IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i19p10937-d648206.html
   My bibliography  Save this article

How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya

Author

Listed:
  • Celina Schelle

    (Department of Sustainability and Environmental Governance, Faculty of Environment and Natural Resources, University of Freiburg, 79106 Freiburg, Germany)

  • Benno Pokorny

    (Faculty of Environment and Natural Resources, University of Freiburg, 79106 Freiburg, Germany)

Abstract

Inclusive agribusiness considers social and environmental goals in global value chains in agribusiness. However, not all small-scale farmers may be able to benefit from such arrangements. To find out about possible reasons for exclusion, this study investigates an agribusiness initiative in coastal Kenya employing organic contract farming by applying a mixed-methods research design based on household sampling of the recruitment procedure, as well as interviews with the farmers and company representatives. The findings suggest that sustainability standards may impede small-scale farmers’ participation in agribusiness. Specifically, the implementation of organic certification, essential for the functionality of the company business models, contributes most to small-scale farmer exclusion. Companies, clients, and, most importantly, certifiers should be aware of this problem and look for appropriate measures to overcome this unwanted effect of standard-setting in inclusive businesses.

Suggested Citation

  • Celina Schelle & Benno Pokorny, 2021. "How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10937-:d:648206
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/19/10937/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/19/10937/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Verena Bitzer & Ralph Hamann, 2015. "The Business of Social and Environmental Innovation," Springer Books, in: Verena Bitzer & Ralph Hamann & Martin Hall & Eliada Wosu Griffin-EL (ed.), The Business of Social and Environmental Innovation, edition 127, chapter 0, pages 3-24, Springer.
    2. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    3. Herzfeld, Thomas & Jongeneel, Roel, 2012. "Why do farmers behave as they do? Understanding compliance with rural, agricultural, and food attribute standards," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(1), pages 250-260.
    4. Masakure, Oliver & Henson, Spencer, 2005. "Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe," World Development, Elsevier, vol. 33(10), pages 1721-1733, October.
    5. Kersting, Sarah & Wollni, Meike, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," Food Policy, Elsevier, vol. 37(4), pages 452-462.
    6. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    7. Wollni, Meike & Andersson, Camilla, 2014. "Spatial patterns of organic agriculture adoption: Evidence from Honduras," Ecological Economics, Elsevier, vol. 97(C), pages 120-128.
    8. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    9. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    10. McDermott, Constance L. & Irland, Lloyd C. & Pacheco, Pablo, 2015. "Forest certification and legality initiatives in the Brazilian Amazon: Lessons for effective and equitable forest governance," Forest Policy and Economics, Elsevier, vol. 50(C), pages 134-142.
    11. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    12. Nolte, Kerstin & Ostermeier, Martin, 2017. "Labour Market Effects of Large-Scale Agricultural Investment: Conceptual Considerations and Estimated Employment Effects," World Development, Elsevier, vol. 98(C), pages 430-446.
    13. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    14. Ponte, Stefano, 2008. "Greener than Thou: The Political Economy of Fish Ecolabeling and Its Local Manifestations in South Africa," World Development, Elsevier, vol. 36(1), pages 159-175, January.
    15. Seelos, Christian & Mair, Johanna, 2005. "Social entrepreneurship: Creating new business models to serve the poor," Business Horizons, Elsevier, vol. 48(3), pages 241-246.
    16. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    17. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 361-371, May.
    18. Rehber, Erkan, 2018. "Contract Farming in Practice: An Overview," Research Reports 290069, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    19. Oelofse, Myles & Høgh-Jensen, Henning & Abreu, Lucimar S. & Almeida, Gustavo F. & Hui, Qiao Yu & Sultan, Tursinbek & de Neergaard, Andreas, 2010. "Certified organic agriculture in China and Brazil: Market accessibility and outcomes following adoption," Ecological Economics, Elsevier, vol. 69(9), pages 1785-1793, July.
    20. W.O. Chamberlain & W. Anseeuw, 2017. "Contract Farming as Part of a Multi-Instrument Inclusive Business Structure: A Theoretical Analysis," Agrekon, Taylor & Francis Journals, vol. 56(2), pages 158-172, April.
    21. Ayuya, Oscar I. & Gido, Eric O. & Bett, Hillary K. & Lagat, Job K. & Kahi, Alexander K. & Bauer, Siegfried, 2015. "Effect of Certified Organic Production Systems on Poverty among Smallholder Farmers: Empirical Evidence from Kenya," World Development, Elsevier, vol. 67(C), pages 27-37.
    22. Wytske O Chamberlain & Ward Anseeuw, 2019. "Inclusiveness revisited: Assessing inclusive businesses in South African agriculture," Development Southern Africa, Taylor & Francis Journals, vol. 36(5), pages 600-615, September.
    23. Lalani, Baqir & Dorward, Peter & Holloway, Garth & Wauters, Erwin, 2016. "Smallholder farmers' motivations for using Conservation Agriculture and the roles of yield, labour and soil fertility in decision making," Agricultural Systems, Elsevier, vol. 146(C), pages 80-90.
    24. Marcello Stanco & Marco Lerro, 2020. "Consumers’ Preferences for and Perception of CSR Initiatives in the Wine Sector," Sustainability, MDPI, vol. 12(13), pages 1-13, June.
    25. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
    26. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    27. Swain, Braja Bandhu, 2016. "Contract Farming and Indian Agriculture: Can Agribusiness Help the Small Farmer?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 71(3), September.
    28. Sukhpal Singh, 2002. "Multi-national corporations and agricultural development: a study of contract farming in the Indian Punjab," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 181-194.
    29. Maertens, Miet & Swinnen, Johan F.M., 2006. "Standards as Barriers and Catalysts for Trade and Poverty Reduction," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25772, International Association of Agricultural Economists.
    30. Stringer, Randy & Sang, Naiquan & Croppenstedt, André, 2009. "Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China," World Development, Elsevier, vol. 37(11), pages 1773-1780, November.
    31. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    32. Meemken, Eva-Marie & Veettil, Prakashan Chellattan & Qaim, Matin, 2017. "Toward Improving the Design of Sustainability Standards—A Gendered Analysis of Farmers’ Preferences," World Development, Elsevier, vol. 99(C), pages 285-298.
    33. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    34. Kebede Manjur Gebru & Maggi Leung & Crelis Rammelt & Annelies Zoomers & Guus van Westen, 2019. "Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia," Sustainability, MDPI, vol. 11(3), pages 1-28, January.
    35. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
    36. Mirjam A F Ros-Tonen & Yves-Pierre Benoît Van Leynseele & Anna Laven & Terry Sunderland, 2015. "Landscapes of Social Inclusion: Inclusive Value-Chain Collaboration Through the Lenses of Food Sovereignty and Landscape Governance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(4), pages 523-540, September.
    37. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    38. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    39. Jason Moyer-Lee & Martin Prowse, 2015. "How Traceability is Restructuring Malawi's Tobacco Industry," Development Policy Review, Overseas Development Institute, vol. 33(2), pages 159-174, March.
    40. Fischer, Sabine & Wollni, Meike, 2018. "The role of farmers’ trust, risk and time preferences for contract choices: Experimental evidence from the Ghanaian pineapple sector," Food Policy, Elsevier, vol. 81(C), pages 67-81.
    41. Wuepper, David & Sauer, Johannes, 2016. "Explaining the performance of contract farming in Ghana: The role of self-efficacy and social capital," Food Policy, Elsevier, vol. 62(C), pages 11-27.
    42. Cecilia Navarra, 2019. "Contract Farming in Mozambique: Implications for Gender Inequalities Within and Across Rural Households," South African Journal of Economics, Economic Society of South Africa, vol. 87(2), pages 228-252, June.
    43. Marc F. Bellemare, 2015. "Rising Food Prices, Food Price Volatility, and Social Unrest," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 1-21.
    44. Schoemaker, Paul J H, 1982. "The Expected Utility Model: Its Variants, Purposes, Evidence and Limitations," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 529-563, June.
    45. Hope C. Michelson, 2017. "Influence of Neighbor Experience and Exit on Small Farmer Market Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 952-970.
    46. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    47. Meijerink, Gerdien & Bulte, Erwin & Alemu, Dawit, 2014. "Formal institutions and social capital in value chains: The case of the Ethiopian Commodity Exchange," Food Policy, Elsevier, vol. 49(P1), pages 1-12.
    48. James Wangu & Ellen Mangnus & A.C.M. (Guus) van Westen, 2020. "Limitations of Inclusive Agribusiness in Contributing to Food and Nutrition Security in a Smallholder Community. A Case of Mango Initiative in Makueni County, Kenya," Sustainability, MDPI, vol. 12(14), pages 1-23, July.
    49. Kebede Manjur Gebru & Crelis Rammelt & Maggi Leung & Annelies Zoomers & Guus Westen, 2019. "Inclusive malt barley business and household food security in Lay Gayint district of northern Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 953-966, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mai Chiem Tuyen & Prapinwadee Sirisupluxana & Isriya Bunyasiri & Pham Xuan Hung, 2022. "Stakeholders’ Preferences towards Contract Attributes: Evidence from Rice Production in Vietnam," Sustainability, MDPI, vol. 14(6), pages 1-21, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    2. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    3. Viet Hoang, 2021. "Impact of Contract Farming on Farmers’ Income in the Food Value Chain: A Theoretical Analysis and Empirical Study in Vietnam," Agriculture, MDPI, vol. 11(8), pages 1-16, August.
    4. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    5. Ruml, Anette & Qaim, Matin, 2020. "Effects of marketing contracts and resource-providing contracts in the African small farm sector: Insights from oil palm production in Ghana," World Development, Elsevier, vol. 136(C).
    6. George Malindretos & Eleni Sardianou & Maria Briana, 2023. "Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    7. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    8. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    9. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
    10. Marc F. Bellemare, 2018. "Contract farming: opportunity cost and trade†offs," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 279-288, May.
    11. Richard Kwasi Bannor & Yaw Gyekye, 2022. "Unpacking The Nexus Between Broiler Contract Farming and Its Impact in Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2759-2786, December.
    12. Ola, Oreoluwa & Menapace, Luisa, 2020. "Smallholders' perceptions and preferences for market attributes promoting sustained participation in modern agricultural value chains," Food Policy, Elsevier, vol. 97(C).
    13. Schoneveld, George C. & Weng, Xiaoxue, 2023. "Smallholder value creation in agrifood chains: Value network approach," Land Use Policy, Elsevier, vol. 131(C).
    14. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    15. Ashish Aman Sinha & Hari Charan Behera & Ajit Kumar Behura & Braja Bandhu Swain, 2021. "Land Allocation Choice in Both Contract and Non-Contract Farming: A Study of Potato Growers in West Bengal, India," SAGE Open, , vol. 11(3), pages 21582440211, September.
    16. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    17. Laura Enthoven & Goedele Van den Broeck, 2021. "Promoting Food Safety in Local Value Chains: The Case of Vegetables in Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    18. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and poverty: evidence from different export schemes in Tanzania," GlobalFood Discussion Papers 262583, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    19. Soullier, Guillaume & Moustier, Paule, 2018. "Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal," Food Policy, Elsevier, vol. 79(C), pages 179-198.
    20. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10937-:d:648206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.