Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya

Agroecology has been highlighted as a sustainable approach that could support food system transformation in many low- and middle-income countries (LMIC). However, there is limited evidence on the costs and benefits associated with agroecological transition. Moreover, existing evidence is only limit...

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Main Authors: Ndiwa, Aurillia Manjella, Onyango, Kevin, Bolo, Peter, Wanyama, Rosina, Chege, Christine Kiria
Format: Artículo preliminar
Language:Inglés
Published: 2024
Subjects:
Online Access:https://hdl.handle.net/10568/168226
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author Ndiwa, Aurillia Manjella
Onyango, Kevin
Bolo, Peter
Wanyama, Rosina
Chege, Christine Kiria
author_browse Bolo, Peter
Chege, Christine Kiria
Ndiwa, Aurillia Manjella
Onyango, Kevin
Wanyama, Rosina
author_facet Ndiwa, Aurillia Manjella
Onyango, Kevin
Bolo, Peter
Wanyama, Rosina
Chege, Christine Kiria
author_sort Ndiwa, Aurillia Manjella
collection Repository of Agricultural Research Outputs (CGSpace)
description Agroecology has been highlighted as a sustainable approach that could support food system transformation in many low- and middle-income countries (LMIC). However, there is limited evidence on the costs and benefits associated with agroecological transition. Moreover, existing evidence is only limited to farm level assessments, yet agroecology assessment needs to be done from a systems perspective. We conducted a cost benefit analysis associated with AE transition along two existing business models in the mango value chain in Makueni County, Kenya. At farm level, the agroecological interventions considered in the analysis include intercropping, activities related to reduced postharvest losses, and the use of organic inputs. At the business level, these interventions include physical expansion of the enterprises, product and market diversification and proper postharvest handling. Our findings show that the benefits associated with agroecological transition are significantly higher than the costs at both farm and business levels. At farm level the net present value (NPV) ranged between USD 300 and USD 400, a positive benefit cost ration (BCR) (>1) with a payback period of two years while the internal rate of return (IRR) ranged between 100% and 325%. At business level the NPV were above USD 10,000 with a positive IRR of between 15% and 37%, a BCR of >1 and a payback period of between three and four years. The results imply that agroecological transition is profitable both at farm and business level, although there is a waiting period which may be a barrier to many smallholder farmers and small businesses. Policy interventions to integrate agroecological approaches across key food value chains would promote sustainable food system transformation, especially in vulnerable contexts of LMIC. The social, health, and environmental benefits are also discussed.
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spelling CGSpace1682262025-12-08T10:11:39Z Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya Ndiwa, Aurillia Manjella Onyango, Kevin Bolo, Peter Wanyama, Rosina Chege, Christine Kiria agroecology value chains cost benefit analysis mangoes developing countries Agroecology has been highlighted as a sustainable approach that could support food system transformation in many low- and middle-income countries (LMIC). However, there is limited evidence on the costs and benefits associated with agroecological transition. Moreover, existing evidence is only limited to farm level assessments, yet agroecology assessment needs to be done from a systems perspective. We conducted a cost benefit analysis associated with AE transition along two existing business models in the mango value chain in Makueni County, Kenya. At farm level, the agroecological interventions considered in the analysis include intercropping, activities related to reduced postharvest losses, and the use of organic inputs. At the business level, these interventions include physical expansion of the enterprises, product and market diversification and proper postharvest handling. Our findings show that the benefits associated with agroecological transition are significantly higher than the costs at both farm and business levels. At farm level the net present value (NPV) ranged between USD 300 and USD 400, a positive benefit cost ration (BCR) (>1) with a payback period of two years while the internal rate of return (IRR) ranged between 100% and 325%. At business level the NPV were above USD 10,000 with a positive IRR of between 15% and 37%, a BCR of >1 and a payback period of between three and four years. The results imply that agroecological transition is profitable both at farm and business level, although there is a waiting period which may be a barrier to many smallholder farmers and small businesses. Policy interventions to integrate agroecological approaches across key food value chains would promote sustainable food system transformation, especially in vulnerable contexts of LMIC. The social, health, and environmental benefits are also discussed. 2024-12-20 2024-12-21T08:59:51Z 2024-12-21T08:59:51Z Working Paper https://hdl.handle.net/10568/168226 en Open Access application/pdf Ndiwa, A.M.; Onyango, K.; Bolo, P.; Wanyama, R.; Chege, C.K. (2024) Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya. Agroecology Initiative Technical Report. 42 p.
spellingShingle agroecology
value chains
cost benefit analysis
mangoes
developing countries
Ndiwa, Aurillia Manjella
Onyango, Kevin
Bolo, Peter
Wanyama, Rosina
Chege, Christine Kiria
Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title_full Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title_fullStr Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title_full_unstemmed Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title_short Cost benefit analysis of agroecological transition: A case of mango value chain in Kenya
title_sort cost benefit analysis of agroecological transition a case of mango value chain in kenya
topic agroecology
value chains
cost benefit analysis
mangoes
developing countries
url https://hdl.handle.net/10568/168226
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