Discussion Paper No. 64 of 2006 on Participatory Prioritization of Issues in Smallholder Agricultural Commercialization in Kenya

Abstract

Participation in commercial agriculture has considerable potential for improving the livelihoods of many smallholder farmers. However, numerous constraints hamper their efforts in market-oriented production. This study uses a participatory Rapid Rural Appraisal (RRA) to assess the various constraints in the production and marketing of some important agricultural commodities. The study also uses the views of participants in various stakeholder workshops to understand the drivers of change in agri-food systems and opportunities in agricultural commercialization in one peri-urban and one rural area in Kenya. The findings demonstrate the relevance of participatory methodologies in investigating pertinent issues in agricultural commercialization. Special considerations for adaptation of the Rapid Rural Appraisal technique are noted. There is a gradual increase in commodity commercialization, especially in periurban areas, but fewer smallholder farmers actually participate in the markets directly due to a variety of constraints. There is limited value addition for most commodities at the village level. Furthermore, the importance of production and marketing constraints varies considerably with the mix of market access and market integration at the village level. Notably, areas with poor market access are characterized with poor quality and high cost of inputs, high transportation costs, and exploitation in commodity measurement, while those with high market integration mainly experience widespread on-farm theft, high market charges and unreliable market information.