366 JOSHUA ARIGA AND T. S. JAYNE Table 13.9 Mean distance from farm to maize buyer in Kenya, 1997–2007
Number of households
Zone selling maize
Eastern Lowlands 1997 2004 2007
Western Lowlands 1997 2004 2007
Western Transitional 1997 2004 2007
High-Potential Maize Zone 1997 2004 2007
Western Highlands 1997 2004 2007
Central Highlands 1997 2004 2007
Marginal Rain Shadow 1997 2004 2007
58 94 88
21 48 50
41
108 90
230 313 312
40
116 105
82 85
125 1
15 24
Private
Kilometers from farm to point of maize sale, by buyer type Millers/
trader NCPB processors Cooperative Consumers
6.55 — 3.15 — 1.62
1.83 — 2.48 — 1.04 —
0.71 — 0.25 — 0.07 —
1.80 1.13 0.40
12.77 18.57 13.50
3.15 — 2.62 — 1.81 —
0.94
— —
0.00 — —
— —
— — —
29.88 9.48 9.75
— — —
1.32 — 19.33 0.42
0.00 — 0.25
— — 0.71 — 0.00 —
— —
24.00 0.00
— — —
— — —
—
4.67 —
2.00
32.00 —
— — —
— — —
— — —
1.27 1.46 1.28
1.00 2.50 0.26
0.00 0.34 1.55
0.59 2.88 2.69
2.70 2.24 0.96
2.07 0.26 0.50
—
0.00 0.20
Source: Tegemeo Institute of Agricultural Policy and Development / Michigan State University (1997, 2000, 2004, 2007). Notes: NCPB means National Cereals and Produce Board; — means no data were available.
The Reduction in Marketing Margins between Maize Grain and Maize Meal Prices
Figure 13.7 shows that since the inception of the market reforms in the 1990s, the marketing margin between wholesale grain prices and retail maize meal prices has declined substantially. Retail maize meal prices have been declining at a trend rate of $0.57 per year (statistically significant at the 1 percent level), while wholesale prices in Nairobi have been declining at only $0.11 per year (a trend not statistically different from zero). Increased competition at the milling and retailing stages of the maize value chain has greatly benefited low-income consumers in Kenya (Jayne and Argwings-Kodhek 1997; Ariga and Jayne 2008).