Agribusiness Essay 2
CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter will cover the background information, statement of the problem clearly stating the problem and possible research gaps which led the researcher to undertake the research. Research objectives and the research questions that the researcher intends to have accomplished will also be stated, clearly indicating the expected importance of the study and the limitations expected during the survey.
1.1 Background on Agribusinesses
Extracts from the Governments’ Kenya Vision 2030 proposal, aims to transform Kenya into a newly industrializing, “middle-income country, providing high quality life to all its citizens by the year 2030.” This vision is based on three “pillars”, the economic, the social and the political. It is on the Economic “pillar” on which the role of Agribusiness is brought out.
The economy of Kenya is very dependent on agriculture, which employs more than 75 percent of the available workforce, both in the formal and informal sectors. Agriculture as a share of GDP contributes more than 30 percent to the economy and brings in more than 6 percent of total foreign exchange earnings. Agricultural goods are now Kenya's third largest merchandise export. GOK (2007)
In Agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, marketing and distribution, processing livestock feeds, wholesale and retail trade. In light of the economic crisis 2008/2009, the environment of many businesses changed dramatically which led to a significant increase in uncertainty and risk for those firms, hence forced many firms to adopt Strategic control mechanisms in line with the changing environment.
From the onset of the process of strategic planning it should be noted that, regardless of the level at which strategies exist, strategies are not always successful. Part of the explanation for this
INTRODUCTION
1.0 Introduction
This chapter will cover the background information, statement of the problem clearly stating the problem and possible research gaps which led the researcher to undertake the research. Research objectives and the research questions that the researcher intends to have accomplished will also be stated, clearly indicating the expected importance of the study and the limitations expected during the survey.
1.1 Background on Agribusinesses
Extracts from the Governments’ Kenya Vision 2030 proposal, aims to transform Kenya into a newly industrializing, “middle-income country, providing high quality life to all its citizens by the year 2030.” This vision is based on three “pillars”, the economic, the social and the political. It is on the Economic “pillar” on which the role of Agribusiness is brought out.
The economy of Kenya is very dependent on agriculture, which employs more than 75 percent of the available workforce, both in the formal and informal sectors. Agriculture as a share of GDP contributes more than 30 percent to the economy and brings in more than 6 percent of total foreign exchange earnings. Agricultural goods are now Kenya's third largest merchandise export. GOK (2007)
In Agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, marketing and distribution, processing livestock feeds, wholesale and retail trade. In light of the economic crisis 2008/2009, the environment of many businesses changed dramatically which led to a significant increase in uncertainty and risk for those firms, hence forced many firms to adopt Strategic control mechanisms in line with the changing environment.
From the onset of the process of strategic planning it should be noted that, regardless of the level at which strategies exist, strategies are not always successful. Part of the explanation for this