Page 12 - STAT November 2022 for Magzter
P. 12

COVER STORY




         key driver for the flower industry in many
         African nations, especially in Kenya and
         Ethiopia, it has also laid the foundation for
         the perishables sector that includes fruits
         and vegetables.
           Be it meat, seafood, or fruits and
         vegetables from Kenya, Tanzania, South
         Africa, Uganda, Tunisia, Zimbabwe,
         Zambia, and Egypt, perishables make their
         way into plates across the globe including
         the Middle East, Far East, the EU, and the
         UK. With 60% of its people engaged in                                  Maintaining cold chain efficacy is
         agriculture and related industries and with   Major players,        paramount to getting the best price
         an export worth of $52 billion for food   entrepreneurs,            for fresh produce manufacturers and
         exports, Africa has the potential to be the   and the               exporters and this is where most
         world’s breadbasket.                                                entrepreneurs believe that there is ample
           The European Union accounts for         government                room for improvement.
         getting the largest portion of Kenyan     need to establish            Lucy Njeri Kuria, Managing Director at
         horticultural exports with 45%  comprising                          Saipei Foods in Kenya, who exports fresh
         cut flowers, French beans, snow peas, and   consolidation           fruits and vegetables to Spain, Netherlands,
         other Asian vegetables. In a bid to diversify   and storage         France, Turkey, Dubai, Hongkong, and
         its exports, Kenya has held bilateral talks   centers around        Malaysia by sea, says air freight has
         with gulf nations this year and is keen to                          become very expensive post-Covid.
         export fruits, spices, and plants as well   the existing               She says, “Yield was good this year and
         apart from flowers to eliminate trade     production areas.         volumes have returned. Next year more yield
         barriers and logistical logjams.                                    is anticipated because of newer orchards. We
           Patrice Ngenga, Technical & Standards   This would ensure         majorly export avocados and the demand
         Officer at the Fresh Produce Exporters    that the produce          is good. China's opening up will definitely
         Association of Kenya (FPEAK) which                                  increase demand for Kenyan avocados.
         has 210 members, told the publication,    is kept in the cold       Logistics costs remain very high in Kenya.
         “Kenya’s major market destination is EU,   chain as soon as it      Perhaps the inland logistics for avocados
         UK, UAE, Australia, China, and South      is harvested.             can be done via train and not road. The
         Africa. Most of the fruits and flowers                              government can invest in plug-in points on
         are shipped through air freight with             PATRICE NGENGA     the train to maintain the cold chain.”
         fruits mainly going through sea freight.     FRESH PRODUCE EXPORTERS   Ngenga of FPEAK adds, “Major
                                                         ASSOCIATION OF KENYA
         Kenya mainly exports french beans, snow                             players, entrepreneurs, and the
         peas, sugar snaps, broccoli, chilli, roses,                         government need to establish
         carnations, avocado, passion fruits, and   flowers are exported by sea from Kenya.”  consolidation and storage centres
         mangoes. Kenya earned $1.39 billion in   Kenya has also opened an alternative   around the existing production areas.
         2021 and the figure is expected to surpass   air freight route from the Kisumu   This would ensure that the produce is
         2021 earnings for the year 2022 since the   International Airport this year, which saw   kept in the cold chain as soon as it is
         volumes have returned to pre-pandemic   expansions that included cargo handling   harvested. The standard gauge railway
         levels and surpassed. The demand for   and cold storage facility creation via   should be fitted with gensets to provide
         fruits and herbs is growing widely;   public private partnership mode.  power for refrigeration units during
         specially bananas, avocados, passion   However, challenges abound for the   transit. The fresh produce sector has
         fruits, basil, rosemary and thyme.”  fresh produce sector in Kenya. While   been engaging with the government and
           Kenya is also looking to get into other   labour is readily available in Kenya, the   other sector players to create capacity for
         markets like China, South Korea, India, and   cost of labour has increased by around   other airports in the country to handle
         Jordan among others. However, Ngenga   40% in the major towns. Other challenges   fresh produce. As a result of this, there
         says that a major shift to the sea route is also   facing the horticulture sector are; high-  have been direct cargo flights from Moi
         being witnessed for the fruits and vegetable   cost of production due to increased cost   International Airport, Mombasa to
         sector post-pandemic. “The Covid-19   of inputs, increased pests, and disease   Sharjah International Airport, UAE which
         pandemic saw the cost of airfreight increase   pressure, inadequate compliance to market   had on board 20 tonnes of fresh produce
         by 40%. Ocean freight is increasingly   requirements on food safety and plant   and 23 tonnes of seafood on board. We
         becoming a viable option since it is both   health, weak traceability system, and less   also had a cargo flight from Kisumu
         carbon and cost-efficient as compared to   equipped regulatory authorities to enhance   International Airport to the EU, which
         air freight. About 55% of fruits and 1% of   compliance to market requirements.  had five tonnes of chilli on board.”

       10 LUA                                                                           NOVEMBER - DECEMBER 2022
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