Do Sustainability Standards Exclude Small Farms? Modelling the Kenyan Floricultural Sector

Abstract

This study simultaneously addresses two issues: (a) defining what counts as ‘small farms’ in the rose sector, taking the geographical and socioeconomic context into account and (b) whether the requests for certification form barriers for small farms. We focus on small farms, as they are of fundamental importance for social and economic development and significantly contribute to the environmental sustainability of agriculture and land use. An agent-based model is used for analyzing an agricultural production and supply chain. The model identifies the minimum farm size needed to cover increased costs due to sustainability certifications. The model is applied to the case study of rose production in Kenya. Kenya is one of the world’s leading flower producers. Almost all Kenya’s floricultural production is exported, and the export of stem roses accounts for about 80% by weight of Kenya’s floricultural exports. Environmental and social sustainability certification is increasingly required for farms, especially those in developing countries that want to export their products. Our findings suggest that sustainability standards disadvantage small Kenyan rose farms and constitute a further obstacle to their entry into the international rose market. In this specific context, standards limit market access for farms smaller than 4 hectares. The agent-based model proposed in this study can be adjusted to help determine the definition of ‘small farms’ in need of extra support in other sectors.