Abstract

There is an increased demand for banana fruit and its processed products among both rural and urban populations. Value addition has the potential to reduce postharvest losses, increase crop productivity, and enhance crop income. Despite the promotion of banana value addition by government and non-governmental organizations, its utilization remains low in Kisii county, Kenya. There is a lack of information on the determinants of the utilization of banana value addition. Previous studies on determinants of crop value addition have primarily focused on tomatoes, mangoes, tubers and root crops, with limited emphasis on banana fruit. This knowledge gap necessitated the current study. A multi-stage sampling procedure was employed to select 201 respondents. Data were collected using semi-structured questionnaires and analyzed using descriptive and inferential statistics, as well as Cragg’s Double Hurdle model. The results revealed that banana value adders were involved in various activities such as flour milling (36%), slicing and drying (31%), cleaning, sorting and grading (26%), and crisps making (7%). In comparison to non-value adders, value adders were significantly younger, produced larger quantities of bananas, travelled longer distances to the market, received more training and extension visits, considered farming as their main occupation, owned smaller farm sizes, and the majority did not have access to credit. The decision to utilize banana value addition was significantly influenced by the total quantity of bananas produced, the type of roads, primary occupation, the number of training sessions and extension contacts, distance to the output market, group membership, and access to credit. The extent of value addition was influenced by extension contacts, type of roads, total quantity of bananas produced, and marital status (being married). The study recommends that socioeconomic and institutional factors influencing both the decision and extent of banana value addition should be considered when formulating and implementing policies aimed at promoting banana value addition.

Key words: Agripreneurs, banana, double hurdle, utilization, value addition.