Abstract:
Contract farming in sugarcane production has been practised in a number of major sugarcane growing zones around the world. Whereas it is practised under different models and its benefits realized by both contracting parties, its effects on sugarcane production has not been comprehensively analysed. In Mumias Sub-County, contract farming is one of the significant challenges of sugarcane production especially with regard to provision of credit facilities, post-harvest and farm inputs. The study had the following objectives: (1) to establish the contribution of contract price and credit on sugarcane production, to (2) determine the effects of provision of farm inputs on sugarcane production and to (3) examine the effects of post harvesting processes on sugarcane production. It was supported by the theory of governance costs and transaction costs.It utilised descriptive research design in the collection of both qualitative and quantitative data. Data collection used both primary and secondary means in Mumias Sub-County and Mumias Sugar Company. The study used open and closed questionnaires, interview schedule and focused group discussion.Also, purposive sampling was used to select contracted cane farmers of Mumias Sub-County. In addition, the research used purposive sampling to identify the nearest contracted farmers who have not been in cane production for at least ten years and field assistants from Mumias Sugar Company. Data obtained through interview guide, the questionnaires and the focus group discussions which was analysed using both qualitative and quantitative methods and later presented in tables and charts (frequency and percentages). From the findings; contribution of price and credit on contractual sugarcane production influenced sugarcane production both in the context of quality and quantity of cane, provision of farm inputs on sugarcane production was found that farmers tend to abuse farm inputs by selling them in order to settle demands for their livelihoods hence affecting the sugarcane production negatively, and the effects of post harvesting processes on contractual sugarcane production was found that some farmers still experienced some delays in payment after cane supply to the miller thus not meeting their needs on time.Information generated from the study will be of significance to the Kenyan government in formulating policies that favour farmers in the sugarcane industry hence improving on sugarcane production. Lastly, the generated information will tend improve the livelihoods of the farmers through high incomes realised from the sugarcane production and also, the information is aimed to improve agricultural sector at large since it is the backbone of Kenya’s economy.
