ENVIRONMENTAL TENSIONS AND COMPATIBILITIES IN AGRIBUSINESS SUPPLY NETWORKS: A CASE OF THE FLORICULTURE INDUSTRY IN KENYA

Abstract

The paper is part of a wider study on supply networks optimisation in the floriculture industry in Kenya. It is an analysis of environmental tensions and compatibilities in agribusiness supply networks addressing the floriculture industry in Kenya. The choice of the floriculture industry is due to the fact that it is currently one of the top contributors to the country’s Gross Domestic Product (GDP).  The industry has been a subject of debate with regard to environmental sustainability. The principal research question was to find out the environmental consequences of the floriculture industry in relation to its supply networks.  The study took both a qualitative and quantitative approach in its methodology. The former involved focused interviews with key stake holders in the floriculture industry in Kenya while the later involved a quantitative approach using mainly principal component analysis (PCA). This identified environmental issues as factor two (2) described as country specific benefits. The paper concludes by making an observation that the floriculture industry needs to apply routine performance measurement and business efficiency techniques to; water, energy and wastewater management as a measure to reduce negative environmental impacts.  A recommendation is made for a moving from old cooperate social responsibility to the new sustainability communications. A further recommendation is for the flower farms to engage  into research with the Kenya Agricultural Research Institute and other research bodies in Kenya, for water stress tolerant flowers, increase hydroponics agriculture area and invest in rainwater harvesting and treatment systems and, install water water recovery/recycling plant.

Key words: Environmental tensions, Environmental compatibilities, supply networks