The cut flower industry in kenya is characterised by a number of features which result in the relatively large proportion of value added accruing to farmers. Further, the study shows that there is a relationship between value chain analysis and performance of an organization. Jul 04, 2015 issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. A cluster analysis by institute for strategy harvard. The objective of this value chain analysis study is to conduct an indepth analysis in. Not only are the key challenges facing the coffee sector in kenya. This report was written for urc by debora randall, independent consultant and market linkages expert. In uganda, which is the 2nd largest exporter of coffee in africa, coffee is an important cash crop that supports over 3.
Introduction coffee is one of the key agricultural export commodities in the kenyan economy. The outcome of the analysis shows that kenya has high potential in the specialty coffee industry. While current and potential beekeeping entrepreneurs are aware. Rwanda coffee industry value chain analysis east africa. Value chain covers the entire range of activities included in the process of bringing a product to the market and to the customer. The kenya coffee industry has seen three decades of decline hurt its global opportunities.
The starting point for this work in kenya was the country economic memorandum. This is a report on research undertaken on the tea sector in kenya targeting the smallscale tea farmers who contribute over 60% of tea production in kenya. Coffee value chain analysis in kenya a case of kenya. Coffee value chain analysis in kenya a case of kenya planters cooperative union, author. Kenya coffee traders association kenya coffee industry trends and analysis. Coffee is a major agricultural export commodity of vietnam with the export value accounts for 3% of national gdp in 2014 and provides a livelihood for approximately 2. Summary of global market trends, growth in specialty coffee and regional. The case of kiambu, kilifi, vihiga, and nakuru districts. Poverty and social impact analysis, bell consulting ltd, 2006, p. Analysis of incentives and disincentives for coffee in kenya fao. Ethiopia coffee industry value chain analysis usaid. Value chain analysis of the kenyan poultry industry. The government must address three critical issues in order to improve its development.
Opportunities to enhance the competitiveness of malawis tea. Ethiopia coffee industry value chain analysis usaid compete 2010 profiling the actors, their interactions, costs, constraints and opportunities. The true price analysis also allows for crosssector comparisons, for example, by expressing. A comparative analysis of the coffee value chain igc. Coffee is a major agricultural export commodity of vietnam with the export value accounts for 3% of national gdp in 2014 and provides a.
Value chain analysis strategic management detailed. For example, the nip, which makes significant proposals, is yet to be implemented. By developing a model that describes the kenyan coffee value chain, this study. Chapter 5 of the report discusses a general approach to adopting the best practices on a short. Value chain analysis from coffee farmers to exporters case of some selected districts of ilu aba bor administrative zone, oromia, ethiopia belay kinati debelo,phd candidate department of management, faculty of business and economics,mettu university, oromia, ethiopia. The concept of value chain was introduced by michael e. Porter explains that value chain activities in an organization are divided into two classes. Usaid 2010 kenya coffee industry value chain analysis. Summary of kenya value chain analysis english the world bank.
The value chain approach considers the role of existing chain actors, supporting actors, and the policy environment. Kenyas coffee value chain is characterized by extreme fragmentation at the grower level. Index terms value chain management, efficiency improvement, tea industry, fmea. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. Coffee value chain analysis in kenya a case of kenya planters. Wolfgang boekalmann thesis submitted in partial fulfilment of the requirementsfor the joint academic degree of international master of science in rural development from ghent university belgium, agrocampus ouest france, humboldt. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the united states government. Analysis of socioeconomic factors affecting the coffee yields of smallholder farmers in kirinyaga county. For example, in rwanda alone, there are approximately 400,000 coffee farmers.
It allows us to look at current challenges in a value chain, as well as the opportunities for improving the efficiency of the value chain and the benefits for everyone involved. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. Market analysis global development solutions, llc 4 1 market analysis a. However, kenya s overall competitiveness has been on the decline. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j. In the case of the kenyan good food company, it was. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the. Strategic analysis of starbucks corporation 1 introduction. This africa private sector note highlights the value chain analysis conducted as a component of the kenya growth and competitiveness economic sector work esw completed in 2005. The existing gaps and challenges present business opportunities in input supply, feed, and processing in the pork value chain in kenya. It is based on data aggregated from a number of sources1. Since the mid1980s, michael porters value chain analysis i.
But it turns out that coffee touches communities across the country in amazing ways, from generating tax dollars to creating jobs, from the supermarket to the dairy farm. Factors affecting smallscale coffee production in githunguri. The vertically integrated value chain enables the sector to adjust and respond quickly to changing consumer preferences and international competition. Value chain analysis of the coffee sector report undp in uganda. Starbucks as an example of the value chain model supply. Dowding, university of connecticut, stamford ct usa abstract this paper examines starbucks corporate strategy of sustainable efforts in ethiopia, particularly in the sustainable sourcing arabica coffee. Porters value chain model and competitive advantage in. The predominant commercial cultivars are the sl28, sl34, k7 and ruiru ll. Company value chain can be divided into two groups.
Value chain analysis is the method for determining the critical path to enhance customer value while reducing costs. The birthplace of coffee, ethiopia is home to some of the finest coffees in the world. Age of coffee trees in the four coffee growing seasons variable northern high northern low south west total mean age 39. The oil industry in general is divided into two sections. Value chain analysis for coffee in karnataka, india. Opportunities to enhance the competitiveness of malawis. Value chain analysis of ethiopian coffee coffea arabica. The value chain of raw coffee beans has been considered. However, the sector is facing enormous challenges as the current farming methods and. Despite its contribution in poverty alleviation, the tomato industry is faced with a myriad of constraints along its value chain. Upstream operations involve exploration and production works that will to discovery and mining of petroleum. Summary of kenya value chain analysis english abstract. Value chain analysis and performance of the kenyan good food. This study was carried out to determine the factors affecting small scale coffee production in kenya.
While other countries have used the less technologically complicated textile sector to kick off rapid industrialization, kenya allowed marketing boards to destroy the cotton value chain beginning with the destruction of cotton growing and ginning. The value chain starts from the farmer and goes up to the level of the roaster. In 1963, coffee production stood at 43,778 tons from a total hectarage of 45,538 and this rose to approximately,000 tons from. May 15, 2017 the government of kenya gok recognizes coffee as an important livelihood crop and a key foreign exchange earner. Pdf value chain analysis of the kenyan poultry industry. The research was carried out from april to july 2007 and embraced key stakeholders in the supply chain and value addition process in both the local and the export market. Industry, and represents the bulk of ethiopian coffee exports. Challenges facing dairy farming in kenya how is value chain analysis done. Today, rwandan coffee is increasingly recognized as a highquality product, one for which importers such as solberg and hansen and in turn, consumers, are willing to pay a premium although the rwandan economy is diversifying, agriculture continues to be the primary source of livelihood for 90 percent of the population. Nov 08, 2017 watch the video till the end and do not forget to subscribe our channel for more such videos. It was to determine whether marketing factors, finances, government policies and physical and human resources affect coffee production in githunguri district. Constraints for developing country value chain upgrading the main aim of a value chain is to produce value added products or.
The association has enjoyed loyal support from industry stakeholders across the value chain millers, marketing agents, dealers, warehousemen, roasters, and coffee equipment suppliers and through effective consultations with affa coffee directorate, coffee research institute and nairobi coffee exchange, has established itself as a highly. We will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e. Everything you need to know about value chain analysis. Somalia, on the south by kenya and on the west and northwest by sudan. Agricultural value chains in developing countries a. The purposive and random sampling technique were used. Background t his kenya market analysis is a desk study focused on three key sectors and their products. This technical note is not to be interpreted as an analysis of the value chain or detailed description of production, consumption or trade patterns. However, kenyas overall competitiveness has been on the decline. Agricultural value chains in developing countries a framework. A cluster analysis page 2 of 34 executive summary kenya has experienced slow but steady growth since independence and has been more stable politically than many of its neighbors. Pockets of the blue mountain and french mission however still exists in. Value chain analysis for the coffee sector in rwanda cbi. The gok does not run any specific price support or direct subsidy program for coffee farmers or other coffee value chain players.
Kenya value chain and competitiveness analysis volume 1. In kenya, tomato plays a critical role in meeting domestic and nutritional food requirement, generation of income, foreign exchange earnings and creation of employment. V strengthening market linkages for smallholder rural farmers in uganda a diverse set of voices contributed to this landscape analysis, from both public and private sectors. The gok has however occasionally waived nonperforming. By changwony amos kemboi a research project report submitted in partial fulfillment of the requirements for the award of the degree of masters of business administration mba, school of business, university of nairobi. Strategic and value chain smallholder dairy study in central kenya final report by kuatcaiskippra strategic and value chain study of the smallholder dairy sector in central kenya final report b y study team members name institution role mbugua jn jkuat team leader and value chain analyst. The government of kenya gok recognizes coffee as an important livelihood crop and a key foreign exchange earner.
Identifying opportunities for value chain development in the kenyan. Starbucks valuechain analysis research methodology. Strengthening market linkages for smallholder rural. Kenyan coffee sector upgrading in the global value chain. Value chain analysis and performance of the kenyan good. However, to achieve a higher position in the global value chain and improve the situation of smallholder farmers, the thesis suggests a set of recommendations. Tanzania coffee industry value chain analysis 4 recorded in the southern coffee growing zone. Beekeeping honey value chain financing study report may 2009.
Analysis of socioeconomic factors affecting the coffee. Value chain analysis of the coffee sector report undp in. During the value chain analysis of the green beans for export and domestic market, a variety of constraints were identified that were limiting the production and income. The study on value chain analysis of coffee was conducted in palpa and kaski districts, nepal during june to august, 2016. Starbucks value chain analysis 2014 john dudovskiy. The establishments under study were smallscale coffee farms in githunguri district. The report does not cover the coffee beans processed in any manner, including roasted, ground, instant, or other forms of coffee. The concept of value chain analysis was first introduced by michael porter in 1985 in his book competitive advantage. Easily share your publications and get them in front of issuus millions of monthly readers. Aug 18, 2017 we will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e.