1. What are Agribusinesses ?
According to Wikipedia, the term was coined in 1957 by Goldberg and Davis. It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system.
NDT works in the following Agribusiness Sub-Sectors1. Horticulture (All fruits & vegetables)
4. Irrigation Sector
5. Animal Husbandry
6. Tea and Coffee Sectors
7. Over-The-Counter Veterinary products
2. What role has agribusiness played in Kenyan trade?
According to KARI report,’ Policy Responses to Food Crisis in Kenya’, the agricultural sector is the mainstay of the Kenya’s economy. The sector directly contributes 24% of the Gross Domestic Product (GDP) and 27% of GDP indirectly through linkages with manufacturing, distribution and other service related sectors. Approximately 45% of Government revenue is derived from agriculture and the sector contributes over 75% of industrial raw materials and more than 50% of the export earnings.
The sector is the largest employer in the economy, accounting for 60 per cent of the total employment. Over 80% of the population, especially living in rural areas, derive their livelihoods mainly from agricultural related activities. Due to these reasons the Government of Kenya (GoK) has continued to give agriculture a high priority as an important tool for promoting national development..
3. What are the challenges faced by agribusiness ventures in Kenya?
Climate Change thus Agri business is practiced in due times and seasons since not all lands in Kenya are under irrigation.
Extension Services are little or no longer being applied mainly due to lack of capital to sustain their activities in the GoK budgets.
Use of Outdated Technology i.e. many farmers have and always use old technologies as practiced by their predecessors especially parents thus Ministry of Kenya, Agro Dealers and NGO’s agricultural professionals do their very best to update farmers on best farming techniques in order to improve their yields.
Pests and Diseases also pose a very high risk of yield production due to emerging pests like ‘Tutaabsoluta’ which damage and decrease crop yields by very high percentages.
Wrong use of Agri inputs and disposal where farmers use wrong dosages to apply to plants hence creating pests and disease resistance. After use of the Agri products, many farmers don’t really know how to dispose empty cans because they pose a challenge to the eco system, other people especially children who play with them, etc.
Soil Management is also very crucial to yields in the fields. Many farmers don’t know their soils thus they farm the way they have known for ages which then had led to creation of Acidic soils which then need more investments to bring their pH to levels that can sustain agriculture.
Government Policy especially on taxing seeds which are a primary source in farming which has led to high prices of foods in the Kenyan markets since the costs are transferred to the consumers of the Agri products.
Poor roads inhibit movement of harvested Agri products to markets which then affect the quality of the produce and accessibility of the markets is very difficult.
Lack of knowledge on Ari business has led to exploitation of farmers by middle-men who give farmers a raw deal in buying their products thus many farmers are enslaved in the same state for ages/from generation to generation.