We found that exporting more of Kenya’s avocado production could raise the incomes of Kenyan smallholder farmers. But, to do so, programs and policy makers need to reduce the barriers that smallholders face when they want to participate in export markets. These include the costs of harvesting, transport and having liquidity. There are also farmers’ organization transaction costs, such as membership fees and the opportunity costs of time when attending meetings.
- Capital and liquidity constraint. They often don’t have enough capital to meet the high costs of participation in export markets. For instance being able to buy or grow higher quality avocados. In most cases, contract farmers need to harvest the produce themselves and transport it to collection sheds or company premises. Their payment then usually arrives after a delay of one to two weeks.
- Limited access to production technologies and institutional support. For instance, credit and training. This means smallholder avocado farmers are left out of important parts of the value chain.
- Poor infrastructure. In rural areas a lack of good roads makes it difficult and costly to bring produce to markets in far-off areas.
