Agricultural commercialization and food security: Evidence and policy implications for smallholder farmers in Kenya

Abstract

This study investigates the relationship between agricultural commercialization and food security among smallholder farmers in Kenya, integrating the Market Structure, Conduct, and Performance (SCP) paradigm with peasant economic theory. Using mixed methods (household survey, participant observations, and expert interviews), we compare the degrees of commercialization between food secure and food insecure households in a rural area of Kenya. Contrary to the assumption that commercialization enhances food security, our findings reveal a more complex reality. Food insecure households exhibit higher overall commercialization indices but face significant challenges, including limited access to resources, market imperfections, and a risk-averse nature prioritizing subsistence over profit maximization. The study highlights the importance of market structure and conduct in shaping food security outcomes. Factors such as farm size, crop diversity, and barriers to market entry are crucial. Food secure households benefit from larger landholdings, diversified crops, and better access to markets and inputs, leading to higher productivity and more stable food supplies. In contrast, food insecure households struggle with smaller landholdings, less diversification, and greater reliance on local markets, making them more vulnerable to food insecurity. Our research underscores the need for a holistic approach to agricultural commercialization that addresses structural issues and provides comprehensive support to smallholder farmers. Policy recommendations include strengthening property rights, improving rural infrastructure, promoting sustainable agricultural practices, and implementing social safety nets. By creating an enabling environment that supports the diverse needs of smallholder farmers, policymakers can enhance food security and promote sustainable agricultural development.