Commercialization of Smallholder Horticultural Farming in Kenya Poverty, Gender, and Institutional Arrangements Beatrice Wambui Muriithi PL ACADEMIC RESEARCH
Table of Contents ListofTables 11 List of Figures 15 Acronyms and abbreviations 17 ChapterOne 19 1 General Introduction 19 1.1 Background and research problem 19 1.2 Relevance of the horticultural sub-sector in the Kenyan economy 22 1.3 The role of small-scale producers in the horticultural sub-sector 24 1.4 Market pathways for commercialization of vegetables in Kenya 25 1.5 Institutional, policy, legal and regulatory frameworks governing the horticultural sub-sector 28 1.6 Research methods 33 1.6.1 Study area 33 1.6.2 Sampling method 35 1.6.3 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 37 2.1 Introduction 37 2.2 Theoretical and empirical review of determinants of the commercialization of smallholder horticultural farming... 38 2.3 Theoretical and conceptual frameworks 41 2.4 Data and descriptive analysis 44 2.4.1 Descriptive characterization of market pathways and their participants 45 2.4.2 Dynamics of smallholder vegetable marketing pathways 47 2.4.3 Characteristics of smallholder vegetable growers 50 7
2.4.4 Measuring the extent of commercialization along different market pathways 54 2.5 Empirical models 57 2.5.1 Estimating the choice of market pathway and the extent of commercialization 57 2.5.2 Estimating the dynamics of vegetable market participation decisions 59 2.6 Econometric results 61 2.6.1 Commercialization through the export market pathway 61 2.6.2 Commercialization through the domestic market pathway 67 2.6.3 Commercialization through the domestic and export markets jointly 70 2.6.4 Dynamics of smallholder participation in the commercialization of horticulture 74 2.7 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 83 3.1 Introduction 83 3.2 Literature review 85 3.3 Analytical framework and estimation procedure 88 3.3.1 Estimation procedure 89 3.3.2 Estimation assuming that commercialization is exogenous 90 3.3.3 Estimation Controlling for self-selection to participation in commercialization 91 3.4 Data and descriptive statistics 93 3.4.1 Economic activities of smallholder vegetable producers 95 3.4.2 Demographic and socio-economic characteristics 96 3.4.3 Farm household livelihood diversification 99 8
3.4.4 Asset ownership 99 3.4.5 Poverty dynamics 103 3.5 Econometric analysis 106 3.6 Conclusions and policy implications 116 Appendix 3A: Construction of the household asset index 117 Appendix 3B: Füll model estimates 120 ChapterFour 127 4 Commercialization of Smallholder Horticultural Farming: Gender Roles and Implications for Household Well-being in Kenya 127 4.1 Introduction 127 4.2 Theoretical underpinnings 130 4.3 Data 132 4.4 Descriptive analysis 133 4.4.1 Household and farm characteristics 133 4.4.2 Gender roles in the commercialization of vegetable farming 138 4.4.3 Constraints hindering the participation of men and women in the commercialization of vegetable enterprises 150 4.5 Empirical approaches and results 152 4.5.1 Determinants of female participation in the commercialization of horticulture 156 4.5.2 Female participation in commercial horticulture and household well-being 160 4.6 Conclusions and policy implications 163 Chapter Five 167 5 Commercialization of Smallholder High-Value Horticultural Farming: Institutional Arrangements, Transaction Costs and a Cost-Benefit Analysis of Kenya's Vegetable Producers 167 5.1 Introduction 167 5.2 Evolution of vegetable marketing arrangements in Kenya 168 5.3 Literature review on the types, costs and benefits of marketing arrangements for high-value agricultural produce 170 5.4 Conceptual framework 173 9
5.5 Theoretical foundation I' 5 5.6 Cost-benefit analysis (CBA) 176 5.7 Data and methods 177 5.8 Results and discussion 178 5.8.1 Marketing arrangements identified between French bean producers and traders 178 5.8.2 Consideration of different costs and benefits 184 5.8.3 Socio-economic characteristics of households by marketing arrangements 188 5.8.4 Plot level financial CBA of marketing arrangements... 190 5.8.5 Financial cost-benefit analysis 196 5.8.6 The relevance of French beans (export crop) enterprises relative to other farm enterprises 201 5.8.7 Sensitivity analysis 203 5.9 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 215 6. Conclusions 215 6.1 Synopsis 215 6.2 Limitations of the study and suggestions for further research 218 References 221 Survey questionnaire 239 Abstract 275 Zusammenfassung 277 10