Type | Working Paper |
Title | Kenya Market Analysis-An Evaluation for Emerging Food Technology Companies |
Author(s) | |
Publication (Day/Month/Year) | 2017 |
URL | https://dukespace.lib.duke.edu/dspace/bitstream/handle/10161/14030/Final Draft.pdf?sequence=1 |
Abstract | Innovations in the agricultural technology market are designed to help alleviate a variety of different stressors that impact the quality of food on its way from the farm to the table. Research has found that the developing world, in particular, is prone to waste and decay in the earlier sections of the supply chain, including infrastructure and packaging. The use of active packaging technology (AP) has been found to reduce this waste and help more products successfully reach the market by increasing shelf life of fresh produce. Businesses are now turning to developing countries for expansion opportunities where AP technology would have a significant impact. One such country is Kenya. The following report outlines the general history of Kenya, economic indicators, and an overall market analysis that will help businesses evaluate the market for agriculture innovation in the country and whether they should invest. This research finds that AP products geared towards preserving fresh produce and berries should do reasonably well in Kenya given the agricultural goods that are grown there. However, those who attempt to enter this market should proceed with caution. Although Kenya has a variety of laws in place that should protect foreign investors and intellectual property rights, it is unclear whether governmental organizations have the will to truly enforce these regulations. Furthermore, concerns exist over the physical state of infrastructure and political stability that could negatively impact the success of a new business. That said, Kenya is deeply reliant on the strength of its agricultural market. A considerable portion of their population is involved in some way in agriculture, especially women. Technological changes that could improve efficiencies in this market could present a unique opportunity for the empowerment of women, particularly in rural communities. Additionally, the Kenyan economy has grown tremendously in recent years and shows few signs of stopping and has attracted a wide variety of investors. Businesses have already shown interest in the expansion of agricultural technology in the country and have made connections with existing growers’ groups to help strengthen networks and increase communication. Therefore, Kenya presents a strong case for investment in AP technology. Issues at the federal level should not completely deter investors, but rather, should make them fully aware of the environment they are considering entering. Investment in this case could not only mean profit, but could also have positive social and environmental benefits that would help not only Kenyans, but the global community as well. |
» | Kenya - Demographic and Health Survey 2014 |