| Abstract: | In this study of contract farming in the horticultural sector of Kenya, three horticultural contracting schemes are subjected to an in-depth case study analysis. The first is Njoro Canners, a processor of French beans, which has production contracts with over 15,000 smallholder farmers in western Kenya. Initiated in 1982, this project has succeeded in producing a high quality export product and providing additional sources of income and employment in an economically deprived area. The second case involves the development of the Kenya/United Kingdom trade in 'Asian vegetables'. Between 1982 and 1985 Kenya Horticultural Exporters (KHE) attempted to organize exporter/smallholder relations in the Matuu area of Machokos District on a contractual basis. The scheme was not sustainable due to the larger competitive environment for 'Asian vegetable' production and marketing in Kenya. The third case concerns the vegetable dehydrating company, Pan African Vegetable Products Ltd (PVP), the first case of smallholders growing under contract with an agricultural processing firm in Kenya. The project was initiated in 1964 and carried on until 1982. The smallholder contracting scheme of PVP was largely successful, yet the project experienced continuous financial losses as a result of processing and marketing problems and the insufficiency of large-farmer supplies of raw materials. |
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