The Competitiveness of Tomato Value Chain, Kenya

Abstract

Tomato (Lycopersicon esculentum mill) is an important vegetable, ranked number three among the vegetables. The vegetable contributes about 31.8% to domestic horticulture and is ranked in the following order: Kales, Cabbages, Tomatoes, Cowpeas, Spider plants, Snow peas, Nightshade and Amaranth. Tomato fruits can be used as salads, cooked as vegetables, processed into tomato paste (puree), tomato sauce, ketchup, juice and sun-dried tomato. This study only analysed tomato fruits and did not study the products of tomato fruits. Tomato production is grown in most of the agro-ecological zones in the country. There is a high demand for tomato consumption in the country because every household uses tomato and the performance of tomato production could depend on the production system in place. There are two production systems, the open field and the protected environment system (greenhouse technology or screen house technology) and the two production systems have different performance potential. The greenhouse technology is only 10% adoption rate and the open field technology is 90% adoption rate. The greenhouse technology supposedly produces more up to tenfold compared to open field technology. The open field technology and the greenhouse technology use the determinate and indeterminate tomato varieties, respectively. This study, therefore, purposed to determine the profitability level of the two tomato production systems in Kenya. The study used documents from Horticulture Development Authority, Kenya Agriculture Livestock Research Organization, Amiran Kenya Limited and Ministry of Agriculture, Livestock and Fisheries. Partial budgeting analysis and Breakeven analysis were used to determine profitability. The net return obtained for using equivalent greenhouse technology over the open field technology in one acre of land was Ksh 1,328,320 in one production season. The average net return was Ksh 127,478 per greenhouse technology in one production season. There was also an average net return of Ksh 127.5 per plant. The Breakeven analysis in greenhouse technology was 335,010.137 kgs of Tomatoes in one production season. The Breakeven analysis in greenhouse technology per one greenhouse was 32,150.685kgs of tomatoes. Therefore, only 1.6 production seasons are required to breakeven. Thus, it can be concluded from the study that it is economically worthwhile to use greenhouse technology in tomato production in Kenya.