MODELING OF SUPPLY AND DEMAND FOR MAIZE IN KILIFI DISTRICT, KENYA: A COBWEB MODEL APPROACH

  • Koech Ronald THE UNIVERSITY OF NEWCASTLE
  • Ndayitwayeko Willy-Marcel
  • Karani Charles
Keywords: Cobweb model, farmgate price, lagged supply

Abstract

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.

Author Biographies

Koech Ronald, THE UNIVERSITY OF NEWCASTLE

Department of Business Management and Economics, Pwani University, Kenya

Ndayitwayeko Willy-Marcel

Department of Economics and Rural Development, University of the Burundi

Karani Charles

Department of Crops Science, Pwani University, Kenya

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Published
2018-01-31