Codes of Conduct and Marketing Strategies in Kenya’s Horticultural Sector

The global demand for product quality and safety in Western European markets has motivated rapid growth of production and marketing codes of conduct between business partners. However, though the Kenya Horticultural Crops Development Authority’s code of conduct on contractual guidelines has promoted business to farm business (B2B) relationships between exporters and smallholders, the relationships have received little empirical analysis. This paper uses case analysis based on strategic marketing framework to examine the B2B’s purpose, target and competitive, growth, promotion, distribution, and pricing strategies. The analysis reveals that the B2B strategies are based on supply chain governance constructs: written and verbal contracts. The purpose of the contracts is to manage procurement of high quality and safe produce which in itself is contingent on the European Union market served. On targets, written contracts seem efficient with organized producers and verbal contracts with independent producers. As competitive edges, written contracts are orientated toward differentiation strategy and verbal contracts, low-cost strategy. Growth in written contracts is through market penetration and diversification in verbal contracts. However, sharp differences exist on distributional, promotional and pricing strategies. Keywords: code of conduct, contracts, marketing strategies, horticulture, Keny

Incentives, Transaction Costs and Social Capital Considerations in Determination of Contract Duration in the Kenyan Smallholder Horticultural Sub-Sector

A multinomial regression is used on data from a survey of French bean smallholders to analyse duration of business to farm business relations in horticulture farming conditional on incentives, transaction cost minimization and social capital. Average marginal effects return a higher probability of short duration given a higher number of farmer neighbours and farms located further from the village indicating dependence on social networks and avoidance of competition for farm supplies. The probability of long duration is higher if farmers have access to credit and prior information on prices, large farm area under beans and contractual experience, if selected to farm beans and if a farmer knows a higher number of farmers selling to the same buyer, if a farmer uses a supply contract and the farm is further from the source of irrigation water. This suggests that long duration exchanges are based on high powered incentives, transaction cost reduction, social capital and control of quality supplies. It is concluded that the success of production and market intervention programs in the smallholder sector will require buyers to exploit social networks, use production and output incentives and build on existing farmer expertise. Keywords: contract duration; incentives; transaction costs; social capital; smallholders; Keny

ANALYSIS OF MARKET PERFORMANCE: A CASE OF ‘OMENA’ FISH IN SELECTED OUTLETS IN KENYA

The role and contribution of the fisheries sub-sector in Kenya cannot be underestimated. In particular, the contribution of Rastrienebola Argentea, commonly referred to as Omena, or Dagaa is increasingly being recognized and appreciated by several Government institutions and Non-Governmental organizations. Omena production is valued at 200 million dollars while its trade supports more than 2 million livelihoods. Different interventions by the government and the Non-Governmental organizations have resulted to increased production of Omena fish. However, increased production alone is not enough to effectively develop this industry. Information on the marketing functions and the efficiency with which these functions are carried out is lacking. In addition, distribution of costs and benefits along the Omena marketing chain is not known while fluctuations in supply affect price transmission between different markets. The main objective of this study was thus to assess the performance of Omena marketing in Kenya. The specific objectives of the study included: assessing the effectiveness of the Omena marketing channels; evaluating the price spreads along the different marketing channels; and to determine whether the spatially separated markets for Omena are integrated. Primary data was collected in two purposively identified regional markets in Kenya (i.e. Kisumu and Nakuru) while additional secondary data from the Nairobi region was included only for the purposes of analyzing market integration. Selection of markets was based on whether the markets are deficit or surplus regions for Omena. A multistage sampling procedure resulted to a total of 43 fishermen; 42 small scale processors; 20 wholesalers; 31 retailers; 32 domestic consumers; and 7 industrial consumers making a grand total number of 175 respondents. Questionnaires were adopted as the major tools of data collection using one-on-one interviews. To analyze the resultant data, the study utilized gross margin analysis and co-integration modeling. Results indicate that Omena marketing channels are to a large degree effective as it regards to meeting the consumption needs. However, results also indicated that longer marketing channels resulted not only to high costs and thus high retail prices; but also to lower returns to the fishermen. Further, the study identified that there is no integration amongst Omena markets in Kisumu and Nakuru and that a weak degree of integration existed between Kisumu and Nairobi. Information generated by this study is important in guiding policy makers to identify points of interventions as well as in designing effective and efficient Omena marketing channels.Marketing,

Export Market Linkage via Gentleman's Agreement: Evidence from French Bean Marketing in Kenya

"Gentleman's agreements" involving handshakes or promissory market access possibilities through brokers and middlemen have enabled most small farmers in Kenya to export an extensive array of fruits and vegetables. However, despite rapid expansion into these forms of market linkages, there has been a dearth of empirical information regarding the factors that such marketers consider when linking small farmers to the market. This paper uses data from a 2001 French bean farmers survey conducted in Mwea Tebere Central Kenya to evaluate household and infrastructural factors determining informal linkages for French bean marketing. Logit estimates show that irrigation equipment is a prerequisite for linkage, farm localities further from central crop collection centres and close proximity of farms to source of irrigation waters, and poor accessibility of large farms preferred by brokers in linking small farmers. The results lend credence to the importance of brokers and middlemen as an emerging institution in linking small farmers to export markets in rural regions that have poor infrastructures e.g. roads.verbal agreement, logit, French beans exports, small farmers, linkage, brokers and middlemen, International Relations/Trade,

Price Formation in the Presence of International Private Food Quality Standard: The case of Kenyan French beans

Private food quality assurance standards especially GlobalGAP now dominate Western food retailers’ markets. GlobalGAP defines market access condition for producers requiring farm investments, traceability and certification. Despite quality, safety, health, welfare and environmental benefits, compliance is costly for smallholders yet a price premium is unobservable. Alternative markets mitigate quality and safety risks through contracts whose use and frequency of renewal is unexplained. Using data from French bean producers, three essays are presented: analysis of GlobalGAP adoption, its effect on producer prices, use and frequency of contracts renewal. In the first essay, results show that producer price, many producers in a village and short monitored supply chains reduce the likelihood but protective gear, collective organizations and extension services increase the likelihood of adoption. This means that price incentive, independent and monitored production constrains adoption but farm assets, farmer capacity and non-monetary incentives enhance adoption. In the second essay, the econometric model shows that GlobalGAP certification, use of supply contracts, direct procurement by exporters, and the size of markets in a village, have a positive effect on producer prices. Organized producers receive significantly lower prices. The GlobalGAP premium is not very large or constant over one season and is less important than in supply contracts and direct procurement. More buyers in a given village, non-switching selling to one buyer and better roads are found to increase prices paid to producers. The third essay finds that higher producer prices and many producers in a village are associated with oral contracts while extension, group size, post primary education and contract seasons with a buyer differentiate written contracts. Further, the results show that contract renewals increase with price if it is known at planting, spot cash payments, distance to irrigation water source, producer-exporter market linkage, sales receipting and traceability but reduce with the number of buyers in a village. The results indicate that alternative markets depend strongly on oral contracts while contract renewal is based more on satisfaction, trust, switching costs and competition. Overall, producer groups and non-monetary incentives may be a more effective way to co-opt smallholders in private quality and safety standards. Beside other benefits, there is a GlobalGAP certification premium though not very large. Finally, alternative markets exist for smallholders without GlobalGAP certification through supply contracts.Private Qualitätsstandards für Nahrungsmittel, insbesondere GlobalGAP, dominieren mittlerweile den westlichen Lebensmitteleinzelhandel. Die Anforderungen von GlobalGAP an die Produzenten beinhalten Investitionen in die landwirtschaftlichen Betriebe, Rückverfolgbarkeit und eine Zertifizierung. Trotz des Nutzens hinsichtlich Qualität, Sicherheit, Gesundheit, Wohlfahrt und Umwelt ist die Erfüllung der Anforderungen kostspielig für Kleinbetriebe und ein Preisaufschlag ist nicht beobachtbar. Auf alternativen Absatzmärkten werden Qualitäts- und Sicherheitsrisiken mittels Verträgen reduziert, wobei aber Nutzung und Häufigkeit der Vertragsverlängerungen bis jetzt unerklärt sind. Die drei Arbeiten, die auf Daten von Produzenten für grüne Bohnen basieren, untersuchen neben der Umsetzung von GlobalGAP den Effekt von GlobalGAP auf die Erzeugerpreise, sowie die Nutzung und Häufigkeit von Vertragsverlängerungen. Die Ergebnisse der ersten Arbeit zeigen, dass die Wahrscheinlichkeit der Umsetzung von GlobalGAP mit steigenden Erzeugerpreisen, der Zunahme der Anzahl der Produzenten in einem Dorf und einer kurzen, überwachten Versorgungsketten sinkt. Sie steigt aber, wenn Schutzvorrichtungen, genossenschaftliche Organisationen und Beratungsstellen vorhanden sind. Das bedeutet, dass Preisanreize, eine unabhängige und überwachte Produktion die Umsetzung behindert, jedoch landwirtschaftliche Produktionsmittel, Kompetenzentwicklung der Landwirte und nicht-monetäre Anreize die Umsetzung unterstützen. Das in der zweiten Arbeit geschätzte ökonometrische Modell zeigt, dass die GlobalGAP Zertifizierung, der Gebrauch von Lieferverträgen, Direktbeschaffung durch Exporteure und die Größe des Marktes eines Dorfes einen positiven Effekt auf die Erzeugerpreise haben. Organisierte Erzeuger erzielen signifikant niedrigere Preise. Der GlobalGAP Preisaufschlag ist nicht sehr groß oder konstant über eine Saison. Auch ist er weniger wichtig in Lieferverträgen und bei der Direktbeschaffung. Es wird festgestellt, dass mehr Käufer in einem gegebenen Dorf, der nicht-wechselnde Verkauf an nur einen Käufer und bessere Straßenverhältnisse die Erzeugerpreise steigern. Die Ergebnisse der dritten Arbeit sind, dass mündliche Verträge mit höheren Erzeugerpreisen und vielen Erzeuger in einem Dorf assoziert sind, während Beratung, Gruppengröße, postprimäre Bildung und Vertragslaufzeit schriftliche Verträge differenzieren. Die Ergebnisse zeigen außerdem, dass Vertragsverlängerungen mit den Preisen, wenn diese zum Zeitpunkt der Pflanzung bekannt sind, den Spotmarktpreisen, der Entfernung zur Quelle für Bewässerungswasser, der Produzenten-Exporteur Marktverbindung, sowie der Möglichkeit des Erhalts von Bestätigungen und der Nachverfolgbarkeit von Verkäufen zunehmen. Andererseits nehmen sie ab, wenn die Anzahl der Käufer in einem Dorf steigt. Diese Ergebnisse deuten an, dass alternative Absatzmärkte stark von mündlichen Verträgen abhängen, wohingegen die Vertragsverlängerungen mehr auf Zufriedenstellung, Vertrauen, Wechselkosten und Wettbewerb basiert. Alles in allem betrachtet, können Erzeugergruppen und nicht-monetäre Anreize effektiver sein, um Kleinbetriebe in private Qualitäts- und Sicherheitsstandards zu kooptieren. Neben anderen Vorteilen gibt es einen GlobalGAP Preisaufschlag, auch wenn dieser nicht sehr groß ist. Letztlich existieren alternative Absatzmärkte für Kleinbetriebe ohne GlobalGAP Zertifizierung durch Lieferverträge

Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing

The proliferation of private quality and assurance schemes in international trade is defining market access in high value chains. The prime concern for small-scale producers is whether price premiums are realizable due to compliance. Using French beans marketing, the authors find that GlobalGAP certification, produce traceability, number of suppliers, competition for supplies, direct procurement, a good road network, and supply contracts have positive farmgate price effects for smallholders. Potential policy implications are drawn

LEFT BEHIND: MONITORING THE SOCIAL INCLUSION OF YOUNG AUSTRALIANS WITH SELF- REPORTED LONG TERM HEALTH CONDITIONS, IMPAIRMENTS OR DISABILITIES 2001 - 2009

Adolescents and young adults with disabilities are at heightened risk of social exclusion. Exclusion leads to poor outcomes in adulthood which in turn affects individuals’ health and wellbeing and that of their families and society through loss of productive engagement in their communities. Australia’s Social Inclusion Indicators Framework provides indices in domains of participation, resources and multiple and entrenched disadvantage to monitor and report on social inclusion. The Household Income and Labour Dynamics in Australia survey provides data over time on households in Australia. Using these tools we report here on the extent of social inclusion/exclusion of young disabled Australians over the past decade. Relative to their non-disabled peers, young disabled Australians are significantly less likely to do well on participation indicators.Centre for Disability Research and Polic

IL-6 is Upregulated in Late-Stage Disease in Monkeys Experimentally Infected with Trypanosoma brucei rhodesiense

The management of human African trypanosomiasis (HAT) is constrained by lack of simple-to-use diagnostic, staging, and treatment tools. The search for novel biomarkers is, therefore, essential in the fight against HAT. The current study aimed at investigating the potential of IL-6 as an adjunct parameter for HAT stage determination in vervet monkey model. Four adult vervet monkeys (Chlorocebus aethiops) were experimentally infected with Trypanosoma brucei rhodesiense and treated subcuratively at 28 days after infection (dpi) to induce late stage disease. Three noninfected monkeys formed the control group. Cerebrospinal fluid (CSF) and blood samples were obtained at weekly intervals and assessed for various biological parameters. A typical HAT-like infection was observed. The late stage was characterized by significant (P<0.05) elevation of CSF IL-6, white blood cell count, and total protein starting 35 dpi with peak levels of these parameters coinciding with relapse parasitaemia. Brain immunohistochemical staining revealed an increase in brain glial fibrillary acidic protein expression indicative of reactive astrogliosis in infected animals which were euthanized in late-stage disease. The elevation of IL-6 in CSF which accompanied other HAT biomarkers indicates onset of parasite neuroinvasion and show potential for use as an adjunct late-stage disease biomarker in the Rhodesian sleeping sickness

Computational Analysis of Some Enzymes Involved in Synthesis of Secondary Metabolites in Camellia Sinensis

Tea is one of the most popular beverages worldwide, native to Southeast Asia but currently cultivated in over 35 countries. Studies on its chemical composition reveal that polyphenol metabolites account for 25% to 35% of the total dry weight. Tea has many health benefits owing to secondary metabolites whose level of expression in various tea clones determine tea flavor. The flavor (taste and aroma) and the color of processed tea are used to assess its quality and therefore a detailed analysis of key enzymes involved in the synthesis of secondary metabolites is necessary.  Enzyme PAL (phenylalanine ammonia-lyase) a key enzyme in the phenylpropanoid pathway, playing an important role in the plant development and defense. C4H (cinnamte-4-hydroxylse) an important enzyme in allocating significant amounts of carbon from phenylalanine into the biosynthesis of several metabolites, It maintains activities of the metabolic flux for the operation of the flavanoid pathway. 4CL (4-coumarate: COA ligase) the last enzyme in the general phenylpropanoid pathway that provides precursors for the biosynthesis of a large variety of plant natural products like COA thiol esters of 4-coumarate and other hydroxycinnamate. FLS (flavonol synthase) a key enzyme in flavonol synthesisthat determines the final content of flavonols which play an important role in defense related functions and as potent antioxidants. ANS (anthocyanidin synthase) an enzyme in the biosynthetic pathway to anthocyanin. This study employed a computational approach in the analysis of some of these enzymes to gain insight into the mechanism of synthesis of these bioactive secondary metabolites. Biological databases were used to retrieve amino acid sequences of these key enzymes. Consensus conserved regions in these sequences were identified from highly identical homologs which were useful in modeling the enzymes' three dimensional structures.  A total of 5 key enzymes were analyzed and pockets and cavities in their structures; hence the putative substrate binding sites determined, which gave insight into the enzymes-substrate as well as enzyme cofactor interactions. The preferred orientations of the interactions between substrates and/or co-factors with the enzymes were also simulated through molecular docking.  Analysis of these enzymes revealed unique enzyme structures and very specific substrate and co-factor preference. This analysis offers a platform for optimization of selective expression of these key enzymes through gene expression assays that can potentially alter the quality yield of tea clones. Keywords: camellia sinensis, Secondary metabolites, Conserved regions, Pockets and cavities, Molecular dockin

Usage of Agricultural Intensification Practices by Smallholder Farmers in Kenyan Rapidly Developing Dry Areas

Developing countries, Kenya included are mostly affected by food problems and poverty as a result of high dependence on agriculture. In Kenya agriculture contributes to 27.3% of the Gross Domestic Product. Agriculture in Kenya is dominated by smallholder farmers, whose production is hampered by climate variability, declining land sizes and low agricultural technologies. Agricultural intensification is aimed at solving the problem of low agricultural productivity and poverty through increasing farm output per unit land area. Makueni and Nyando Sub-County were considered as hotspots of climate change by CCAFS. A total of 320 households were sampled from the two sub-counties. From the scope farmers were engaged in 16 agricultural intensification practices, some practices were substitutes others complementary so they were highly correlated. Principal Component Analysis (PCA) was then used to group them into clusters called principal components. PCA helped in creating levels of agricultural intensifications. From the results, the number of components (Levels of agricultural intensification) of users was ranging from one to five. That is from low users of strategy 1, partial users of 2, 3 and 4 to full users of 5. The result revealed that 56% of farmers used 5 sets of strategies while 31%, 8%, 3% and 1% of farmers’ used 4, 3, 2 and 1 levels of agricultural intensification practices respectively. The results implied that there was need for smallholder farmers to increase agricultural intensification which leads to improved smallholder farmers livelihood outcomes and helps in building their resilience to harsh climatic conditions. Keywords: Agricultural intensification practices, Kenya, Principal Component Analysis, Smallholder farmer DOI: 10.7176/JESD/10-18-04 Publication date:September 30th 201