Kenya’s horticulture sub-sector: A view of voluntary standards from Africa Panel session on

1. Kenya’s horticulture sub-sector: A view of voluntary standards from Africa Panel session on Company specifications, international standards and national regulations Tuesday, 4th November 2008 (10 am to 1 pm )

2. PRESENTATION CONTENT Background on Kenya’s Horticulture Challenges of stds & How Kenya is addressing them Conclusion Grown under the SUN 2

3. WORLD AFRICA POSITION OF KENYA

4. A. BACKGROUND ON KENYA’S HORTICULTURE The World (2007) GDP was $ 54.3 trillion (185 countries) and population of 6.6 billion (207 countries). Kenya = ranked 34 with 37.531 million population and ranked 79 with GDP of $29.509 billion. Kenya unlike many African States is not endowed with minerals, thus relies mainly on Agriculture as the driver of the economy. Agriculture contributes 24% of Kenya’s GDP, of which Horticulture contributes 13% of Agricultural GDP. Agriculture plays a major role in the realization of the Millennium Development Goals (Esp. MDG 1, on poverty reduction). Employs about 80% of the Population. Horticultural exports is no.1 foreign exchange earner.

5. HORTICULTURE SUB-SECTOR OVERVIEW • Kenya has good reputation for supplying high quality horticultural produce. • Kenya (2007) exported over 403,000 tons of horticultural produce valued at over KShs. 57 Billion (over $ 900 million), over 95 % to the EU. • Less than 10% of all horticultural production is exported, the rest is consumed locally. • The sub-sector employs directly and indirectly millions of persons (some estimates put it at over four million), majority of whom are women. • Horticulture is considered one of the economic pillars in agriculture under Vision 2030 (innovative and commercially oriented) and provides food security.

6. Horticultural Exports – Volume & Value in KShs (KShs102 = 1 Euro) Avocado Sorting & Grading Pack-house Grading of Vegetables

7. Challenges of market access • Multiple levies • Multiple audits. • Interception of produce in the international market. • Accreditation of strategic facilities for market access. • Lack of awareness on market requirements. • Limited number of farmer centres offering specific training and information. • Various issues related to good agricultural practices.

8. B. Challenges of stds & How Kenya is addressing them • The EU markets in the last 10 years has been characterized with rapid evolution of legislations and market standards. • The EU regulations are actually related to market standards on issues such as traceability, MRLs, pests. • This has meant adjustment of national systems both public and private to be able to ensure competitiveness of Kenya’s horticultural produce. 8

9. Summary of strategies to deal with stds This can be summarized in six headings: Capacity building of human resources and equipment Accreditation of business support facilities e.g. KEPHIS, Africert Awareness creation, information sharing & dissemination and developing common strategies Risk assessment and development of systems to deal with risk Domestication of international stds, codes of practices and regulations e.g. KenyaGAP Market diversification e.g. to USA, Japan, Dubai 9

10. The Government’s Motivations to support stds • To protect and sustain market access for Kenyan horticultural products to high value international markets. • Export to these markets would provide economic benefits to Kenya’s small-scale producers i.e. secured or even enhanced revenues. • Association with internationally recognized standard would also help to sustain its international reputation, It would make Kenya’s produce to be like a brand. • Would address good agricultural practice, but also health & safety, environmental and social practices, and help improve these in Kenya. • Will help sustain Kenya's international reputation as a producer of quality products, and thus the market for its products = BRAND KENYA. 10

11. Current Status of Stds • In the recent future ( 2 to 3 years), Kenya’s horticultural exports to the international market have been characterized by rapid growth of certified growers. • In 2007, 606 were recognized certified suppliers with EurepGAP/GlobalGAP certification with over 180 recorded interceptions related to SPS related non-conformances mostly due to quarantine pest especially Helicoverpa. • An estimated 2200 growers certified for GlobalGAP under option one and two (64 farmers groups under option two). • Domestic awareness on KenyaGAP standard is on high gear, with a certain supermarket (with 10 million euros turnover related to horticultural sales) in Kenya implementing it on farms they collect produce from. 11

12. C. CONCLUSION • Although the government’s role has been facilitative it has recognized the need to participate actively where necessary on issues of markets standards as it borders on reduced incomes by our growers, hence the setting of structures such as National Taskforce on Horticulture to open level platforms for discussions related to specific issues such as MRLs, traceability, interceptions due to pests, food miles and others have brought positive growths to these sub-sector and common strategies/understanding. • Issues related to modernization of regulations have not be strongly handled during these phase although meetings to discuss relevant regulations e.g. revision of the Agriculture Produce [Export] Act, CAP 319 plus the HCDA order 2006 have received attention and will improve how market standards are handled and managed.

13. CONCLUSION • Lets not forget issues that will affect how horticulture will be done, despite the fact that there will be markets to sell these produce, there may not be enough water to assure continued production. Prudent use of water, new ways to send products, management of the environment and manpower management issues is the key to sustainance of these markets for a country like Kenya.

14. THANK YOU FOR LISTENING TO THIS PRESENTATION For more information contact: MANAGING DIRECTOR, Kenya Plant Health Inspectorate Service (KEPHIS) & CHAIRMAN, National Taskforce on Horticulture P.O. Box 49592-00100, Nairobi Tel: 0722-516221; 0734-874141 Fax: 254-020-3536175 Email: director@kephis.org Website: www.kephis.org