Kenyan horticulture sector grapples with shrinking global market share
KENYA – The Kenyan horticulture industry faces mounting challenges as it struggles to maintain its share in international markets.
Rising production costs, logistical hurdles, and stiff competition from neighboring countries have raised alarms among stakeholders, prompting calls for immediate and innovative solutions.
Hosea Machuki, Chief Executive Officer of the Fresh Produce Exporters Association of Kenya (FPEAK), emphasized the growing competition from countries like Ethiopia, Tanzania, Uganda, Burundi, and Rwanda.
“For example, to lift a kilogram of vegetables from Kenya to Europe through Amsterdam in the Netherlands costs between USD 3 and USD 5 compared to between USD 1.5 and USD 2 from other Eastern African region countries to Europe. This makes Kenyan produce more expensive, with international buyers preferring horticultural commodities from other regions,” he stated.
The high freight costs are compounded by logistical complexities. The recent crisis in the Red Sea, which began in October 2023, has extended shipping times to Europe beyond 45 days, forcing exporters to rely on longer and more expensive routes through South and West Africa.
These challenges significantly impact the transportation of highly perishable goods, such as fresh vegetables, fruits, and flowers.
Kenya’s horticulture sector plays a vital role in the country’s economy, contributing Ksh. 157 billion (approximately USD 1.21 billion) in foreign exchange earnings in 2023.
Key markets for Kenya’s exports include the United Kingdom, France, and the Netherlands, which is a major hub for horticultural products in Europe.
However, the sector faces numerous obstacles, including climate change, pest infestations, high production costs, and stringent international market requirements.
“Despite growth in recent years, the industry’s sustainability is under threat. We must address these challenges to remain competitive,” said Agriculture Principal Secretary Kipronoh Ronoh.
He acknowledged the urgency of adapting to the evolving demands of global agribusiness. “In the face of stiff competition and a market that is very particular about product quality, we cannot afford to take much time in finding practical, effective, and sustainable solutions to emerging issues – if we are to remain profitable and competitive,” he added.
In response to the industry’s challenges, a 12-member National Horticulture Standing Committee was inaugurated in Nairobi.
Chaired by Agriculture Secretary Collins Marangu, the committee’s mandate includes identifying and addressing emerging issues, enhancing production, promoting research, and ensuring compliance with market requirements.
Specific focus areas include tackling the False Codling Moth infestation affecting fruits and flowers and addressing maximum residual level notifications on beans and peas exported from Kenya.
The committee will also work to diversify Kenya’s horticultural exports, as the country currently relies heavily on a limited product range and a small number of market destinations.
Other priorities include promoting stakeholder capacity building and adopting innovative technology and management practices.
“The Ministry takes cognizance of the need to keep in step with the ever-changing demands of agribusiness both locally and internationally,” Ronoh affirmed.
Be the first to leave a comment