A Survey of the Extent of Vertical Integration in Asian Vegetables Exporting Businesses in Kenya
Abstract
The Kenya horticultural sector has an annual growth rate of between 15-20% and the industry is the
fastest growing agricultural sub sector in Kenya contributing close to 13% GDP. Despite the recent
overall decline in growth of the Agricultural sector in Kenya, the horticultural sector has continued
to show a positive performance with regard to productivity, marketing and employment. Total direct
and in direct employment is about 2 million.
With the introduction of stringent quality standards by the EU which happens to be the major
market, the exporters have been setting up their own farms in order to guarantee the standards.
However, they still have to rely on the small-scale farmers who most often than not farm in less than
an acre plot and contribute to 80% of the total horticultural produce for export. Unfortunately, the
relationship between the exporters and the farmers is wanting due to; exploitation where by the
farmers are offered low prices, opportunistic middlemen who encourage farmers to side-sell and
inaccessibility to approved inputs as well as inadequate technical knowledge by the farmers to
produce the right quality and quantity. Despite these challenges, the sector has grown due to
development of innovate and sustainable vertical relationships. -
This study therefore examined the different structures and vertical relationships that exist amongst
the Kenya Companies exporting vegetables of Asian origin in order to explain the extent of the
integration. It analyzes them and concludes by outlining the factors that influence the extent of the
Integration.The research also evokes further topics for research related to this area of study.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
A Management Research Project submitted in partial fulfillment of the requirements
for the degree of Masters of Business Administration (MBA).
University of Nairobi.