Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Abstract

Inclusive business is regarded as having the potential to improve food security status in the Global South. Despite increased popularity among governments, donors and other development stakeholders, little is known about the approach’s impact on smallholder farmer communities. As such, the above-mentioned inclusive business promise on food security status largely rests on assumptions. This article scrutinises a case of smallholders’ French bean production for export market in Tharaka Nithi County, Kenya. The business model adopted in the initiative is termed inclusive and is intended to enhance food and nutrition security in the community. The empirical findings show that several contextual factors—in particular, access to land and water resources—limit the participation of the majority of farmers in the community. This leads to a notable level of exclusion. Moreover, the company risks negatively influencing local food security when food crops are substituted for an export crop that is not consumed locally. Results of this article demonstrate that while private sector-led development might contribute to higher economic productivity and access to food of better quality, it rarely changes the structural causes of food and nutrition insecurity, which are oftentimes related to access to production resources. We plead for increased scrutiny of the contextual factors when designing and implementing inclusive business models.

The Need for a Food Systems Approach in Smallholder Food and Nutrition Security Initiatives: Lessons from Inclusive Agribusiness in Smallholder Communities

“…In Tharaka Nithi county in Kenya, the French bean PPP initiative, funded by the Dutch government and a private Kenyan company, introduced the production of a high-value crop-French beans-via a contract farming arrangement. It was conceived as an ideal strategy to counter dwindling farm plot sizes and provide a solution to local food insecurity in a densely populated smallholder community [39]. Through this initiative, farmers are provided access to farm inputs in the form of seeds, agrochemicals and fertilizers, and extension services and markets.…”

“…These findings are mirrored to a certain extent by the French bean initiative in Kenya. To produce French beans, a water-intensive crop, a farmer must have access to water for irrigation [39]. There are only two types of irrigation infrastructure available in the community, which serve only 20% of the smallholder households, implying that only households within this group can exploit the opportunity provided by the initiative [39].…”

“…To produce French beans, a water-intensive crop, a farmer must have access to water for irrigation [39]. There are only two types of irrigation infrastructure available in the community, which serve only 20% of the smallholder households, implying that only households within this group can exploit the opportunity provided by the initiative [39]. Membership to the two irrigation schemes comes at the smallholder's own cost (Kshs.…”

“…In Tharaka Nithi county, Kenya, the French bean business is considered a failure, as it generally fails to have an impact on the participating households [39]. Owing to critical contextual factors, the crop performs extremely poorly.…”

“…This author contributed primarily to two of these studies: the French bean and mango cases. [39,40]. The Malt barley case constitutes the third study from Follow the Food [41].…”