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For more information about the Department of Agricultural and Resource Economics, and about training and career opportunities, please contact:

Undergraduate:
ugarec@ag.arizona.edu
Phone: (520) 621-6244

Graduate:
garec@ag.arizona.edu
Phone: (520) 621-2421

Related Links:

Africa Online - Kenya

Kenya's Future
Helping Farmers Through Market Reform

Kenya has prime agro-climatic conditions in much of the country. Almost any crop can be grown—including tea, coffee, maize, and cotton. Since independence in 1963, most agricultural markets have been controlled by government marketing boards. Farmers are only allowed to do business with government firms. Today, many of these marketing boards are thought to be inefficient and often ineffective in serving farmers. Sometimes, farmers are paid long after they deliver their produce, or even not at all. Many of the processors and handlers are high cost and wasteful. As a result, farmers get low prices.

At the same time, many government officials worry that relinquishing control would lead to abandonment of producers in disadvantaged areas. Some fear the emergence of greedy middlemen, who will charge higher prices to consumers and pay farmers even less than the government marketing boards. These fears cause many in government to be hesitant about turning over market controls to private businesses.

Economic studies have shown that such fears are unjustified. Research has helped identify the problems with existing boards and has predicted the economic impacts of converting to a market system dominated by the private sector. In most cases, the emergence of the private sector would come about with ample competition. Costs of operation for private businesses would be much lower than those of the government firms, resulting in much higher prices for farmers. In a country with an average per capita income of only $300, the changes embodied in market reform can have a large impact.

Faculty Involvement
Professors Eric Monke, Gary Thompson, and Dennis Cory have been collaborating with Egerton University, the principal agricultural university in Kenya. Their research has taken them to all the major agricultural areas of Kenya.

Student Involvement
Kristine Crandall, M.S. graduate, has worked with the AID Farm Market Research Project in Kenya. She currently runs her own economic consulting business in Colorado.

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