Chapter 1 Box 1.5 The Impact of Commercialization of Agriculture on Food Security in Kenya A study was undertaken in Kenya in the mid-1980s, at the request of the Kenyan government, to look at the impact of a new sugar factory in South Nyanza, which was contracting farmers from the surrounding area to grow and sell sugar to the factory. The study was to examine the impact of the shift to sugarcane production on food production, income, food consumption and child nutrition, both for the participating farmers and on the local community. In particular, sugar farmers were compared to non-sugar farmers. The year of the initial study coincided with a drought in Kenya. Nonetheless, the study found that there was no significant difference in the amount of land devoted to food crops between sugar and nonsugar farmers, and, in consequence, there was no difference in average calorie intake (about 94% of energy needs) nor in the size of food stores maintained. Sugar farmers cultivated more of their landholdings, partly because the main constraint on agricultural production in that part of Kenya was labour and sugar farmers could buy in labour services for land clearing, weeding, harvesting etc. from the sugar factory. Sugar farmers had higher Incomes than nonsugar farmers, but child nutrition in these families had not improved, the researchers suggest because the increase in income was not translated into an increase in healthcare infrastructure and services, which are generally provided through the state. As the initial year of the study was a drought year, it was repeated two years later. This "showed the same pattern of increased income, but no improvement in child nutrition, though increased income had led to an increase in household calorie intake. Certainly the food security of participating households had not suffered. In addition, landless labourers were seen to have benefited significantly, because the higher profitability of sugar production had led to an increased demand for the labour services of the landless. Source: E.Kennedy, 1989. Increases in cash cropping need not affect women's income adversely, but where it does, perhaps because women have less land to cultivate, or they are required to put some of their FWhere food crop production is reduced, there may also be a negative effect. Income in kind, i.e. subsistence food production is more likely to be used for family consumption than cash income. The agriculture sectors of most countries are already highly integrated into the exchange economy. True subsistence production is rare except in some of the poorest and least developed regions of the world. This means that in many countries the food security of the most vulnerable is often heavily dependent on the effective functioning of markets. This is at variance with the stylised picture often presented of small farmers. It is important that policy makers are aware of the vulnerability of the poorest to breakdowns in food market operation and the risks they face when moving towards greater market integration. There is often a good case for encouraging greater domestic production of food at a national level, particularly for poorer food deficit countries. It may be the most direct way of increasing the entitlements of the poor. However, to put self-sufficiency, as a matter o. principle, above broader issues of food security, at both the household and national level, could lead to loss of entitlements which the poor can least afford. 26-