Describe the horticulture industry
Horticultural crops in Kenya include flowers, fruits, and vegetables. The horticulture sub-sector is one of the top foreign exchange earners for the country generating approximately US $ 1 billion annually. Currently the horticulture industry is the fastest growing agricultural sub-sector and is ranked third in terms of foreign exchange earnings from exports after tourism and tea. Horticultural industry has been one of the most dynamic agriculture sub-sectors over the last 10 years. This is attributed to the high demand for the products both locally and internationally. The sector is characterized by small-scale production (80%) on horticulture plots of less than a hectare, frequently subsistence in nature.
How significant is horticulture to Kenya’s agriculture and how does FPEAK relate with farmers?
The sector Employs about 6.5million people annually majority being women (about 65-70%); contributes significantly to food security, nutrition improvements and economic growth; provides livelihood for rural households with more than Kshs 200 Billion farm gate value of produce sales annually; and more than Kshs 100 billion earnings in foreign exchange. Contributes to poverty reduction by generating income to smallholders and workers.
FPEAK helps Farmers in providing training on market requirements, market standards, sustainable farming and agribusiness. We link smallholder farmers to our members who buy from them, pack and export to various destinations. They also give advice on crops they need to grow for the export market.
How much is consumed locally? Quantify.
The local market takes up to 95% of total country’s production. Describe the local market for fruits and veg. The local horticultural market is very open; hence prices are determined by supply and demand factors as well as prevailing weather conditions. The domestic market has concentrated on vegetables and fruits, such as cabbages, kales, bananas (cooking and table), avocados, coconuts, citrus, mangoes, pineapples, plums and papaws etc. Majority of horticultural produce is consumed locally.
Demand for safe fruits and vegetables in the domestic market is on increase from the growing numbers of high end food outlets and consumers.
Lately we have seen a more aggressive fresh produce sector, what can you attribute this to?
The continued growth is attributed to the dynamic private sector and the effective facilitative role provided by the relevant public and private sector institutions. This has been brought about by intensive market promotion programmes implemented by the sector stakeholders.
Describe the weather in the last quarter of 2017? Any effect on the production?
The rains for the last quarter of the year were insufficient in many the horticulture growing zones thus affecting production, whereas in some areas the rains were stormy destroying crops too. Most water resources were not well recharged making water scare and therefore affecting crop production.
We have had interceptions leading to the banning of export of some products. Briefly tell us about that, describing the current status.
Kenyan produce has faced challenges due to frequent interceptions of exports due to documentation and the presence of regulated pests in export consignments. There has been minimal interception based on MRLs after efforts to regulate the industry paid off. This had put the over 6.5 million Kenyans who rely on the sector for income and employment at risk. Kenya’s horticultural industry has unveiled a cloud based system that will now make it possible to trace any shipment that does not comply with market standards on arrival in the export market to be traced back to source, with a view to instituting immediate remedial actions.
The industry has made strides in creating awareness and training of producers to use pesticides which are allowed. Increased surveillance by regulators and de registration of harmful pesticides.
What measures have you taken as FPEAK to tackle the issue of interception?
FPEAK led the private sector through consultative meetings to undertake implementation of critical steps towards improving compliance by strengthening official control systems such as adoption of food safety systems including a pesticide residue sampling and monitoring program, a national horticulture traceability system, and adherence to production and post-harvest produce handling guidelines outlined in the horticulture standard for produce supplied to the export and domestic market. FPEAK is a key member of the Horticulture Competent Authority structures where decision are made on issues facing the industry and therefore participates in the decision making process.
Lately we have read about the ban on avocado export. Please give us the status
The recent embargo on avocado exports was not a ban but an industry initiative to manage better the quality of avocado exports which were being shipped while immature and affecting the image of the country as an avocado exporter.
Horticultural Crops Directorate (HCD), which facilitates the development, promotion, coordination and regulation of the horticultural sub-sector in Kenya, together with the industry agreed on the timeliness for the export of hass and fuerte avocados which are the main exported avocado varieties in Kenya. The season for the same was due and thus immature fruits were finding way to the market. The Fuerte variety started getting to the market in February, and the Hass in March. The main season for Kenya avocados is March to September with Fuerte avocados available from February and Hass variety being available from March.
How much of the avocados is exported and what is the value. How much is consumed locally?
The production of avocado in Kenya is estimated at 115,000 metric tons per year About 387.2 tonnes worth Sh5.4 billion was exported in 2016
Will the embargo affect the sector? How and to what extent?
The embargo was a self ban to improve the face of the Kenyan avocado sub sector and it was done before in the last four years although some people still continued exporting immature avocados secretly thus affecting the customer perception of the kenya avocado to date with it not being a preference but the last option when other countries supplies are unavailable.
Any impact on the economy that comes with the embargo? Quantify.
On the contrally, the embargo was to improve then quality for avocado by attaining the correct maturity index and build customer confidence in the Kenyan Avocados
For several years the EAC EU EPA has been on top of discussions. What is the current status? What is outstanding?
Kenya signed her part after some the other countries raised some issues following the available options of variable geometry country and gave the country an opportunity to still get access. However, the agreement was being pushed through to the EU market quota and tariff as the rest of the EAC partners sign up . There were moves to have the EAC Summit (Presidential) to give directions on the way forward in compelling the rest of the members to sign or otherwise.
Describe the impact of Brexit to the horticulture sector
Other than the currency devalution which happened to the Sterling Pound immediately after the brexit (to the companies being paid through the Pound), the impact has not been very significant and ultimately the value of the pound stabilised. There was no significant change on trade volumes or orders based on the issue of brexit
Tell us about the National Traceability System and the progress so far.
The National Traceability System is a tool which is supposed to ensure traceability of horticultural products in kenya. This tool was developed so as to guarantee the EU market traceability of Kenyan products.
How many people does the fruits and veg employ?
The fruits and vegetable sub sector employs more than a half the workforce in the horticulture sector and almost three quarters of the smallholder horticulture producers in the country.
What promotional events are key for the horticulture industry at large and which one do you participate in.
There are quite a number of promotional events that we participate in. They include
- Fruit Logistica – Berlin Germany
- Mac Fruit – Italy
- London Produce Show – England
- World of perishables – Dubai
We participate in all these events as we look to expand market targets of our Products. However, you notice that we do not have a kenyan event where people from across the world converge in kenya to meet our companies. With the Fruits, Vegetables and Herbs Conference and Exhibition which is in Nairobi, we hope to make it as big as these world promotional events.
Describe compliance in the fruits and veg sub-sector. What measures have FPEAK taken to ensure compliance
Most of the export companies have complied to the requirements of exporting fresh fruits and vegetables. However, some companies are not able to comply due to the high costs of compliance. This provides a grey area where if the products in one reason or another the products are intercepted, its the Kenyan image on the line and not for that particular company.
One of the requirements of being an FPEAK member is to make sure you have complied with the export requirements set by the regulatory bodies in Kenya. We also support our members to comply.
Describe the usefulness of KS 1758 standard in horticulture
This standard is the code of practice for the horticulture sub sector. It provides guidelines to all the players across the horticulture value chain.
Who are the other stakeholders FPEAK partners with?
FPEAK works with a number of partners namely Global Communities, SNV, USAID, ITC, UNIDO, EU, TMEA among others.
Do you have any on going project at FPEAK currently?
At the moment we do not have any running project. However, there are initial activities starting in collaboration with COLEACP on capacity building
Any projections in regard to performance
Performance of the horticulture will go up because of improved technologies. The improved seed varieties, farming practices are aimed to improve production. The industry has shown a lot of resiliency over the last decade with positive growth in volume and value.
Where do you see the horticulture sector in five years?
With concerted growth witnessed over the last couples of years, the industry is expected to grow on average at between 5-10% especially on the fruits subsector, herbs and spices
What is the outlook for the horticulture industry?
The horticulture industry is on the upwards because of various reasons chief among them being increased population growth. This increases the demand of fresh fruits and vegetables. Another reason for growth is that other markets are opening up e.g. the launch of direct flights to America. This will increase the demand of kenyan horticultural products in the U.S.A. there are also efforts to towards south to south trade- ie the Asia
