Impacts of the KBDS and KHDP projects on the tree fruit value chain of Kenya

 microREPORT #129, produced for USAID by Jennefer Sebstad and Donald Snodgrass. September 2008

EXECUTIVE SUMMARY

As part of its strategy to increase rural incomes, USAID/Kenya has supported two projects to develop tree fruit value chains-the Kenya Business Development Services (KBDS) project implemented by the Emerging Markets Group and the Kenya Horticulture Development Project (KHDP) implemented by Fintrac. This report presents the findings from a study of the impacts of these projects on smallholder farmers who grow avocados and passion fruit in Central and Rift Valley provinces in Kenya. The study included a panel survey of 1,640 farmers including those who have participated in these projects and a comparison group of non-participating farmers. The survey was complemented by qualitative research comprising in-depth interviews and focus group discussions with over 100 individuals involved in the tree fruit value chains: farmers, producer group leaders, input suppliers, extension service providers, brokers, exporters and the KBDS project and KHDP directors and staff.

The two projects were designed to increase rural household incomes by: • increasing the productivity of smallholders growing targeted fruits, • increasing agricultural trade in local and export markets, • improving access to business support services, and • improving the capacity of smallholder organizations to provide business services to their members.

The impact assessment is based on a causal model of how these projects are expected to improve smallholder cultivation of tree fruits and increase rural household incomes in Kenya. The assessment documents project activities expected to lead to a set of initial outcomes including increased commercialization of tree fruit cultivation and marketing. These outcomes, in turn, are expected to contribute to increased smallholder participation in the tree fruit value chains, improved competitiveness of the tree fruit subsector in Kenya and sustainable upgrading of the smallholdings. Subsequent outcomes should lead to final impacts on competitiveness, productivity, income and wellbeing at the value chain, enterprise and household levels. To four key hypotheses about project impact that derived from the causal model, a combination of quantitative and qualitative methodologies was used. The principal findings with respect to each of these hypotheses are summarized below.

Both KBDS and KHDP undertook a wide range of interventions between the baseline and endline surveys to broaden and deepen smallholders' commercial relationships in the tree fruit value chains. KHDP interventions aimed to expand the production and productivity of passion fruit through research on new varieties, demonstration plots, training, extension services and market information. KBDS interventions aimed to improve Kenya's ability to compete in the EU avocado market by not only pioneering new varieties but also changing the governance structure of the value chain in order to improve the quality of the product grown and to forge new and closer relationships between buyers and suppliers. Both projects' interventions often started as subsidized demonstrations or pilot activities that introduced new or untested services or new linkages and relationships within the value chains. In many instances, new buyers or service providers were unknown to the farmers and did not receive their full trust. Although some activities were more successful than others, the flexibility of the projects allowed for shifts in the intervention approach in response to new threats or opportunities. This assessment therefore focuses not on the impact of one, but on a mix of interventions targeting the two tree fruit value chains.

Available for download at http://www.microlinks.org/ev.php?ID=27178_201&ID2=DO_TOPIC