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Market arrangements used by small scale bean farmers in Kenya: What needs to change for sustainable trade volumes?

This case study assessed marketing arrangements used by small scale farmers in the Lake Basin and Lower Eastern bean corridors of Kenya to determine which markets work for rural producers and what changes are needed to produce and supply sufficient quantities for trade. Using exploratory research, data was collected through focus group discussions with six farmer groups representing a total of 1255 bean farmers and key informant interviews with extension staff. The results indicated that 94% of the farmers produced beans before identifying buyers with only 6% participating in group marketing. Though spot-market transactions with brokers and traders provided ready cash for the farmers, formal buyers were perceived to be more reliable but difficult to find and, operated stringent requirements which were a barrier to entry. A theory of change to integrate smallholders into formal markets to sustainably produce and supply sufficient volumes for trade should entail a transformation agenda at four levels of the value chain: intensification of production through pure stand models with greater use of certified high yielding varieties; stable price guarantees; a market-driven research and extension service and; an enabling political, policy and business environment in the bean value chain. Further research is needed to pilot these changes in a case control study.