Kenyan coffee sector upgrading in the Global Value Chain: How can developing countries upgrade their coffee production in the global value chain by using systems of innovation? The case of Kenyan coffee sector.
Translated title
Kenyan coffee sector upgrading in the Global Value Chain
Authors
Iqbal, Muhammad Bilal ; Konda, Primoz
Term
4. term
Publication year
2017
Submitted on
2017-06-07
Pages
139
Abstract
Dette speciale undersøger, hvordan udviklingslande kan bevæge sig op i den globale kaffeværdikæde (de verdensomspændende trin fra farm til kop) ved at opbygge og bruge innovationssystemer. Kenya er casen: landet kan producere kaffe af høj kvalitet, men har stadig en svag position i den globale værdikæde. Siden kaffemarkedet blev liberaliseret i 1990'erne, er priserne faldet, presset på småbønder er øget, og kun få lande har styrket deres position. Studiet anvender et forklarende, sekventielt mixed-methods-design: Først kortlægges kaffens værdikæde med statistiske data, og Kenyas potentiale vurderes. Dernæst gennemføres en kvalitativ analyse, styret af de første resultater, som ser på Kenyas kaffemarked gennem linsen af NSI (nationale innovationssystemer, dvs. hvordan politik, institutioner og aktører arbejder sammen for at understøtte innovation). Resultaterne peger på, at Kenya har stort potentiale i specialkaffesegmentet, hvor højere kvalitet kan give højere priser. For at løfte landets position i værdikæden og forbedre småbøndernes vilkår anbefaler specialet at forbedre infrastrukturen, styrke forbindelserne mellem aktører, forbedre governance og øge den statslige støtte. Samlet kan disse tiltag forbedre både kvalitet og mængde og hjælpe Kenya med at repositionere sig i den globale værdikæde for specialkaffe.
This thesis explores how developing countries can move up in the global coffee value chain (the worldwide steps from farm to cup) by building and using systems of innovation. Kenya is the case study: it can produce high-quality coffee but still has a weak position in global trade. Since the coffee market was liberalized in the 1990s, prices have fallen, pressure on smallholder farmers has increased, and only a few countries improved their standing. The research uses an explanatory sequential mixed-methods design: first, statistical data are used to map the coffee value chain and assess Kenya’s potential; second, a qualitative analysis, guided by those results, examines Kenya’s coffee sector through the lens of NSI (national systems of innovation, meaning how policies, institutions, and actors work together to support innovation). The findings indicate that Kenya has strong opportunities in the specialty coffee segment, where higher quality can earn higher prices. To raise Kenya’s position in the value chain and improve outcomes for smallholders, the study recommends improving infrastructure, strengthening linkages between actors, enhancing governance, and increasing government support. Together, these steps can improve both quality and quantity and help Kenya reposition within the specialty coffee value chain.
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