Source: Business Daily (Nairobi) by Allan Odhiambo
It may have had its share of breath taking scares across the year, but players in the robust horticulture industry are looking up to success in the coming year.
First to rattle the sub-sector was the food miles concept that threatened to lock local producers from key markets especially in Europe on grounds that shipments from far flung areas were contributing to global warming through carbon emissions.
Proponents of this concept argued that to discourage such threats of environmental degradation, all produce brought in through long haulage should be accorded cautionary labels such that buyers 'skipped them' for locally produced ones.
Then came a strengthening shilling against major international currencies such as the dollar that eroded producers' earnings from exports prompting a debate over possible switch to other currencies to avoid further damage.
That aside, there were the jitters of expiring preferential trade agreements that would have disrupted export trade with the EU come December 31.
"It has been a tough year for exporters" Hasit Shah, the vice chair at the Kenya Flower Council (KFC) says.
Luckily the industry 'lived through' these scares and analysts say it could be headed for firmer performance compared to last year, going by the strong run over the first half of this year.
The carbon miles debate was fizzled out by the fact that its proponents would not scientifically justify their claims against the long haul products while the fears of trade disruptions were put to rest after Kenya and other East African Community (EAC) member States initialised new trade deals with the EU waiting the signing of comprehensive Economic Partnership Agreement (EPA) by 2009-guaranteeing continued duty/quota free access of their goods into Europe.
The industry's spirits are further buoyed by statistics from the Leading Economic Indicators for September released by the Planning and National Development Ministry that showed the industry's earnings hit the Sh31 billion mark as at June, representing a 57 per cent growth over a similar period last year backed by a strong demand for cut flowers in key international markets.
Kenyan horticulturists have particularly cashed in on sharp changes in weather patterns over Europe where the bulk of exports are taken. Traditionally, the onset of summer in Europe towards June spelt lower sales for Kenyan horticultural exporters as their counterparts in the EU upped own business in the warmest months for the northern hemisphere.
This year, however, unstable weather patterns attributed to global climate change has set back horticultural production programmes in regions such as the UK, and that has meant a stronger than usual demand for imports from countries like Kenya.
Analysts now predict that backed by this massive growth, the industry is likely to surpass the Sh43 billion full-year earnings for last year.
"We look up to a very successful 2008 because massive transformations are being carried out," Jane Ngige, the chief executive officer at KFC told Business Daily.
The CEO says growth in the industry is likely to come from stronger audit of operations especially among the upcoming smallholder producers which would reduce the rate of rejection of goods turned up from trading in key markets.
Faced by stringent market safety requirements players in the industry have moved to adopt practices such as Kenya Good Agricultural Practices (Kenya-Gap) protocol to counter the threats with an aspect of self regulation now ensuring the country's producers and exporters maintained an emphatic run in key markets abroad.
Based on the successes of this concept of self regulation, a recent survey by the Food and Agriculture Organisation (FAO), titled : "Bridging the Gap Between Food Safety Policies" labels the Kenya horticulture industry as a global illustration of how standards can be used to tackle competition in key markets.
The UN agency said that through investments in high-care processing facilities, private laboratories, full supply chain traceability, improved sanitation, storage systems and Hazard Analysis and Critical Control Point (HACCP) measures, the leading firms in Kenya's fresh produce industry have focused their attention and resources on premium-quality market segment and reaped significant benefit.
"In spite of more stringent standards applied by certain importing countries, some industries and supply chains in low-income countries have maintained or enhanced their competitiveness and market share," the document reads in part.
This concept of self regulation in Kenya has been bolstered by the recent accreditation of the Kenya Plant Health Inspection Services (KEPHIS) to carry out inspections of exports on behalf of the EU.
Previously, exports were checked for standards locally and later re-examined in Europe.
A step to harmonise the inspection procedure has however improved fortunes for Kenyan exporters in that their produce is only inspected once by Kephis and a binding certificate, application even in Europe, issued to them.
It may have had its share of breath taking scares across the year, but players in the robust horticulture industry are looking up to success in the coming year.
First to rattle the sub-sector was the food miles concept that threatened to lock local producers from key markets especially in Europe on grounds that shipments from far flung areas were contributing to global warming through carbon emissions.
Proponents of this concept argued that to discourage such threats of environmental degradation, all produce brought in through long haulage should be accorded cautionary labels such that buyers 'skipped them' for locally produced ones.
Then came a strengthening shilling against major international currencies such as the dollar that eroded producers' earnings from exports prompting a debate over possible switch to other currencies to avoid further damage.
That aside, there were the jitters of expiring preferential trade agreements that would have disrupted export trade with the EU come December 31.
"It has been a tough year for exporters" Hasit Shah, the vice chair at the Kenya Flower Council (KFC) says.
Luckily the industry 'lived through' these scares and analysts say it could be headed for firmer performance compared to last year, going by the strong run over the first half of this year.
The carbon miles debate was fizzled out by the fact that its proponents would not scientifically justify their claims against the long haul products while the fears of trade disruptions were put to rest after Kenya and other East African Community (EAC) member States initialised new trade deals with the EU waiting the signing of comprehensive Economic Partnership Agreement (EPA) by 2009-guaranteeing continued duty/quota free access of their goods into Europe.
The industry's spirits are further buoyed by statistics from the Leading Economic Indicators for September released by the Planning and National Development Ministry that showed the industry's earnings hit the Sh31 billion mark as at June, representing a 57 per cent growth over a similar period last year backed by a strong demand for cut flowers in key international markets.
Kenyan horticulturists have particularly cashed in on sharp changes in weather patterns over Europe where the bulk of exports are taken. Traditionally, the onset of summer in Europe towards June spelt lower sales for Kenyan horticultural exporters as their counterparts in the EU upped own business in the warmest months for the northern hemisphere.
This year, however, unstable weather patterns attributed to global climate change has set back horticultural production programmes in regions such as the UK, and that has meant a stronger than usual demand for imports from countries like Kenya.
Analysts now predict that backed by this massive growth, the industry is likely to surpass the Sh43 billion full-year earnings for last year.
"We look up to a very successful 2008 because massive transformations are being carried out," Jane Ngige, the chief executive officer at KFC told Business Daily.
The CEO says growth in the industry is likely to come from stronger audit of operations especially among the upcoming smallholder producers which would reduce the rate of rejection of goods turned up from trading in key markets.
Faced by stringent market safety requirements players in the industry have moved to adopt practices such as Kenya Good Agricultural Practices (Kenya-Gap) protocol to counter the threats with an aspect of self regulation now ensuring the country's producers and exporters maintained an emphatic run in key markets abroad.
Based on the successes of this concept of self regulation, a recent survey by the Food and Agriculture Organisation (FAO), titled : "Bridging the Gap Between Food Safety Policies" labels the Kenya horticulture industry as a global illustration of how standards can be used to tackle competition in key markets.
The UN agency said that through investments in high-care processing facilities, private laboratories, full supply chain traceability, improved sanitation, storage systems and Hazard Analysis and Critical Control Point (HACCP) measures, the leading firms in Kenya's fresh produce industry have focused their attention and resources on premium-quality market segment and reaped significant benefit.
"In spite of more stringent standards applied by certain importing countries, some industries and supply chains in low-income countries have maintained or enhanced their competitiveness and market share," the document reads in part.
This concept of self regulation in Kenya has been bolstered by the recent accreditation of the Kenya Plant Health Inspection Services (KEPHIS) to carry out inspections of exports on behalf of the EU.
Previously, exports were checked for standards locally and later re-examined in Europe.
A step to harmonise the inspection procedure has however improved fortunes for Kenyan exporters in that their produce is only inspected once by Kephis and a binding certificate, application even in Europe, issued to them.
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