Agriculture is often more talked about than it is prioritised in developing countries, yet it remains central to solving the poverty conundrum.
Understanding its role in poverty alleviation is instrumental to comprehending the overall development process. It is widely believed that the problem of lack of income and its distribution in Africa is a question of the rural poor, who consider agriculture a source of livelihood but whose ability to practice agribusiness is hampered by a lack of resources.
The 70 per cent of the world’s poor who live in rural areas consider agriculture their main source of living — it provides food, income, employment, housing materials, clothing, and so on. Going by the traditional definition of basic human needs, agriculture can easily be referred to as one.
The history of countries such as England confirms that an agricultural revolution preceded the industrial revolution. In the US and Japan, agricultural advancement has fed into the industrialisation process.
The Netherlands — whose economy relies heavily on agriculture and its exports, nearing 83 per cent of its GDP — has the most progressive and transformational agricultural practices in the world.
The sixth-largest economy in the Eurozone and the ninth-best country to do business has a highly mechanised agricultural sector that provides huge surpluses for food-processing, making the Netherlands the second-largest agricultural exporter after the US.
The Dutch are known for a number of things, including tulips, diamonds, a liberal way of life, beautiful canals and widespread cycling. But the least highlighted is the fact that the Dutch are expert farmers.
Investment in research
Figures from Statistics Netherlands (CBS) show that last year, the total value of Dutch agricultural exports was Sh9.2 trillion — four times the value of Kenya’s 2016-17 Budget.
The most important export products were potatoes, vegetables and fruits worth Sh1.2 trillion, representing 14 per cent of the total agricultural exports to multiple destinations.
The Dutch export eggs to the US, apples and pears to Vietnam, with Germany, the largest economy in Europe, importing 25 per cent of Dutch farm produce. Three of the world’s top 25 food and beverage companies are from the Netherlands.
Even though some of the largest producers of cocoa are in Africa, Amsterdam remains the largest cocoa port in the world.
The success of the Dutch agricultural sector is attributed to investment in research, and the use of food processing technology, machinery, tools and equipment. More importantly, their agricultural entrepreneurs use efficient and sustainable production systems and processes that have resulted in productivity levels that are five times higher than the European average.
The Dutch have also become very proficient in the field of agri-technology, where they employ robots to pick soft fruit, and have automated meat separators and potato processors.
This is the kind of knowledge and skills Kenyan farmers can learn from their Dutch counterparts to produce optimally and remain competitive internationally.
The cordial relation between the two nations provides solid ground for increased bilateral engagements in agriculture.
There is visible synergy on both ends, demonstrated by existing Dutch programmes in food security, water, dairy and horticulture meant to empower local farmers in both production and income generation.
The Eldoret Agribusiness Fair from September 22-24, organised by the University of Eldoret, is expected to draw more than 60 Dutch companies in the horticulture, dairy, aquaculture and potato industries. They will showcase their products and services, providing a perfect opportunity for farmer-to-farmer engagement.
This is what will deliver tangible results in Kenya’s fight against poverty and assist in unlocking the country’s agricultural potential for economic growth and food security.
The writer is an economist, consultant and commentator on trade and investment.
bizbeat@standardmedia.co.ke
