Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya

Abstract

Smallholder commercialization is central to international development policy and practice. As a result, several arrangements to foster market linkages are being implemented. Especially popular are farmers’ organizations, which are believed to be owned, controlled, and financed by smallholders. As such, their design is considered inclusive given every household in a community is theoretically allowed to become a member, and the governance and management structure encourage participatory decision-making. However, even in the context in which farmers’ organizations are actively promoted, a notable proportion of smallholders may not be able to engage in market-oriented production or may opt for the existing alternative marketing arrangements, as dictated by individual households’ socioeconomic characteristics. Focusing on the case of smallholder farming in Olenguruone, Nakuru county, Kenya, where a donor funded dairy farmers’ cooperative marketing arrangement is promoted alongside existing marketing opportunities, the present research investigated the factors that determine smallholders’ commercial farming orientation and marketing arrangements. It employed a case study approach, combining both quantitative and qualitative research methods for a more complete empirical inquiry. The findings demonstrate that irrespective of the external support provided through marketing opportunities such as farmer organizations, smallholders’ engagement in commercial farming and marketing is dictated by the socioeconomic attributes and market perceptions that are heterogeneous among households in a smallholder community.

Women's dual centrality in food security solutions: The need for a stronger gender lens in food systems' transformation

“…Among the primary reasons for this critical disparity is growing (global and local) social and economic inequality ( Dixon et al, 2007 ). Elsewhere, recent studies on inclusive agribusiness, the currently popular and dominant approach for improving smallholder livelihoods, food and nutrition security therein, show that not every farmer gets to participate, while those that do and manage to obtain better income it does not necessarily lead to improved food and nutrition security ( Wangu et al, 2020 ; Wangu et al, 2021 ; Gebru et al, 2019 ). On a different note, agriculture is associated with adverse environmental implications that undermine food production ( Steffen et al, 2015 ).…”

“…Indeed, studies have shown that in the same community there is a variation in smallholder households' socio-economic attributes with some households being relatively resource rich whilst others are significantly deprived. These conditions dictate who is able to participate and benefit from available socio-economic opportunities ( Wangu et al, 2020 ; Wangu et al, 2021 ; Johnson et al, 2016 ). Consequently, a variation in socio-economic outcomes, such as meeting their household food security, is to be expected.…”

“…Literature indicates that rural households spend a higher proportion of their income on food, they lack credit and savings, and they don't have social protection systems to fall back on ( Compton et al, 2010 ). Furthermore, it has been found that even in the context where smallholders (women therein) experience an increase in income, due to impoverished positions, a better food intake is not guaranteed given competing non-food needs ( Wangu et al, 2020 ; Wangu et al, 2021 ; van Westen et al, 2019 ).…”

“…Food security solutions should be based on women's dual experience in food security: their experience as food producers and their experience as food providers of the household. Furthermore, food security solutions need to take into account the variety of experiences and needs of women as they are not a homogenous group, which is still often presumed in smallholders' development interventions ( Wangu et al, 2021 ; Ros-Tonen et al, 2019 ; Grünenfelder and Schurr, 2015 ; Beyene et al, 2006 ).…”

Accommodating diverse actors and practices in the climate-development nexus : The case of Kenya’s dairy sector

“…The concerns for people and profit are related to the effects of climate change on livestock keepers in predominantly rainfed agricultural systems. In Kenya, dairy cattle populations constitute 25% of the total livestock population (Mbae et al, 2020), and are kept by an estimated 1.3 million households (Wangu et al, 2021). Smallholder producers, owning one to three dairy cows account for about 80% of the milk produced in Kenya, making dairy cattle an important livelihood asset for many rural residents (Makoni et al, 2013).…”