Horticultural production is a source of livelihood for many smallholder farmers in Kenya. However, the potential is hampered by high postharvest losses estimated at 40%–50% in fruit and vegetables. The losses are attributed to various factors including postharvest handling, lack of storage technologies, lack of processing facilities, and poor market access. Consequently, some farmer groups have resorted to aggregation of their mangoes and engagement in small scale processing of mangoes into shelf stable products that cannot be marketed widely. In order to bridge the lack of capacity of smallholder farmers, the University of Nairobi's postharvest project with support from the Rockefeller Foundation's YieldWise Initiative seeks to upgrade two fruit aggregation centers by creating awareness and providing existing, applicable, and proven postharvest loss reduction technologies such as tunnel solar driers, brick coolers, charcoal, and CoolbotTM cold storage technologies. However, the potential economic impact of the proposed investment is not known. Hence, this study aimed at assessing the potential economic returns to investment in postharvest loss reduction technologies among smallholder mango farmers in Embu County of Kenya. A critical overview on methods employed in analyzing returns to investment in agricultural technologies has been provided. The economic surplus model was used to estimate the potential benefits of the investment. Using the cost–benefit analysis (CBA) approach, a maximum adoption rate of 10% over 10 years, and a 10% discount rate, it was found that the investment was worthwhile. The NPV was US $ 1.3 billion. The IRR and BCR were 28% and 4.29, respectively. Sensitivity analyses showed that the investment is viable at higher adoption and lower discount rates indicating the need to promote the technologies even under more difficult macroeconomic conditions.

Thrips,Frankliniella occidentalis(Pergande), is a major invasive pest that causes extensive yield losses in French bean and tomato in Kenya. Thrips management is based on the application of pesticides. In addition to increased environmental risks associated with pesticides, frequent use of these chemicals increases production costs and pesticide resistance. Furthermore, exports are restricted due to non-compliance to maximum residue levels in important consumer export markets, especially the European Union (EU). This study was conducted to estimate the potential benefits of the effectiveness of theicipe-developed strategy for control of western flower thrips before dissemination of the technology in Kenya, using the economic surplus model. We calculated the benefit–cost ratio, the Net Present Value (NPV) and the Internal Rate of Return (IRR) using Cost–Benefit Analysis (CBA). Assuming a maximum conservative adoption rate of 1% and a 10% discount rate for the base deterministic scenario, the NPV of the research was estimated at US$2.2 million, with an IRR of 23% and a BCR of 2.46. Sensitivity analyses indicated that the NPV, IRR and BCR increased at an increasing rate as adoption rates increased. However, as elasticities of supply and demand increased, the NPV, IRR and BCR increased at a decreasing rate. The findings demonstrate that farmers from developing countries can gain when they obtain access to suitable pest management innovations such as integrated pest management technologies. Consequently, investment in IPM technologies for suppression of western flower thrips should be enhanced.

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