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

Figures & data

Figure 1. Dry bean production, export, import, and consumption scenarios in Kenya (2010-2020).

Figure 2. Relationship between factors that affect the competitiveness of the firms.

Table 1. Socio-economic characteristics of common bean processors

Characteristics	Pooled (n=19)	Processors by volumes of grain processed handled			Tests of Ass
		Small scale (n=8) <100	Medium (n=7) >101<2500	Large scale (n=4) > 2500
Sex Male Female	63.16 36.84	0.00 100	57.14 42.86	75.00 25.00	8.409**
Ownership type (%) Sole Ownership Partnership Limited company	73.68 10.53 15.79	100 0.00 0.00	60.00 20.00 20.00	25.00 25.00 50.00	8.013**
Major grain sources (%) Open-air market Farmer groups Middlemen	47.37 21.05 31.58	75.00 0.00 25.00	28.57 28.58 42.86	25.00 25.00 50.00	8.013
Products processed (%) Bean flours Sorted & parked beans Baked beans Canned beans	57.89 36.84 10.53 10.53	70.00 30.00 0.00 0.00	71.43 42.86 14.29 0.00	0.00 25.00 50.00 50.00	14.11
Main customers (%) Supermarkets Retail shop Individual consumers Institutional consumers	15.63 18.79 53.13 12.50	0.00 0.00 100 0.00	42.85 28.57 85.71 28.57	100 0.00 0.00 0.00	23.3
Frequency of supply (%) Daily Weekly Monthly	78.95 5.26 15.79	85.71 0.00 14.29	71.43 0.00 28.57	75.00 25.00 0.00	5.293
Monthly volumes handled (Kg)	-	57.75 (32.12)	599.14 (476.09)	8400 (7500.62)	F (2,16) =4.15**
Company existence (years)	-	14.13(10.27)	18.57(11.70)	46.25(26.79)	F (2,16) =6.30***

Multiple responses for products processed and customers; Significance levels at 1%***, 5%**, 10%*

Table 2. Socio-economic characteristics of processed bean distributors (by type)

Characteristics	Pooled (n=90)	Supermarkets (n=84)	Retail shops (n=4)	Processor outlets (n=2)	Tests of Association
Sex Male Female	84.44 15.56	86.90 13.10	50.00 50.00	50.00 50.00	5.806**
Education level Secondary Tertiary University and above	12.22 12.22 75.56	10.71 13.10 76.19	50.00 0.00 50.00	0.00 0.00 100	7.223
Products handled Sorted and parked Bean flours Baked Canned	59.50 1.37 23.37 15.09	60.30 0.00 25.74 20.59	50.00 25.00 0.00 25.00	0.00 0.00 50.00 50.00	78.45***
Age of the owner (years)	52.98	53.29(9.13)	49.50(16.34)	50.00(7.07)	F(2,87) = 0.38
Existence (years)	7.13(7.6)	7.30(7.87)	4.25(1.89)	4.00(4.24)	F(2,87) = 0.48
Paid employees (numbers)	2	2(3.7)	1(0.00)	1(0.00)	F(2,87) = 0.11

Significance level at 1%***, 5%**, 10%*

Table 3. Market shares, concentration ratio, and market description

Variable	Processors (n=19)	Distributors (n=90)
Average market share	5.26	1.11
Concentration ratio (%)
2 firm	70.46	8.45
4 firm	89.30	15.66
8 firm	97.02	27.12
Concentration	Very high	Low
Market description	oligopoly	Perfect competition

Table 4. Products on the market and relative prices (dollars)

Products	Processor price				Test of Ass	Purchase and sale price of distributor
	Small	Medium	Large	All		Supermarkets		Retail shop		Outlets
Bean flours	0.85	1.00	-	0.95	1.30	-	-	1.03	1.60	-	-
Repacked	0.75	0.85	0.95	0.86	7.61**	-	-	1.06	1.25	0.95	1.65
Baked bean	-	2.94	2.07	2.07	-	2.48	2.94	-	-	1.95	2.06
Canned	-	-	3.04	3.04	-	2.97	3.37	-	-	2.99	3.40

Exchange rate 1 dollar = 100KShs at the time of the survey, t-tests were perfumed between small and medium for flours, while an Anova was performed for Repacked.

Table 5. Investments and Costs incurred by the processors and distributors

Investment / Cost line	Mean	Minimum	Maximum	Tests of Ass
Initial investment (USD)
Processors’ Purchase of equipment (n=6)	6288.33	4243.33	15000.00	-
Distributors’ initial capital (n=90)	220.60	14.74	798.00	-
Operational costs (USD/month)
Processors (Small scale)	28.61	1.04	195.27	2.34
Processors (Medium scale)	61.73	2.10	159.50
Processors (Large Scale)	3950.18	230.01	7670.35
Distributors	51.26	2.10	280.00
Cost of Inputs (USD/Month)
Processors (small scale)	38.68	6.0	89.00	5.05*
Processors (medium scale)	388.30	117.00	1120.00
Processor (large scale)	14565.00	1200.00	41520.00
Distributors (Purchase of products)	288.92	3.60	1044.57

Exchange rate 1dollar =100KShs at the time of the survey, significance levels at 1%***, 5%*** and 10%*

Table 6. Information asymmetry and challenges to bean processors and distributors

Variables	Processors (n=19)	Distributors (n=90)
Information sources
Fellow actors	56.67	83.33
Radios	13.33	2.78
Internet	6.67	1.85
Brokers	23.33	0.00
Customer inquires	0.00	5.56
Print media	0.00	3.70
Television	0.00	0.93
Major challenges
Low stock turn-over	0.00	28.13
Competition	28.67	24.22
Lack / limited market	25.00	23.44
High production cost	32.15	0.00
Policies and taxes	14.28	0.00

Table 7. Marketing margin analysis for processors and distributors

Cost / margin	Processors			Tests of Ass.	Distributors
	Small scale	Medium-scale	Large scale
Selling price ($/kg)	0.83	0.99	2.08	13.03***	1.79
Purchase price ($/kg)	0.65	0.61	0.70	0.42	1.48
Price margin/Profit	0.18	0.38	1.38	13.07***	0.31
Unit cost ($/kg)	0.14	0.24	0.48	1.52	0.07
Marketing margin	0.04	0.14	0.90		0.24

Significance levels at 1%***, 5%***, and 10%*