An Economic Analysis of Forage Technologies Identified by National Agricultural Research System for Western Kenya
Japhether Masinde Wanyama (Dip., BSc, MSc)

Master of Philosophy in Resource Economics and Management of the Moi University Eldoret, November, 2003

Abstract
The government of Kenya has given the dairy sub-sector high priority as a way of improving income generation and food security. Smallholder farmers who contribute about 70% of marketed milk dominate the sub-sector. However, the sub-sector faces several constraints. The primary constraint to increased dairy productivity is lack of adequate feeds. The National Agricultural Research Systems (NARS) have developed forage technologies, which have not been fully adopted. The low adoption has been attributed to inappropriate technologies and high cost of forage production. This study was designed with the objectives of analyzing the economics of perennial forage technologies identified by NARS, generate napier grass yield response curves to nitrogen and phosphorous nutrients, estimate economic optimum levels of the nutrients and compare these levels with farmer and NARS recommended fertilizer rates. Data used in the analysis were collected from farmers who participated in on-farm experimental trials carried out in the Uasin Gishu, Trans Nzoia, Kisii, Nyamira and Gucha districts between 1987 and 1999. This was complemented with a formal survey using a pre-tested structured questionnaire on fertilizer application on napier grass in 1999. The survey was done in clusters where the on-farm trials were located.  A sample-frame was established in each cluster by listing all households. A sample of 180 farmers was randomly selected from each cluster using linear systematic sampling technique. Benefit-cost analysis was done using Benefit-Cost ratio (BCR) and Net Present Value (NPV) while regression analysis technique was used to estimate nutrient optimal levels. Descriptive statistics for the survey data were computed. The results of Benefit-Cost analysis showed that most forage technologies were economical to adopt and comparable to maize production. For example, in ley pastures, haymaking followed by direct grazing gave lower NPV and BCR than hay making alone. Farmers also ranked highly forage technologies with high economic returns. The regression results showed that the response of napier grass to Nitrogen (N) and Phosphate (P) applications varied with seasons and sites. The optimal fertilizer recommendation was higher than farmer application rates but lower than NARS recommendations. Based on these findings, research and extension of forages should emphasize on economic benefits and farmer evaluation. Farmers should also be advised through various extension methods and techniques on the benefits of forage production technologies in order to enhance the adoption and subsequently increase dairy production for food and surplus for sale. Finally, periodic review of economic analysis of forage technologies is necessary because of changing socio-economic environment.