Agroecological transition can boost Kenya’s food system: evidence from a cost–benefit analysis of the mango value chain

Résumé

Agroecological transition offers a sustainable pathway for food systems transformation in many low- and middle-income countries (LMICs). However, empirical evidence on its economic viability remains limited, particularly beyond farm-level assessments and from a systems perspective. To fill this gap, we conducted a cost–benefit analysis associated with agroecological transition in two existing business models—at the farm and business levels—for the mango value chain in Makueni County, Kenya. Our analysis considered farm-level agroecological interventions, such as intercropping, postharvest loss reduction activities, and the application of organic inputs. Business-level agroecological interventions included the businesses’ physical expansion, product and market diversification, and appropriate postharvest handling. This study used a discounted cost–benefit analysis within a value chain framework, drawing on primary and secondary data, to assess the economic viability of agroecological transition using NPV, IRR, benefit–cost ratio, and payback period indicators. Our findings show that the benefits associated with agroecological transition significantly outweigh the costs, at both levels. At the farm level, the net present value ranged between US$ 300 and US$ 400, indicating a positive benefit-to-cost ratio (>1), with a 2-year payback period, while the internal rate of return ranged between 100 and 325%. At the business level, the net present value was above US$ 10,000, with a positive internal rate of return of between 15 and 37%, a benefit-to-cost ratio of >1, and a payback period of 3–4 years. These results show that agroecological transition in the Makueni County mango value chain can be profitable, although benefits are delivered over time, which may be a barrier to many smallholder farmers and small businesses. These findings suggest the need for supportive policy, institutional and financial mechanisms to integrate agroecological interventions across key food value chains would promote sustainable food systems transformation, especially in vulnerable LMIC contexts. Key social, health, and environmental benefits include reduced exposure to harmful agro-chemicals, enhanced ecological synergy, and increased social collaboration and cohesion. Strategic investments and partnerships with financial institutions, and operational efficiencies are crucial. Strengthening enabling policy and institutional environments for agroecological transition in the Kenyan mango value chain offer a promising pathway to sustainable development.

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