Commercialization of Smallholder. Horticultural Farming in Kenya. Poverty, Gender, and Institutional Arrangements. Beatrice Wambui Muriithi

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1 Commercialization of Smallholder Horticultural Farming in Kenya Poverty, Gender, and Institutional Arrangements Beatrice Wambui Muriithi PL ACADEMIC RESEARCH

2 Table of Contents ListofTables 11 List of Figures 15 Acronyms and abbreviations 17 ChapterOne 19 1 General Introduction Background and research problem Relevance of the horticultural sub-sector in the Kenyan economy The role of small-scale producers in the horticultural sub-sector Market pathways for commercialization of vegetables in Kenya Institutional, policy, legal and regulatory frameworks governing the horticultural sub-sector Research methods Study area Sampling method Data collection 35 ChapterTwo 37 2 Determinants and Constraints of Smallholder Participation in the Commercialization of Horticulture: An Application of Panel Data to Vegetable Producers in Kenya Introduction Theoretical and empirical review of determinants of the commercialization of smallholder horticultural farming Theoretical and conceptual frameworks Data and descriptive analysis Descriptive characterization of market pathways and their participants Dynamics of smallholder vegetable marketing pathways Characteristics of smallholder vegetable growers 50 7

3 2.4.4 Measuring the extent of commercialization along different market pathways Empirical models Estimating the choice of market pathway and the extent of commercialization Estimating the dynamics of vegetable market participation decisions Econometric results Commercialization through the export market pathway Commercialization through the domestic market pathway Commercialization through the domestic and export markets jointly Dynamics of smallholder participation in the commercialization of horticulture Conclusions and policy implications 77 Appendix 2A: French bean export volumes 79 Appendix 2B: Characteristics of households by vegetable Output market 80 Chapter Three 83 3 Does Commercialization of Smallholder Horticulture Reduce Rural Poverty? Evidence from Household Panel Data in Kenya Introduction Literature review Analytical framework and estimation procedure Estimation procedure Estimation assuming that commercialization is exogenous Estimation Controlling for self-selection to participation in commercialization Data and descriptive statistics Economic activities of smallholder vegetable producers Demographic and socio-economic characteristics Farm household livelihood diversification 99 8

4 3.4.4 Asset ownership Poverty dynamics Econometric analysis Conclusions and policy implications 116 Appendix 3A: Construction of the household asset index 117 Appendix 3B: Füll model estimates 120 ChapterFour Commercialization of Smallholder Horticultural Farming: Gender Roles and Implications for Household Well-being in Kenya Introduction Theoretical underpinnings Data Descriptive analysis Household and farm characteristics Gender roles in the commercialization of vegetable farming Constraints hindering the participation of men and women in the commercialization of vegetable enterprises Empirical approaches and results Determinants of female participation in the commercialization of horticulture Female participation in commercial horticulture and household well-being Conclusions and policy implications 163 Chapter Five Commercialization of Smallholder High-Value Horticultural Farming: Institutional Arrangements, Transaction Costs and a Cost-Benefit Analysis of Kenya's Vegetable Producers Introduction Evolution of vegetable marketing arrangements in Kenya Literature review on the types, costs and benefits of marketing arrangements for high-value agricultural produce Conceptual framework 173 9

5 5.5 Theoretical foundation I' Cost-benefit analysis (CBA) Data and methods Results and discussion Marketing arrangements identified between French bean producers and traders Consideration of different costs and benefits Socio-economic characteristics of households by marketing arrangements Plot level financial CBA of marketing arrangements Financial cost-benefit analysis The relevance of French beans (export crop) enterprises relative to other farm enterprises Sensitivity analysis Conclusions and policy implications 205 Appendix 5A: Overview of Investment costs, revenues, operating costs and gross margins of French beans production for marketing Channels in Kenya (per acre, per year) 208 Appendix 5B: Sensitivity analysis (Meru and Nyeri districts) 214 Chapter Six Conclusions Synopsis Limitations of the study and suggestions for further research 218 References 221 Survey questionnaire 239 Abstract 275 Zusammenfassung

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