Comparative case studies were undertaken in Kenya and Uganda to examine the economic and social implications for FFV producers and workers supplying global, regional and domestic supermarket value chains. Research was undertaken in Kenya between May 2011 and June 2012 focusing on FFV value chain actors. A mapping was undertaken of the FFV value chain, including links to global, regional and domestic supermarkets. Key informant interviews were carried out with 15 personnel from suppliers, NGOs, supermarkets, private export companies and government; two case studies were selected for more in-depth research.
The research in Uganda was based on a value chain mapping, interviews and focus group discussions with horticulture producers, workers and other key informants in Uganda, taking place between September 2011 and July 2012. Interviews were also held with government officials; donors; experts with donor-supported programmes; the Private Sector Foundation; two FFV procurement companies; and four Kenyan and South African supermarkets.
Key Findings:
- Comparing Kenyan and Ugandan FFV and flowers, both have experienced economic upgrading within the global value chain (GVC). However, much of this export success is dominated by a small number of large commercial companies (often expatriate). Flowers have proved more advantageous than FFV for economic upgrading, mainly because of higher margins and less seasonal variation. Kenya in particular has positioned itself as a major exporter of cut stems. Uganda has repositioned itself as an exporter of cuttings in order to maintain its competitive position within the value chain.
- Upgrading has also taken place among dedicated FFV producers, but Kenya has experienced much greater success than Uganda. Smallholders have found it difficult to access global supermarket value chains, except where they are well organised and supported as out-growers. Kenya has been more successful on this than Uganda, the latter FFV exporters supplying mainly ethnic markets rather than supermarkets abroad.
- In both countries, women constitute the majority of the workforce, and bring skills that are critical to upgrading in a context where there is pressure obtaining skilled labour. Social upgrading is clearest in flowers in both Kenya and Uganda, where there has been a shift from temporary towards more permanent employment. In both countries, women constitute the vast majority of flower workers, and have experienced significant reductions in levels of sexual abuse and harassment. Many flower farms in both countries are now unionised.
- FFV workers have experienced some social gains, but not as great as in flowers. Many FFV workers remain on temporary contracts, with less employment security and lower levels of unionisation. Sexual harassment has reduced, but still occurs for temporary workers. Both flower and FFV workers have experienced improvements in nominal wages, but real wages are still below a living wage for most workers in both countries.
- An important factor in achieving social upgrading in both countries has been the role of private, social and public actors. This has included campaigning by local and international civil society organisations and trade unions, global supermarket buyers insisting on compliance with their codes of labour practice, support and training programmes by multi-stakeholder organisations and reform of labour laws to enhance workers’ rights. Campaigns have been more targeted in flowers than in FFV, and it is noteworthy that the former has experienced greater social upgrading.
Recommendations:
- Public policy, civil society initiatives and private strategies should coordinate more to address challenges across the different value chain nodes, rather than focusing on separate nodes without taking others into account. Better alliances need to be forged between different initiatives at different levels along regional and global value chains.
- With better support, smallholders and workers could climb the value chain ladder as the gradually adapt to the increasing demands of different supermarkets. A global and regional value chain approach illuminates possibilities for addressing these challenges and provides a framework for forging new forms of partnerships to support more resilient horticulture value chains in the medium to long term.
- A crucial challenge is ensuring more innovative and skilled farmers and workers continue to participate in value chains. Investing in their development at the lower rungs of the value chain ladder would help them upgrade, and support the future expansion of quality supply for all supermarkets.
- Enhancing the skills, capacity and rewards of smallholders, workers and their wider communities is essential to attract more skilled and innovative producers, smallholders and workers to agriculture. Better coordination among all stakeholders (private, public and social actors) is needed to provide wider support to smaller producers, workers, their families and communities.