Breaking the Chain: How Middlemen Captured 60% of Daniel’s Onion Profits
Last season, Daniel harvested fifteen tonnes of onions. They were not ordinary onions. He had invested heavily in quality seed, followed a strict irrigation schedule, applied fertilizer at the right stages, and controlled pests with precision. The results were impressive. His field was filled with uniform bulbs, firm and healthy, ready for the market. The harvest represented months of sweat, money, and hope.
But when the time came to sell, the reality did not match his expectations. Daniel sold the onions for 40 shillings per kilogram. A few hours away in Nairobi, the very same onions were retailing for 100 shillings per kilogram. That gap – 60 percent of the value – was absorbed by middlemen who had no role in tilling, weeding, or harvesting. For Daniel, this was not simply a matter of lost profit. It was a reminder of how deeply entrenched market inefficiencies continue to rob farmers of fair returns.
Why Daniel Accepted the Low Price
Daniel did not sell at a low price out of choice. He was forced into it by circumstances beyond his control.
First, he had no storage facilities. Onions can be stored for a period if proper storage is available, but without access to warehouses or cold storage, the crop becomes vulnerable. Every day that onions sit in the open increases the risk of spoilage, sprouting, or price fluctuations. Daniel knew he had only a short window before his produce began to lose value, so he had to move it quickly.
Second, cash flow pressures weighed heavily on him. Farm workers were waiting for their wages. Inputs for the next season had to be bought. Land preparation could not be delayed. Farming is continuous, and one cycle cannot wait for another. Daniel needed cash urgently to keep operations going. Middlemen understood this urgency, and they used it to their advantage.
Third, fear was manufactured. Traders told Daniel that prices would collapse in the coming weeks. They warned him of trucks arriving from Tanzania and Ethiopia carrying onions that would flood the Kenyan market. They painted a bleak picture of oversupply that would leave him stranded with unsellable produce. With no way to verify these claims, Daniel felt he had little choice but to sell quickly, even at a poor price.
Finally, Daniel had no alternative market. He did not have direct buyers lined up. He did not belong to a strong cooperative that could help him negotiate better terms. He had no reliable access to real-time information on current prices in Nairobi or other markets. He was essentially operating in the dark, forced to trust the word of those who stood to benefit from his lack of options.
The Reality of Middlemen
Daniel does not deny that middlemen play a role. They bring liquidity, meaning they pay cash on the spot. They provide logistics, arranging transport from farms in rural areas to urban markets where demand is highest. They bridge the gap between producers and consumers.
The problem is not their existence. The problem is the way the system is designed. In Daniel’s experience, the profits of middlemen come not from adding value but from exploiting gaps—gaps in storage, gaps in information, and gaps in bargaining power. The relationship becomes less of a service and more of a tax on farmers.
What Needs to Change
Daniel’s loss was painful, but it revealed clear lessons on how to fix the system. Farmers need more than sympathy. They need structures that protect them from exploitation and empower them to engage in the market on equal footing.
One of the most important solutions is the adoption of digital marketplaces. With technology, farmers can connect directly to retailers, wholesalers, and even consumers without passing through multiple layers of intermediaries. A farmer in Kirinyaga should be able to sell onions directly to a buyer in Nairobi through a transparent platform that sets clear prices and ensures fair transactions.
Another solution lies in building strong farmer cooperatives. A single farmer has little power when negotiating with a trader. But a cooperative of hundreds of farmers can pool produce, share storage, and negotiate from a position of strength. Cooperatives reduce dependence on middlemen and give farmers collective bargaining power.
Storage is another critical need. Government-backed warehouses and cold chain systems would allow farmers to hold onto their produce until prices stabilize. Instead of panic selling at harvest time, farmers could release their produce in stages, reducing supply shocks and securing better returns.
Finally, price transparency is key. Farmers must have access to real-time market prices through SMS or mobile platforms. If Daniel had known that onions were selling for 100 shillings in Nairobi while traders were offering him 40 shillings, he would have been in a stronger position to negotiate. Information gives farmers the power to make informed decisions.
Lessons from Daniel’s Loss
Daniel lost a significant portion of his expected income on that onion crop. But he walked away with something more valuable: the understanding that farmers must demand systems, not sympathy. Pity does not pay workers or buy seeds. What farmers need are practical solutions that put them in control of their own produce.
His experience shows that agriculture in Kenya is not only about producing food. It is also about challenging structures that have historically disadvantaged farmers. It is about demanding fairness, building resilience, and creating systems that reward the producer as much as the trader.
A Call for Collective Action
Daniel’s story is not unique. Across Kenya, thousands of farmers experience the same cycle season after season. They work hard, harvest crops, and then watch helplessly as middlemen capture the bulk of the profits.
The way forward requires a collective effort. Farmers must organize, policymakers must invest in infrastructure, and agribusiness entrepreneurs must create platforms that bring transparency to agricultural trade. Middlemen do not have to disappear, but their role must shift. They should become partners in value creation, not exploiters of farmer vulnerability.
Take Away
The onion harvest that left Daniel disappointed also gave him clarity. It reminded him that agriculture must be reimagined. Farmers cannot remain at the mercy of traders who thrive on desperation. They must demand fairness, embrace technology, and work together to build bargaining power.
This is one farmer’s story, but it speaks for many. And it poses important questions. What solutions have you seen in your community? How do we ensure that those who grow the food we eat receive their fair share of the value?
Daniel’s experience shows that change is possible, but it requires all of us – farmers, policymakers, and consumers – to push for a more equitable system. The chain of exploitation can be broken, but only if we choose to break it together.
Article Credit: Wanganga (Mbugua) Daniel
Agribusiness Entrepreneur & Humanitarian/Development Professional
Follow him on LinkedIn here
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