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

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cg.authorship.typesCGIAR multi-centreen
cg.contributor.affiliationBioversity Internationalen
cg.contributor.donorCGIAR Initiative on Agroecologyen
cg.contributor.donorCGIAR Trust Funden
cg.contributor.initiativeAgroecology
cg.coverage.countryKenya
cg.coverage.iso3166-alpha2KE
cg.coverage.regionAfrica
cg.coverage.regionEastern Africa
cg.coverage.regionSub-Saharan Africa
cg.creator.identifierOnyango Kevin: 0000-0002-0196-4384en
cg.creator.identifierPeter BOLO: 0000-0002-4202-7557en
cg.creator.identifierChristine G.Kiria Chege: 0000-0001-8360-0279en
cg.subject.actionAreaSystems Transformation
cg.subject.alliancebiovciatSMALLHOLDER FARMERSen
cg.subject.alliancebiovciatSUSTAINABILITYen
cg.subject.alliancebiovciatVALUE CHAINSen
cg.subject.impactAreaNutrition, health and food security
cg.subject.sdgSDG 2 - Zero hungeren
cg.subject.sdgSDG 12 - Responsible production and consumptionen
cg.subject.sdgSDG 13 - Climate actionen
dc.contributor.authorNdiwa, Aurillia Manjellaen
dc.contributor.authorOnyango, Kevinen
dc.contributor.authorBolo, Peteren
dc.contributor.authorWanyama, Rosinaen
dc.contributor.authorChege, Christine Kiriaen
dc.date.accessioned2024-12-21T08:59:51Zen
dc.date.available2024-12-21T08:59:51Zen
dc.identifier.urihttps://hdl.handle.net/10568/168226
dc.titleCost benefit analysis of agroecological transition: A case of mango value chain in Kenyaen
dcterms.abstractAgroecology 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.en
dcterms.accessRightsOpen Access
dcterms.bibliographicCitationNdiwa, 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.en
dcterms.extent42 p.en
dcterms.issued2024-12-20en
dcterms.languageen
dcterms.licenseCC-BY-4.0
dcterms.subjectagroecologyen
dcterms.subjectvalue chainsen
dcterms.subjectcost benefit analysisen
dcterms.subjectmangoesen
dcterms.subjectdeveloping countriesen
dcterms.typeWorking Paper

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Alliance Bioversity CIAT Working and Discussion Papers
Alliance Research Lever 1: Food Environment and Consumer Behavior
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CGIAR Initiative on Agroecology