Exploring processed common beans market in Kenya: Implications for the business community

Abstract

AbstractIn Kenya, like in many developing countries, the food consumption patterns among the elites and middle classes are shifting towards the consumption of convenient processed foods. This has led research and development initiatives in Kenya to innovate the-shelf bean products to meet the changing consumer needs. However, there is limited information on how the various processed bean processors and distributors are performing. This study explores the structure and performance of the processed common bean market to advise the would-be contenders in the same business. To achieve this, the study applied the structure, conduct, and performance framework to analyze data that was collected from 19 bean processors and 90 distributors. Study findings show that the market structure of firms processing common beans exhibited oligopolistic tendencies with 4 firms controlling 89% of the entire market, while its distribution proved to be more competitive with 4 firms controlling 16% of the market. Initial investment and limited product market are the primary barriers that make bean processing an undesirable venture for many new entrants. To gain momentum, compete with already established brands, and break the oligopoly tendencies in the market, medium-scale processors should be facilitated with tax exemptions. Products produced by home companies should be widely advertised. There is also a need for distribution strategies that can easily get the processed common beans market to consumers to maintain competition and low stock turnover for the products at the distribution level.

Keywords

• Competitive
• concentration ratio
• performance
• processed bean
• structure