PhD Thesis
This study was conducted to examine the possibilities of integrating smallholder broiler
producers into the niche market supply chains for improving their efficiency and incomes.
Specifically the study: i) characterize the broiler supply chains with particular emphasis on requirements of participating in the niche market supply chain; ii) analyse technical and cost efficiency of broiler producers; iii) compare the level of benefits realized by broiler producers supplying to niche and conventional retail market outlets; and iv) and analyse the farmers‟ preferential choice decision of supplying to niche markets. Data were collected using checklists and questionnaires where descriptive statistics, stochastic production and cost functions, discounted cash flow and preferential choice analyses were used to analyse the data. The results showed that the structure of supply chain is described in terms of live bird and dressed bird supply channels, where minimum level of coordination existed in both chains. The estimated farm level technical efficiency ranged from 37% to 97% with a mean technical efficiency of 74%. Day old chicks, flock-size and feed intake were critical variables that affected farmers output at 1 percent and 5 percent respectively. Participation by farmers in niche markets significantly influenced technical efficiency and increased output (P<0.01). Farmers were cost inefficient (P<0.05), high cost of feeds, day-old chicks and low price of broiler chicken in the output market are principal causes of the inefficiency. Average return on investment for the farmers supplying to niche markets was significantly (P < 0.01) higher than that of farmers supplying to conventional broiler markets. The net present value (Tshs 5 036 179), benefit cost ratio (1.22) and internal rate of return (46%) for farmers selling to niche markets were higher than accordingly, Tshs 793 938; 1.09; and 30% for farmers selling into conventional broiler markets. Farmers‟ perceptions regarding niche markets indicated that they had positive attitude to participate in these markets. To increase efficiency and access to niche markets, the study recommends that: policy and institutional supports that would increase investment and innovation in the broiler supply chain deserves priority for enhancing chain‟s efficiency, productivity and income.
Danish International Development Agency (DANIDA)