MODELING OF SUPPLY AND DEMAND FOR MAIZE IN KILIFI DISTRICT, KENYA: A COBWEB MODEL APPROACH
- Cobweb model,
- farmgate price,
- lagged supply
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The study aimed at assessing the determinants of demand and supply of maize in Kilifi, Kenya
using the cobweb model for analysis. Results showedthat variations in production of maize were
explained by the prices of cassava, income per capita of consumers and time trend. Price of
cassava (maize substitute) werestrongly significant (p<0.01) and had expected negative sign.
This implied that if the price of cassava increased, farmers would shift from maize production to
cassava production. In the model, an increase of price of a bag of cassava by 1 US$ would
decrease the production of maize by 0.95 per cent in the long-run. Income per capita of
consumers was significant (p<0.1) though with unexpected sign. The study established that there
is need for intensification of maize production due to its importance through provision of the
prerequisite incentives such as extension and inputs.
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