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.
Highlights
IntroductionAgribusiness is known for its environmental and socioeconomic drawbacks, including pollution, environmental degradation, and greenhouse gas emissions [4], as well as an unfair distribution of costs and benefits among chain actors grounded in structural power asymmetries [5,6,7]
Our study revealed that only a third of the farmer households had the chance and the willingness to participate in the studied initiative and that the vast majority of the households did not participate
Our analysis showed that the establishment of a partnership was determined more Our analysis showed that the establishment of a partnership was determined more by the company than it was a decision of the farmers
Summary
Agribusiness is known for its environmental and socioeconomic drawbacks, including pollution, environmental degradation, and greenhouse gas emissions [4], as well as an unfair distribution of costs and benefits among chain actors grounded in structural power asymmetries [5,6,7]
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