issues.
4. They negotiate for higher prices for 11. They invest and pay dividends to
members/ farmers. members.
5. They reduce overhead costs e.g. 12. They help to negotiate loans for
transportation, storage and use of their members without security e.g.
machinery. title deed.
6. They bargain with suppliers to give 13. They provide services e.g. banking
discount on seed, fertilizer and other services, artificial insemination
inputs/ provide inputs at lower (A.I.) services to its members.
prices.

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C. AGRICULTURAL ASSOCIATIONS 2. Youth organizations- they include:
AND UNIONS.
A. 4-K clubs (Kuungana, Kufanya, Kusaidia
1. Agricultural Society of Kenya (ASK). Kenya).
Roles/ functions of ASK Youth organization whose members are drawn
a) Holds competitive agricultural shows/ from primary schools.
exhibitions.
The clubs are run by the Ministry of Agriculture
b) Encourages breeding and importation of but at school level teachers and other local leaders
pure breeds of livestock. assist members.
c) Encourages and assists in official milk
recording scheme. The motto is “Learn to do by doing”.
d) Organizing the running of Young Farmers Roles/ functions of 4 k-clubs.
Club. i) Teaching by carrying out practical projects to
e) Organizing the National Ploughing Contests. show that agriculture can be a profitable
f) Organizing tours for its members. project.
g) Publishing the Kenya Stud book. ii) Exposing the youth to existing and improved
Agricultural technologies.
h) Publishing a monthly journal called “The
Kenya Farmers”. iii) Developing and enhancing leadership qualities
i) Awarding bursaries for local and overseas among the youth.
students. iv) Using the youth as agents of change by taking
j) Organizing local and international exchange part in competitive shows.
programmes.
v) Involvement in field trips to places of
k) Organizing national tree planting. Agricultural interest.
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b) Young Farmers Club of Kenya (YFC) 3. Kenya National Federation of
• This is a youth organization under the Agricultural Producers (KENFAP)
Agricultural Society of Kenya (ASK). • Its members are individual farmers as well as
• Members are from secondary schools and from various commodity associations e.g.
middle level colleges. i. Kenya Horticultural Producers Association.
Roles/ functions. ii. Cereal Growers Association.
1) Participating in exhibitions and iii. Cotton Growers Association.
competitions at ASK shows. iv. Coffee Growers Association, etc.
2) Involvement in agricultural projects at club Roles/ functions.
level.
i) Bargaining for better prices of farm produce.
3) Participating in Young Farmers Club (YFC)
rallies. ii) Ensuring adequate and timely supply of farm
inputs.
4) Involvement in workshops and seminars
related to agriculture. iii) Bargaining for reasonable and affordable
prices of farm inputs.
5) Participation in national tree planting
activities. iv) Provision of better infrastructure including
roads, electricity, telephone services to
6) Participation in exchange programs both facilitate quick delivery of farm produce to
locally and abroad. the market.
7) Participating in national ploughing contests.

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4. Agricultural-based Women
v) Provision of loan facilities. Groups.
vi) Adequate control of crop and livestock • They are women groups mainly dealing with
pests and diseases. agricultural activities, a majority of which
vii) Looking for markets of farmers produce are located in rural areas.
both locally and overseas. • These women groups engage in agricultural
viii) Offering technical services to farmers. activities such as growing vegetables or
particular cash crops, rearing dairy goats,
ix) Representing Kenyan farmers in the poultry production, rearing of dairy cattle,
International Federation of Agricultural fish rearing.
Producers.
Objectives of women based groups.
x) Publishing a monthly magazine known as
the "Farmers'Voice". i. To alleviate poverty among the rural
women.
ii. To empower women financially in order
to improve their living standards.

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Role of agricultural based women Problems that Agricultural based
groups women groups face.
i. Loaning members to finance their 1. Lack of managerial skills e.g. in
farming activities. accounting and book keeping.
2. Lack of technological knowledge to
ii. Enlightening members on improve ways of carrying out certain
improved/modern farming agricultural activities they are involved
techniques/emerging issues in.
iii. Establish income generating 3. Lack of funding.
activities for members 4. Limited access to credit facilities.
iv. Assist in marketing agricultural 5. Low level of education of women
produce for the members. especially those in rural areas.
v. Buy farm inputs in bulk and sell to 6. Women's multiple roles and
members at a low price responsibilities. This hinders them from
devoting more time to their groups,
vi. Collectively assist members in their which means the groups do not exploit
farm operations their full potential.
vii. Guarantees members for loans.
viii. Gathering information on intended
projects/feasibility study.
ix. Acts as agencies of change in a
community.

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