Commercialization of underutilized fruits: Baobab pulp supply response to price and non-price incentives in Kenya
2021
Kaimba, George K. | Mithöfer, Dagmar | Muendo, Kavoi M.
Baobab fruit pulp has been recognized globally for its high nutritional content and income generation opportunities. However, it is still underutilized, under-commercialized and neglected by research in Kenya. Our paper analyzes the responsiveness of baobab supply to price and non-price factors in Kenya using the restricted normalized translog profit function. We find that baobab collectors are responsive to both price and non-price incentives. Supply of baobab pulp and profits respond positively to baobab pulp price, and negatively to labor, transport and packaging input costs. Aside from the number of years’ experience selling baobab, non-price incentives such as other household incomes, number of baobab trees on a household’s farm, number of buyers known to the collector and number of children, show positive effects on baobab supply and profits. Input demands for labour, transport and packaging are also responsive to baobab prices, input prices and non-price factors. The findings of this study indicate that market development, rigorous baobab-related research and education, and the expansion of physical infrastructure are paramount in promoting baobab supply.
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