Connecting the Concepts of Frugality and Inclusion to Appraise Business Practices in Systems of Food Provisioning: A Kenyan Case Study

Small and medium size business enterprises (SMEs) are the linchpin in systems of food provisioning in sub-Saharan Africa. These businesses occupy the middle of the agri-food chain and face a food security conundrum: they must ensure that smallholder producers of limited means can operate under fair terms while low-income consumers are supplied with affordable and nutritious food. This task becomes even more challenging when resources are scarce. This paper explores how resource-constrained SMEs arrange the terms on which both farmers and consumers are included in agri-food chains. To this end, it combines the concept of inclusion with that of frugality. We use the case of a Kenyan SME to demonstrate how a focus on frugality can advance our understanding of how business practices create thriving business relationships with smallholders while simultaneously ensuring access to affordable food for consumers. We additionally identify what conditions for inclusion emerge from this type of dynamic business practices. Our perspective departs from assessing induced organisational interventions, such as contract farming or cooperatives, which deliberately shorten the agri-food chain, thereby overlooking the skilful practices being employed by business actors in the middle of the chain.

Automated summary

Small and medium size business enterprises (SMEs) play a crucial role in the food supply systems of sub-Saharan Africa. They face the challenge of ensuring fair terms for smallholder producers while providing affordable and nutritious food for low-income consumers. This paper examines how resource-constrained SMEs manage inclusion of both farmers and consumers in agri-food chains through frugal practices. Using a Kenyan SME as a case study, it demonstrates how focusing on frugality can lead to successful business relationships with smallholders and enhance access to affordable food for consumers. It also identifies the conditions for inclusion that emerge from such dynamic business practices, which differ from traditional interventions like contract farming or cooperatives that shorten the agri-food chain.