APPLICATION OF PORTER’S FRAMEWORK TO ASSESS AQUACULTURE VALUE CHAIN IN KENYA

Aquaculture (fish farming) is an agricultural as well as fisheries activity, competing with other agricultural enterprises and artisanal fisheries for the same basic inputs. Therefore, aquaculture is subject to the same basic resource constraints that traditional agricultural activities face. The literature suggests that competition within a value chain is between chains and not individual actors. This study examined the aquaculture value chain in Kenya, assessing the entire value chain, and determining the appropriate points to participate in economically sustainable ways. The competition analysis assessed attractiveness at each stage of the chain by reviewing the rivalry in terms of five competitive forces within the Kenyan aquaculture industry; competitive rivalry, the threat of new entrants, bargaining power of suppliers, threat of substitutes and bargaining power of buyers. The aquaculture industry in Kenya is assessed using Porter’s model with marketing mix (Ps) and factor evaluation matrix (FEM). Input supply is found to be the most difficult value chain function in which to participate because it requires relatively large initial capital outlays and additional operating funds. Although fis