A Sugar-coated Issue: Outcome Determinants for Collective Action in Smallholder Inclusive Business Models in a Case Study of Sugarcane Cooperatives and Outgrowers in Kisumu County, Kenya.

Abstract

The sugarcane sector in Western Kenya is significantly less productive than its counterparts in surrounding countries. Researchers mention corruption, mismanagement, and poor institutional arrangements as the main causes for the high costs of production. This study analyses collective action phenomena in the sugarcane growing areas, to distil outcome determinants for collective action success or failure. A business-oriented contract farming scheme in one area is compared to a cooperative-driven union structure in another. Next, the main issues are discussed, indicating the context within which these groups operate. Within this context, a survey identifies structure, conduct, and performance data of cooperatives in the Chemelil area. While some cooperatives conduct their activities in a slightly different manner, the opportunities for variation are small, and the institutional context is not conducive to investment in these groups. Finally, an experimental method is used to illustrate results using Social Network Analysis.