Horticulture successes in Kenya. What are farmers getting?

Horticulture exports by Mwangi Mumero

Over the last five years, Kenya has exported horticultural products valued Ksh 31 billion ($428 million), six times the value of imports at Ksh 4.8 billion, a new USAID report says.

Growth in exports shot at an annual rate of 14.3 per cent from Ksh 3.9 billion in 2006 to Ksh 6.8 billion in 2010 showing the sub-sector continued importance to the country economy.

Average value of exports over the last three was Ksh 6.78 billion ($ 94 million), according to the report entitled Kenya Intra-Africa Trade in Horticulture.

Horticultural imports into the country increased at a rate of 26.2 per cent from Ksh 0.6 billion in 2006 to Ksh 1.4 billion in 2010.

The main market destinations for Kenyan horticultural exports by value were Somalia (64 per cent), Uganda (10 per cent), Tanzania (8 per cent) and South Africa (5 percent).

The rest went to Europe, Middle East, Far East and the United States

The sub-sector continues to be an integral part of the country‘s economy expected to grow at 5.6 per cent in the 2010/2011, period mainly driven by agriculture among other activities.

The Horticultural sub sector is the fastest growing industry within the agricultural sector, recording an average growth of 15 to 20 per cent per annum.

It contributes positively to wealth creation, poverty alleviation, and gender equity especially in the rural areas.

The sub sector employs approximately 4.5 million people countrywide directly in production, processing, and marketing, while another 3.5 million people benefit indirectly through trade and other activities.

Of the main horticultural exports, cut flowers are the most highlighted although they contribute 3.8-8.3 per cent of the volumes and value of exports respectively.

Cut flowers and cuttings account for 90 percent of the exports of which 44 per cent is exported to South Africa.

On the other hand, Kenya is a net exporter of flowers to the European Union, the Middle East and the Far East and has seen major growth in the last 5 year period.

According to the Kenya Flower Council (KFC) cut flowers earned the country Ksh 19.4 billion in 2010 up from Ksh 16.5 billion the previous year.

KFC Chief executive officer Jane Ngigi says the future of the sub-sector is bright with the strengthening of international currencies mainly the Euro and the Sterling Pound. Challenges however remain for this fledging industry that is mainly concentrated near Lake Naivasha.

“Flower businesses have been affected by volatile fluctuation in currencies. Kenya exporters are paid in Euros or sterling pound but inputs are paid in dollars. This tends to eat on the profits”, observed Ngigi.

The flower sector has in the last year witnessed an upsurge after the traumatic volcanic eruptions in Iceland that saw major airlines cancel flights to and from Europe, leading to loss of Ksh 300 million ($ 3.75 million) daily, mainly through undelivered flower orders.

But even with the huge flower market in Europe and other Asian countries, the bulk of horticultural exports are regional – mainly in COMESA and SADC countries.

The East African Market has also provided Kenyan farmers with a huge and ready market of fruits, fruit juices and fresh vegetables.

Exports of fresh passion fruits to Uganda and fresh mango to Tanzania have increased significantly over the past three years according to the report. Fresh fruits contributed 16.5 percent and 1.2 percent of the horticultural exports volumes and value respectively.

Of the fruits, passion fruits took the lion’s share of the exported at 44 per cent with 67.4 percent being exported to Uganda. Mangoes comprised 32.2 per cent of the volumes of which 97.8 per cent were exported to Tanzania.

“We have done surveys in Uganda and Rwanda to obtain vital information necessary for our exporters to access these markets. We are also moving to South Sudan and plan to hold an exhibition there for marketing purposes. ”, observes Edward Maina, Horticultural Crops Development Authority (HCDA) marketing manager. HCDA is a government body that regulates and markets the sub-sector.

Processed fruits also earned huge incomes to farmers over the five-year period contributing 37.7 percent and 12.4 percent in volumes and value respectively. Processed fruits valued at Ksh 3.8 billion, more that four times the value of imports at Ksh 0.4 billion.

For their part processed vegetables accounted for 13 per cent and 15.5 percent of the volumes and value respectively with a growth rate of 7.7 per cent in value. During the five-year period, Kenya exported processed vegetables worth Ksh 4.7 billion with the value of imported at Ksh 0.5 billion.

Among the processed vegetable exports have been tomato products.

“Tomato products are the second largest exports among the processed vegetables, meaning they have a good base and farmers have a good reason to invest in tomato farming”, noted Dr Romano Kiome, the Permanent Secretary in the Ministry of Agriculture recently.

Dr Kiome added that that the government has allocated Ksh 15 billion for the improvement of irrigation that will boost horticultural production.

Fresh vegetable on the other hand contributed 18 percent and 8.3 per cent of the volumes and value respectively with a growth rate of 22.5 per cent in value.

During the five year period, the country exported vegetables worth Ksh 2.5 billion while making imports worth KSH 1.1 billion. The country exported carrots, Asian vegetables and high value vegetables. The country imports potatoes and onion.

Diseases and poor prices have hampered potato farming mainly in Central Highland and Meru Country.

Potato imports from Tanzania have been increasing as potato production in Kenya declines. Irish potato is the second most important food crop after maize in the country and solving production bottlenecks will once again make Kenya the regional supplier.

According to Tegemeo Institute of Agricultural Policy and Development, a local think tank at Egerton University in Kenya, expanding the regional horticultural market and integrating smallholder farmers will boost exports in future.



But key investments in technical production, market infrastructure and legal and regulatory environment are needed for this to be realized, Tegemeo adds.



There should be active participation of the government with donors and private sector.



Crucially, improved efficiency especially in loading and unloading is necessary in reducing costs and improving hygiene in the market.



At the same time, making information easily available on prices and volumes by grade of product, will increase market transparency and further attract customers.



The Tegemeo Institute research done by David Tschirley and colleagues further adds that improvement of secondary and tertiary roads is vital in modernizing the sub-sector.



But even with their huge potential as a foreign exchange earner, it is important to note that the bulk of the horticultural products are consumed locally.

Over 90 per cent of the vegetables, 97 percent of the fruits, 87 per cent of the spices and herbs are consumed domestically making horticulture a vital cog in ensuring food security in the country. (ends)