Value chain analysis and performance of Small and Medium Floricultural Agribusiness in Kenya / Githere George
Publication details: Nairobi, Strathmore University, 2017Description: xi,54p. illSubject(s): LOC classification:- HD2346.G58 2017
Item type | Current library | Call number | Status | Date due | Barcode | Item holds | |
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Thesis | Special Collection Special Collection | HD2346.G58 2017 | Not for loan | 77085 |
A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. Value Chains offer a practical way to deal with complex issues and multiple stakeholders involved in the Agri-business. However, there is limited information on the floricultural agribusiness value chains available in Kenya and its performance. The primary purpose of this study was therefore be identify and analyze the value chain system and evaluate performance by calculating the margins within each level of the value chain in Small and Medium floricultural Agribusinesses in Kenya. The study objectives therefore were: To identify and analyze the floricultural Agribusiness value chains used by Small and Medium firms in Kenya; To evaluate the Margins at the different levels of participants in the floriculture value chain in Kenya; And to Identify the challenges faced by the Small and Medium floricultural Agribusiness value chain in Kenya. The study employed a descriptive research design with both qualitative and quantitative characteristics. The sample was purposively drawn from The Central region in Kenya. The main data collection tool was a questionnaire to the small and medium members of the floricultural value chain. The data was analyzed using tables, graphs, and other statistical tools. The findings indicate that major participants were categorized in to four distinctive groups of Farming only/Farming, processing and packaging/Processing, packaging, marketing and distribution/participants undertaking all activities. Inbound Logistics within the value chain were varied across the floricultural value chain, most of which were either self owned/produced or rented/leased. Similarly, the operations were mostly performed by a larger percentage of part time workers with minimal permanent workers. The materials and infrastructure for the operations were mostly self owned or leased. Outbound Logistics involving the warehousing and distribution of finished goods were largely outsourced to specialized participants in the value chain. Marketing & Sales involving identification of customer needs and the generation of sales as well as after sales services were largely outsourced to specialized participants within the value chain. The highest gross profit margin was achieved by the participants that were able to perform all activities in the value chain, followed by participants who were farmers only. The participants that purchased, processed, packaged and marketed the flowers had the lowest gross profit margin. The net profit margins were highest in the farmers only category where as participants that purchased, processed, packaged and marketed the flowers had the lowest net profit margin. The greatest challenge was that the scale and scope of the value chain could take a lot of work to understand. .
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