Abstract:
This paper uses a translog cost function approach to study the farm-level
demand for poultry feed in Kenya. The study estimates the demand
elasticities of the three common types of poultry feed; mixed feed,
grain, and leafy vegetables. The estimated model was used to obtain
estimates of Marshallian demand elasticities for poultry feed in Kenya for
male-headed and female-headed households. The elasticities reported
can be used by researchers and policy analysts to evaluate policy effects
of changes in feed demand quantities within the livestock economy in
Kenya. Moreover, these parameters can provide more reliable estimates
of the total change in feed demand than relying on subjective measures
of elasticities. Furthermore, the results of this study are essential in
enhancing gender equitable policy formulation. Our findings show that
own price elasticities of demand for all the feed types are negative and
less than unit in absolute value for the sample of farmers surveyed,
indicating that the feed types are relatively inelastic. The cross-price
elasticities indicate that vegetables and grain are compliments while the
rest of the poultry feed types are substitutes. The results also show that
there are substantial gender differences in feed demand and elasticities
of feed demand with respect to feed prices.