IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v99y2020ics026483771931909x.html
   My bibliography  Save this article

Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models

Author

Listed:
  • Giger, Markus
  • Mutea, Emily
  • Kiteme, Boniface
  • Eckert, Sandra
  • Anseeuw, Ward
  • Zaehringer, Julie G.

Abstract

Many experts agree that more agricultural investment is needed in the global South to improve local food security and reduce poverty. However, there is a lack of consensus about the types of investment needed to achieve these goals. This paper contributes to the literature on large agricultural investments and corresponding business models by inventorying and analysing such investments in Kenya’s Nanyuki area. We identify four clusters of business models that differ primarily by type of production and other distinct determinants, namely: demand from markets; access to land; land tenure regime and colonial history; actors involved; biophysical context; labour availability; and governance of the value chain via private standards. The study results shed light on the factors that help or hinder implementation of large agricultural investments and shape their impacts in the context of African land use systems. The way land is accessed represents one of the most-decisive factors determining the risks and opportunities associated with such projects. We find that most investments in the Nanyuki area occur on land bought or leased from private owners.

Suggested Citation

  • Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s026483771931909x
    DOI: 10.1016/j.landusepol.2020.104833
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S026483771931909X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104833?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Humphrey & Neil McCulloch & Masako Ota, 2004. "The impact of European market changes on employment in the Kenyan horticulture sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 63-80.
    2. Ward Anseeuw & Mathieu Boche & Wytske Chamberlain & T. Kapuya & Mélanie Favrot, 2012. "Large-scale land investments in Southern Africa," Working Papers hal-03078185, HAL.
    3. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    4. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    5. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
    6. Houssou, Nazaire & Diao, Xinshen & Cossar, Frances & Kolavalli, Shashidhara & Jimah, Kipo & Aboagye, Patrick Ohene, 2013. "Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?," GSSP working papers 30, International Food Policy Research Institute (IFPRI).
    7. Spencer Henson & John Humphrey, 2010. "Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1628-1646.
    8. Schoneveld, George Christoffel, 2014. "The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa," Food Policy, Elsevier, vol. 48(C), pages 34-50.
    9. Fionn Murtagh & Pierre Legendre, 2014. "Ward’s Hierarchical Agglomerative Clustering Method: Which Algorithms Implement Ward’s Criterion?," Journal of Classification, Springer;The Classification Society, vol. 31(3), pages 274-295, October.
    10. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    11. Nazaire Houssou & Xinshen Diao & Frances Cossar & Shashidhara Kolavalli & Kipo Jimah & Patrick Ohene Aboagye, 2013. "Agricultural Mechanization in Ghana: Is Specialized Agricultural Mechanization Service Provision a Viable Business Model?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1237-1244.
    12. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    13. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Clark University, vol. 86(2), pages 197-222, April.
    14. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.
    15. Chamberlain, Wytske & Anseeuw, Ward, 2019. "Inclusive businesses in agriculture: Defining the concept and its complex and evolving partnership structures in the field," Land Use Policy, Elsevier, vol. 83(C), pages 308-322.
    16. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    17. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    18. Holden, Stein T. & Otsuka, Keijiro, 2014. "The roles of land tenure reforms and land markets in the context of population growth and land use intensification in Africa," Food Policy, Elsevier, vol. 48(C), pages 88-97.
    19. Elizaphan James O. Rao & Matin Qaim, 2016. "Supermarket Growth and Rural Welfare: Evidence from Kenya," India Studies in Business and Economics, in: N. Chandrasekhara Rao & R. Radhakrishna & Ram Kumar Mishra & Venkata Reddy Kata (ed.), Organised Retailing and Agri-Business, edition 1, chapter 5, pages 81-97, Springer.
    20. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-18.
    21. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Taylor & Francis Journals, vol. 86(2), pages 197-222, April.
    22. Carlos Oya, 2013. "The Land Rush and Classic Agrarian Questions of Capital and Labour: a systematic scoping review of the socioeconomic impact of land grabs in Africa," Third World Quarterly, Taylor & Francis Journals, vol. 34(9), pages 1532-1557, October.
    23. Heath Henderson & Alan G. Isaac, 2017. "Modern Value Chains and the Organization of Agrarian Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(2), pages 379-400.
    24. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    25. Christian H.M. Ketels & Olga Memedovic, 2008. "From clusters to cluster-based economic development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 375-392.
    26. Mathieu Boche & Ward Anseeuw & T. Kapuya & S. Aubin & I. Sunga, 2012. "Global Land Deals," Post-Print hal-03072578, HAL.
    27. N. Chandrasekhara Rao & R. Radhakrishna & R. K. Mishra & Venkata Reddy Kata, 2016. "Implications of New Supply Chains on the Indian Farm Economy: An Overview," India Studies in Business and Economics, in: N. Chandrasekhara Rao & R. Radhakrishna & Ram Kumar Mishra & Venkata Reddy Kata (ed.), Organised Retailing and Agri-Business, edition 1, chapter 1, pages 1-25, Springer.
    28. Ward Anseeuw & Mathieu Boche & Wytske Chamberlain & T. Kapuya & Mélanie Favrot, 2012. "Large-scale land investments in Southern Africa," Post-Print hal-03078185, HAL.
    29. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Working Papers hal-02875924, HAL.
    30. Glover, Steven & Jones, Sam, 2019. "Can commercial farming promote rural dynamism in sub-Saharan Africa? Evidence from Mozambique," World Development, Elsevier, vol. 114(C), pages 110-121.
    31. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications - Books, The World Bank Group, number 2263, December.
    32. Wytske O. Chamberlain & Ward Anseeuw, 2018. "Inclusive Businesses and Land Reform: Corporatization or Transformation?," Land, MDPI, vol. 7(1), pages 1-17, January.
    33. Mathieu Boche & Ward Anseeuw, 2013. "Unraveling "land grabbing" - Different models of large-scale land acquisition in Southern Africa: LDPI Working Paper 46," Post-Print hal-03077370, HAL.
    34. Jacobi, Johanna & Mukhovi, Stellah & Llanque, Aymara & Augstburger, Horacio & Käser, Fabian & Pozo, Claudia & Ngutu Peter, Mariah & Delgado, José Manuel Freddy & Kiteme, Boniface P. & Rist, Stephan & , 2018. "Operationalizing food system resilience: An indicator-based assessment in agroindustrial, smallholder farming, and agroecological contexts in Bolivia and Kenya," Land Use Policy, Elsevier, vol. 79(C), pages 433-446.
    35. Catherine Dolan & John Humphrey, 2004. "Changing Governance Patterns in the Trade in Fresh Vegetables between Africa and the United Kingdom," Environment and Planning A, , vol. 36(3), pages 491-509, March.
    36. Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
    37. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wegayehu Fitawek & Sheryl L. Hendriks, 2021. "Evaluating the Impact of Large-Scale Agricultural Investments on Household Food Security Using an Endogenous Switching Regression Model," Land, MDPI, vol. 10(3), pages 1-19, March.
    2. Abeygunawardane, Dilini & Kronenburg García, Angela & Sun, Zhanli & Müller, Daniel & Sitoe, Almeida & Meyfroidt, Patrick, 2022. "Resource frontiers and agglomeration economies: The varied logics of transnational land-based investing in Southern and Eastern Africa," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 51(6), pages 1535-1551.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    2. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).
    3. Chamberlin, Jordan & Jayne, T. S., 2017. "Does Farm Structure Matter? The Effects of Farmland Distribution Patterns on Rural Household Incomes," Feed the Future Innovation Lab for Food Security Policy Research Papers 275685, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    4. Christoph Oberlack & Markus Giger & Ward Anseeuw & Camilla Adelle & Magalie Bourblanc & Perrine Burnod & Sandra Eckert & Wegayehu Fitawek & Eve Fouilleux & Sheryl Hendriks & Boniface Kiteme & Livhuwan, 2021. "Why do large-scale agricultural investments induce different socio-economic, food security, and environmental impacts? Evidence from Kenya, Madagascar, and Mozambique," Post-Print hal-03419337, HAL.
    5. Marcello De Maria, 2019. "Understanding Land in the Context of Large-Scale Land Acquisitions: A Brief History of Land in Economics," Land, MDPI, vol. 8(1), pages 1-14, January.
    6. Michael Brüntrup & Fabian Schwarz & Thomas Absmayr & Jonas Dylla & Franziska Eckhard & Kerstin Remke & Konrad Sternisko, 2018. "Nucleus-outgrower schemes as an alternative to traditional smallholder agriculture in Tanzania – strengths, weaknesses and policy requirements," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 807-826, August.
    7. Giovannetti, Giorgia & Ticci, Elisa, 2016. "Determinants of biofuel-oriented land acquisitions in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 678-687.
    8. Scoppola, M. & Raimondi, V., 2018. "Foreign Land Acquisitions and Environmental Regulations: does the Pollution-Haven Hypothesis hold?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277098, International Association of Agricultural Economists.
    9. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    10. Conigliani, Caterina & Cuffaro, Nadia & D’Agostino, Giovanna, 2018. "Large-scale land investments and forests in Africa," Land Use Policy, Elsevier, vol. 75(C), pages 651-660.
    11. German, Laura A. & Bonanno, Anya M. & Foster, Laura Catherine & Cotula, Lorenzo, 2020. "“Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains," World Development, Elsevier, vol. 134(C).
    12. Alois Mandondo & Laura German, 2015. "Customary rights and societal stakes of large-scale tobacco cultivation in Malawi," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(1), pages 31-46, March.
    13. Mechiche-Alami, Altaaf & Yagoubi, Jihad & Nicholas, Kimberly A., 2021. "Agricultural land acquisitions unlikely to address the food security needs of African countries," World Development, Elsevier, vol. 141(C).
    14. Raimondi, Valentina & Scoppola, Margherita, 2022. "The impact of foreign land acquisitions on Africa virtual water exports," Ecological Economics, Elsevier, vol. 193(C).
    15. Chamberlin, Jordan & Jayne, T. S., 2017. "Farmland Concentration And Rural Income Growth: Evidence From Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 265608, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    16. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    17. William G. Martin & Ravi Arvind Palat, 2014. "Asian Land Acquisitions in Africa: Beyond the ‘New Bandung’ or a ‘New Colonialism’?," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 3(1), pages 125-150, April.
    18. Margherita Scoppola & Margherita Scoppola, 2016. "Foreign Direct Investments and trade in agriculture: an incomplete contracts approach," FOODSECURE Working papers 49, LEI Wageningen UR.
    19. Matthias Bujko & Christian Fischer & Tim Krieger & Daniel Meierrieks, 2016. "How Institutions Shape Land Deals: The Role of Corruption," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 205-217, October.
    20. Kerstin Nolte & Susanne Vaeth, 2013. "Interplay of Land Governance and Large-Scale Agricultural Investment: Evidence from Ghana and Kenya," MAGKS Papers on Economics 201350, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s026483771931909x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.