Exploring the Influence of Export Environment on Market Standard Dimensions and Horticultural Market Growth in South Rift, Kenya

Abstract

The inclusion of rural smallholder farmers in the export of horticultural products has two major implications: increased household income through a promising global market, which is a catalyst for productivity, cumulatively growing Gross Domestic Product (GDP) and foreign exchange. So far, there are an estimated 2500 smallholder farmers who participate in the export of horticulture in Kenya. As a result, the current study sought to establish the influence of export environment on the relationship between market standard dimensions and export market growth of the horticultural products from small scale farmers in south rift of Kenya. The study collected quantitative data using a structured questionnaire from a sample of 334 small-scale horticultural farmers who were randomly selected. Validity and reliability tests were performed before the main study. Then, descriptive and multiple regression was used to analyze the data. Export environment was measured through: government support and services for export, government regulations and certifications and trade agreements and market access. Findings indicated that there was a statistically significant influence relationship between market standard dimensions and the growth of horticultural export market, where export environment on each predictor variable had the highest influence on market dynamics, followed by quality control, traceability and post-harvest handling practices being the least. This implies that the export environment plays a critical role in making the smallholder farmers’ products more competitive in export market. The study concluded that, appropriate policies, regulations and trade agreements were critical in market standards compliance. The government should create a framework to effectively disseminate information on trade agreements so as to benefit farmers and in addition establish collaboration between farmers, the government and private sector in export intervention measures.