How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya

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.