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Consulting the stakeholders on pro-poor market segmentation of maize seed in Kenya

Author: De Groote, H.
Author: Andam, K.
Author: Mugo, S.
Author: Hall, M.
Author: Ngigi, O.
Author: Benjamin Gathigi Munyua
Author: Spielman, D.J.
Year: 2012
ISSN: 2006-9774
URI: http://hdl.handle.net/10883/2232
Abstract: Market segmentation, while popular in the pharmaceutical industry to reach the poor in developing countries markets, have so far not been successful in delivering agricultural technology to poor farmers. In this paper, their potential use in Kenya is analyzed, based on information gathered through an extensive stakeholder consultation. Results show that some market segmentation methods are used. Seed companies, some non-governmental and public extension organizations sell smaller seed packages and starter kits, and provide discounts for low-income clients. Stakeholders expressed a strong interest in larger-scale market segmentation mechanisms for maize seed and fertilizers, in areas where levels of maize production and densities of the rural populace are high. Several challenges remain: direct price discounts to low-income clients were not appreciated, stakeholders preferred mechanisms that allow farmers’ to choose their preferred inputs such as maize varieties, and segmentation based on geography or technology were considered impractical since the poor and nonpoor live in the same areas and use similar technology. A voucher-based approach was generally preferred, with a discount of about 50% on quantities of about 8 kg per farmer, with beneficiary targeting through direct identification or tiered pricing. A pilot study was proposed to study costs and benefits of the two market segmentation approaches in distributing maize seed, and to determine optimal discount values and quantities.
Format: PDF
Language: English
Publisher: Academic Journals
Copyright: CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact CIMMYT-Knowledge-Center@cgiar.org indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purpose.
Type: Article
Country focus: Kenya
Region: Eastern Africa
Pages: 71-77
Issue: 3
Volume: 4
DOI: 10.5897/JDAE11.084
Keywords: Humanitarian Use Exemption
Publisher URI: https://academicjournals.org/journal/JDAE/article-abstract/EDC7ACF9272
Agrovoc: MARKET SEGMENTATION
Agrovoc: MAIZE
Agrovoc: POVERTY
Journal: Journal of Development and Agricultural Economics


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  • Socioeconomics
    Including topics such as farming systems, markets, impact & targeting, innovations, and GIS

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