CLIMATE CHANGE and EQUITY: Buy Kenyan roses, Ghanaian chocolate this Valentines Day!

DFID have issued an important press release, keeping pressure on consumers to recognise the importance of balancing the social aspects of trade with the environmental ones. Douglas Alexander says: "And buying African goods shouldn't give you too many worries about your carbon footprint. Roses flown in from Africa can use less energy than those grown in Europe, because they're not grown in heated greenhouses which emit relatively high levels of carbon dioxide. The money cost of these emissions has been calculated at £4.5 million, which is a small fraction of the total value of the £52 million flower trade with Kenya. It is important that we continue to support the growth of poor countries' economies in the way that we shop. This Valentine's Day provides a golden opportunity to do that. " There is a presentation here, which is schmaltzy but lets hope puts the lead back into the trade pencil!

Source: DFID

International Development Secretary Douglas Alexander today encouraged romantics in the UK to buy Kenyan flowers this Valentine’s Day.
Farmers and flower producers have been working extra hard to get flowers to market in time for Valentine’s Day given the unrest in the country.
Kenya is the lead exporter into the European Union of cut flowers. Roses constitute more than 70% of Kenya’s flower exports and by meeting demand for roses used on 14 February and Mother’s Day (March 2) exporters earn more than the rest of the year’s sales combined. The Kenyan economy is already under great strain given the political situation and a dip in exports could make the country’s problems worse including many further job losses.
Douglas Alexander said:
"It’s encouraging to see that more and more people recognise the benefits of buying products from developing countries as a way of supporting the poorest people on this earth. Everyone can make a difference on Valentine’s Day including to the lives of Kenyan farmers who, given the current political crisis in the country, have been working so hard in such difficult conditions to ensure their flowers reach the market in time for 14 February.
"Buying flowers from developing countries makes it easier for people there to make a decent living. It’s also important to remember that flowers flown in from Kenya aren’t grown in heated greenhouses so they use less energy than most of those produced in Europe."
Notes for Editors
The Kenyan horticulture sector is the number two foreign exchange earner after tourism bringing in more than $250 million per annum and employing 100,000 people directly and more than 2 million indirectly. It is estimated to impact the livelihoods of 4 million people.
Kenya is the largest supplier of cut flowers to the EU representing 32% of imports. The UK is one of the world’s biggest importers of flowers and almost a third of what we import comes from Kenya.
For more information on where you can source flowers from Kenya.
Trade is the most effective method of reducing poverty and the UK continues to be firmly committed to helping developing countries trade their way out of poverty.
The Department for International Development continues to be a strong supporter of the growing fair and ethical trade sector (positive impact on 7 million certified producers and their families through higher prices, greater certainty, and access to markets) but shoppers also have a huge role to play. Every two years, UK shoppers have doubled the amount of Fairtrade goods they buy.
A 2007 study shows that emissions produced by growing flowers in Kenya and flying them to the UK can be less than a fifth of those grown in heated and lighted greenhouses in Holland.

CLIMATE CHANGE AND UK CONSUMERS: animals remain turn-on for Brits, and climate a turn-off

Co-op accuses its rivals of lazy thinking again as it proves climate indifference is the norm, and the Brits fabled animal love is a dominant force. Is the Coop going to poach Jamie Oliver from battery-hen powered Sainsbury?

Source: "Shoppers care more about animals than climate" by The Guardian,
Animal welfare and fair trade are far bigger concerns to UK consumers than climate change, according to a huge new poll of UK shoppers.
Only 4% rate climate change as their top ethical priority, compared with 21% who think animal welfare is the most important issue and 14% who rate fair trade as their key concern.
The findings come from a survey conducted by the Co-op grocery business that has been used to draw up a "responsible retailing" policy, designed to reflect shoppers' concerns.
The Co-op claims the survey is the biggest poll of consumer ethics ever undertaken. The supermarket group analysed responses to a detailed, four-page questionnaire from more than 100,000 members and customers. It intends to use their responses to guide changes to the way it does business.
As a result of the survey the Co-op is halting the sale and use of eggs from caged hens with immediate effect. The 2,700-strong supermarket chain is also ensuring all its own-brand tea - including its 99 brand - becomes fair trade. The customer-owned grocery business, which made all of its coffee fair trade five years ago, intends to absorb the extra costs so that prices do not go up.
Three main categories emerged from the survey as the key areas of concern: ethical trading (27%), animal welfare (25%) and environmental impact (22%).
Shoppers' worries about the environment are focused on issues other than climate change. Twice as many are concerned about the amount of packaging on their food as think global warming is the most important issue.
As a result, the Co-op is changing the shape and weight of its 26 own-brand wine bottles to save 450m tonnes of glass a year. It has also increased its list of prohibited pesticides from 32 to 98.
Among those who believe ethical trading is the most important issue, 14% make fair trade their priority, with 8% supporting "general ethical trading" policies.
Some 4% pinpointed animal testing as the ethical issue they believe is the most important facing consumers - the same proportion as want more attention paid to climate change. Paul Monaghan, the Co-op's head of ethics, said the group believed that consumers' apparent indifference to climate change was likely to be the result of believing they have little influence to force change: "They may believe they are powerless on climate change. People can choose to buy Fairtrade or Freedom Food labels, but there is no carbon label yet. We think shoppers see climate change as an issue for corporations and governments."
Peter Marks, chief executive of the Co-operative Group, said the organisation would not scale back its support for the global drive to reduce greenhouse emissions despite its members' seeming ambivalence to the issue. He said they needed more information, adding: "Over the next decade we will work even harder to help customers understand the threat we face and the actions we can take."
The Co-op launched its vast consultation exercise last September. It aimed to discover which issues meant most to its customers and to make it clear that some seemingly sensible changes had negative repercussions that it would not support. The grocer pointed to the aeroplane stickers used on air-freighted exotic fruit and flowers by Marks & Spencer and Tesco and accused its rivals of "lazy thinking".
The Co-op said it would never introduce such stickers because they could have a detrimental effect on growers in less developed countries and the carbon produced by importing from African farmers can be a fraction of that produced by farmers in Europe because of the heating and lighting required.
The Co-op has long been at the forefront of the ethical debate. It was the first major retailer to champion fair trade, when it put Cafédirect coffee on its shelves in 1992, and introduced the UK's first fair trade bananas in 2000.
In recent years, however, supermarket groups have increasingly been seeking to underline their credentials as planet-friendly businesses. Marks & Spencer has set out a 100-point Plan A eco-strategy while Tesco has set out a "community plan" and has pledged to "become a leader in helping to create a low-carbon economy". Tesco is also leading an initiative to come up with a carbon-labelling scheme and last year announced £25m of funding for a new Sustainable Consumption Institute at Manchester University.
Monaghan said the Co-op was now "raising the bar" with its ethics policy

KENYA's poor farmers hard hit by political unrest

Mounting evidence that Kenyan political situation is harming the country's exports and that this isplacing costs squarely on the small-scale farmers involved with the export horticulture trade. Most of these farmers are GLOBALGAP certified - but the realy question is - will this certification count for anything in the market after political storms have stilled?

Source: The Nation (Nairobi)
Horticultural farmers in Murang'a North and South Districts have lost millions of shillings since the post-election unrest begun.
Most affected are French beans growers who have depended on the crop as the sole source of income for years.
Thousands of tonnes have gone to waste due to lack of markets, while middle men take advantage of the situation to give the farmers a raw deal.
Farmers have to contend with the situation and watch helplessly as their produce goes to waste, due to lack of storage facilities and lack of access to markets.
The area has about 23 French beans buying centres.
Before the skirmishes, each of the centres was handling an average of 1,200 kilogrammes of the produce daily.
"We invested heavily, hoping to catch good markets in January and February that would help us raise school fees for our children and meet other requirements," said Ms Agnes Wanjira.
Like many other farmers in the upper side of Murang'a North District, she diversified from coffee to French beans' farming, due to better and faster returns.
Farmers say major buyers have not bought the produce since the day of elections. Though the farmers would have wished to sell the beans to brokers at throw away prices, the middlemen traders could not cope with the high supplies and only bought a little.
"Most of these traders sell in the normal local markets and could not buy in bulky. They offered as little as Sh10 per kilogram compared to major buyers like Frigoken Company that paid Sh30 per kilo of the beans," said Ms Wanjira from Mugoiri.
The beans require frequent picking to maximise production and turn into waste if not harvested in time. After picking, they need to be stored in a freezer, something the farmers do not have.
"Buyers tell us they would be taking a risk in buying the beans since they are not guaranteed of delivering the purchases to their stores and other destinations," Mr Irungu said

DOMINO EFFECT? Regional economic cost of KENYAN problems becoming apparent

Kenya's position as a hub for transport and trade in East and Southern Africa is aptly demonstrated by the current problems and subsequent disruption. Fisheries companies in neighbouring Uganda cannot access packaging boxes let alone export through the usual channels into SOuth Africa. Compounding this are price rises as oil costs increase owing to distribution problems. The spectre of snowballing poverty is emerging. From an economic perspective, it is during times of shocks that an economy relies on its key export sectors to continue and to help drip-feed the rest of the economy through the mire. Yet, it seems a mixture of the hub business model and the reliance of many of the companies at the vanguards of fragile economies on Kenya's throughput might produce a catastrophic domino effect starting with the richer and more reliable internationally-trading companies. What this means for the majority of poorer, locally trading and subsistence farmers and workers remains unclear but is not for continued unfettered growth. Let's hope this forecast is wrong.

Source: "Uganda: Three Fish Exporters Suspend Operations", New Vision (Kampala)
Macrines Nyapendi
THREE fish exporting companies have suspended operations due to high production costs caused by the post-election violence in Kenya. The plants are Oakwood based at Kansensero landing site, Wild Catches in Butiaba, Lake Albert and Marine and Agro.
"Skyrocketing fuel prices and lack of packaging materials has forced us to temporarily close down. If the violence in Kenya continues, all processors will halt operations," a source said.
Solid packaging boxes imported from South Africa, which come into the country by road through Kenya, have not arrived.
Dick Nyeko, the commissioner for fisheries, said the processors who suspended operations use generators because they are not connected to the main power grid.
He added: "But even those who are connected to the main power grid may be affected by the surging prices of the Nile Perch at the landing sites and the depreciating dollar."
"The fuel crisis has severely affected fish exports because boats fishing Nile Perch use petrol engines. Nile Perch prices at the landing sites have been rising by 10% daily," Nyeko said.
A kilogramme of Nile Perch at the landing sites was at sh3500 before the crisis.
Hundreds of fishermen in Butiaba and Kasensero landing sites are stuck with fish.
"The situation is getting worse by the day. Our main buyers have stopped us from supplying them, yet the other processors are in Kampala. We cannot take fish to Kampala plants because we don't have contracts with them," a fisherman in Butiaba said.
Fish export earnings stand at over $150m (sh255b) annually with fish being the second largest forex earner after coffee.
Nyeko said the violence in Kenya is a blessing to the lake's ecosystem.
"The pressure mounted on the Nile Perch species has reduced. This will help regeneration of stocks," he explained.
Last week, the processors and the fisheries department officials had a meeting to plan how they could avert the crisis.

CLIMATE CHANGE AND EQUITY: Kenya Hit By Food Shortage After Poor Rains

Poorer rains in the Greater Horn of Africa region are forecast to spell bleak futures for pastoralists and all those who rely on their production system for cheap protein [nyama choma]. Climate change is expected to exacerbate these trends, spelling potential disaster for the pastoral communities and for the macroeconomy as imports of protein will need to rise and the management of rangeland is reduced. Fortunately, we can expect a rise in price/value of such meat, increasing incentives to be involved.

Source: BuaNews (Tshwane)
Judith Akolo
The long-term implications of last year's poor rain seasons in the Greater Horn of Africa region, affecting mostly Kenya, will be bleak.
Kenya, as well as Uganda, Somalia, Ethiopia, Eritrea, Sudan, Tanzania, Rwanda and Burundi, are experiencing a shortage of pasture for animals, poor crop harvests and reduced drinking water availability due to insufficient rainfall during the short-rains period last year.
This is according to Famine Early Warning Systems (FEWSNET), which is funded by the United States Agency for International Development (USAID).
The worst hit area is to be central Kenya, with impacts being felt in southern Kenya and parts of Somalia and Ethiopia.
Poor rainfall during the 2007 short-rains season has left southern portions of Kenya with insufficient pasture, drinking water and crop yields.
The northern pastoral areas of Kenya have also experienced a below normal short-rains season, the FEWSNET report says.
While control operations are ongoing following a locust invasion in parts of northern Kenya, the current situation is threatening livelihoods, because of a shortage of pasture and browse for livestock.
Some locations in the area have also experienced two consecutive seasons of failed rainfall.
Kenya is also currently experiencing political unrest following the announcement of President Mwai Kibaki, as winner of the 27 December presidential election.
Opposition leader Raila Odinga disputes the election result which gave victory to President Kibaki by a very narrow margin and he accused the president of rigging the election to stay in power.
British Prime Minister Gordon Brown earlier this week appealed to Kenya's political leaders to urgently hold talks to end the riots in which more than 300 people are reported to have died.
All local radio and television stations in Kenya on Sunday evening aired a special joint prayer session for peace.
The one-hour programme dubbed "Prayer for peace, Kenyans unite", involved leaders from the Catholic, Baptist and Pentecostal churches, as well as from the Muslim and Hindu faiths, who converged to pray for peace, unity, truth and justice.

Do Beanz meanz [we forgive democracy] hijackerz? UK hopes Kenyan exports not disrupted!

The UK middle/ chattering classes are really hoping the Kenyan public's reaction to its hijacked election does not mean interrupted fresh green beans and roses on Valentine's Day. Although, maybe this is the sort of international pressure and exposure that is needed to resolve the current troubles -- how else to keep the developed world engaged in the emerging problems in another of Africa's success stories.
It is the Tall Economist's opinion that a greater understanding of the African nature of a number of everyday household products will be well demonstrated by such interruptions. I just hope the situation resolves and trade can begin again with gusto and great quality we have come to expect from Kenya and its feeder countries that rely on its transport hubs [Uganda, Rwanda, Tanzania, Ethiopia]. As Philip Ngunjiri notes, "Economists credit Kibaki's government with allowing private enterprise the freedom to flourish. But they say growth could have been even better if the government had tackled corruption, speeded infrastructure improvements and fought crime." If only ...

Sources: Kenyan Broadcasting Corporation "UK companies move to protect 2008"; "Uganda: Kenya Stumbles, And Uganda Loses Its Step" The Monitor (Kampala) by Charles M. Mpagi ; "East Africa: Neighbours Also Suffer As Kenya Burns" The East African (Nairobi) by Philip Ngunjiri

Kenyan Broadcasting Corporation "UK companies move to protect 2008"

British companies moved to protect hundreds of thousands of staff in Kenya following post election violence that had threatened the country's economy.
More than 60 British companies - including Barclays, Unilever and GlaxoSmithKline - have operations in Kenya, a former British colony where the UK is the country's largest foreign investor, with investments worth an estimated £1.5bn.
The supply of roses, a major Kenyan export, has been disrupted by the violence
Unilever, which owns two tea plantations and employs several thousand Kenyans, said it was "taking all necessary steps to safeguard all our employees" following violence that is feared to have claimed at least 300 lives.
"Employee welfare is obviously paramount," said a Unilever spokesman.
Both Barclays and Standard Chartered, which employ 4,000 staff combined, closed a number of branches in areas where tensions were high "until further notice". GlaxoSmithKline said it had stepped up security at its manufacturing site on the outskirts of Nairobi.
Following the violence, sparked by disputed presidential elections, the world's biggest tea auction in the Kenyan port city of Mombasa and the Nairobi Coffee Exchange suspended trading because of concerns about security.
Most east African producers sell tea at the Mombasa auctions.
Kenya is the world's third largest exporter of tea, which, together with coffee and horticultural products, contributes to about 55pc of exports.
An estimated 135,000 Kenyans are employed in the production of flowers and fresh vegetables for the UK market.
Leading UK supermarkets - which import more than £100m of produce and flowers from Kenya every year - said that imports of green beans, mange tout, sugar snap peas, aubergines and chillies had not been affected. Kenya's total exports to the UK are worth £255m.
However there were reports that the supply of flowers, a major Kenyan export, had been disrupted.
The coming weeks are a key trading period for exporters of flowers, which supply Valentine's Day roses to the UK.
An Asda spokesman said: "Asda has a long and positive relationship with our suppliers in Kenya. Many families depend on the revenue generated from supplying products to Asda and it would be inappropriate to cease trading. We will continue to monitor the situation on an ongoing basis and will review if there is further deterioration."
There have been fears that Kenya's £450m-a-year tourist industry - the largest single contributor to the country's GDP - could be affected by the violence.
Lonrho, the London Stock Exchange listed conglomerate, said its Kenya-based budget airline had suspended flights following the violence.
The majority of flights, however, resumed on Wednesday.





Uganda: Kenya Stumbles, And Uganda Loses Its Step
The Monitor (Kampala) by Charles M. Mpagi



WITHIN hours of the violent protests following Kenya's disputed elections held Thursday last week, Uganda was on the brink of its own crisis.
Landlocked to the west of Kenya, Uganda suffered the biggest shock of countries that rely on the Mombasa sea route for imports and exports.
Long queues at fuel stations and prices that shot right through the roof immediately brought the Kenyan election, long seen as a minor distraction by most of Uganda's politically unconscious "middle class" (who are generally defined by the cheap second hand Japanese car they drive and the fact that they buy their groceries from supermarkets).
But the daunting prospect of having to pay between Shs80, 000 to Shs10,000 for a litre of petrol soon shook up their indifference and made them understand that politics matters after all. The fact that there was no fuel even if one could afford to pay for it at any price helped drive the point home.
Traders in Kampala's trading hub of Kikuubo told this news paper that, "We are suffering, business is not good, we do not have fuel." One trader who preferred not to be named also posed the tricky question: "they are talking about fuel coming, but will our goods come?"
This was in reaction to reports that the Uganda government has negotiated with the Kenyans to provide armed escort to fuel tankers through the volatile western Kenya so as to replenish stocks in Uganda.
Because of the significance of Kenya as a transit route for Ugandan imports, the crisis has seen local news media lead their bulletins with the Kenyan crisis. This concentration of attention may also be partly explained by the fact that the violence and mayhem have in a way provided answers to Uganda's own crisis and therefore the newspaper reports in part helped provide the population some form of reflection of their own fears back home.
To the ruling political class, it was the fear of a domino effect where the defeat of an incumbent government by the opposition in a neighbouring country could galvanise the domestic Opposition, which has already been gaining popularity in recent by-elections even where the President has personally been chief campaigner.
This, pundits say, could have in one way contributed to the government's hurried message of congratulation to Mr Mwai Kibaki despite the many questions that still hang around the manner of his victory.
As it turned out, only Uganda, in the entire world has sent a message of support and congratulation to Kenya. This embarrassing state of affairs has since given Uganda the unflattering distinction of being the lead news item on all major international networks.
Mr Kibaki was sworn-in in dramatic fashion within minutes of the declaration by the Electoral Commision of Kenya that he had pulled off a last minute overhaul of Mr Raila Odinga. There was no live media coverage of this event instead what was conspicuous was the presence of heavily police.
To some extent the Kenyan crisis also helped focus attention on Uganda's lack of preparedness for disasters just months after the government had again been paralysed in the face of unusually heavy unseasonal rains that led to unprecedented flooding in northern and eastern Uganda between September and early November.
As noted earlier, Uganda has not only suffered the biggest effects of the Kenya electoral crisis that has so far seen the death of at least 300 people (unofficial figures put the figure much higher) but also remains the lone voice of support to Kibaki's troubled government.
The endorsement of Mr Kibaki by President Museveni has drawn sharp criticism from the Ugandan Opposition but the man who was the conduit of the statement of congratulation, Senior Presidential Advisor on Media and Public Relations Mr John Nagenda remains unrepentant and unfazed.
Mr Nagenda told Sunday Monitor that even his boss has no regrets for remaining the sole leader to endorse Kibaki.
"He did what he thought was the right thing to do," said Nagenda on Friday.
Asked to comment on whether the message wasn't premature, he retorted, "Of course he doesn't feel it was hasty, as it is the point of the matter is that on Sunday the Electoral Commission of Kenya announced that Kibaki had won and even gave the tallies. Having done that he was sworn, Museveni has two roles to play, as President of Uganda and chairman of the East African Community (EAC). What is he supposed to do other than congratulate the person who has been declared a winner?" Nagenda said.
He then observed that in spite of the violence, as chairman of the EAC, President Museveni had asked the Kenyan government if it needed any help from its neigbours and expressed readiness to help

"East Africa: Neighbours Also Suffer As Kenya Burns" The East African (Nairobi) by Philip Ngunjiri
The ripple effects of the current political stalemate are being felt in the region, with the country's immediate neighbours that rely on the Kenyan port of Mombasa suffering the most.
According to Arun Devani, chairman of the East Africa Business Community, the five countries of Uganda, Rwanda, Burundi, Southern Sudan and the Democratic Republic of Congo are suffering more than Kenya.
"In a span of four days, fuel pump prices shot up from $1.2 to $5 per litre in Kampala. The situation is equally grave in the other major cities in the region."
Mr Devani was in a Kenya business community delegation that included the Kenya Association of Manufacturers, Federation of Kenya Employers, Kenya Private Sector Alliance and the Kenya National Federation of Agricultural Producers who told a media briefing that the country was losing Ksh2 billion ($31.45 million) worth of taxes daily due to unrest caused by the disputed presidential election results.
Most business premises in Nairobi have remained closed after the announcement that declared the incumbent Mwai Kibaki the president. Since then Nairobi and its environs has been rocked by widespread riots and looting.
The results announced by the Electoral Commission of Kenya have caused tension and violence in the country and a breakdown in security because they were not considered credible and the process appeared to have been compromised, said FKE chairman Patrick Obath.
"We are concerned about the country and are keen to protect it from further violence and loss of lives.
Our hearts bleed for Kenyans who have died needlessly and we extend our condolences. In the national interest, it is important for the truth to be established about the electoral outcome," he said.
In this regard, the business community appealed to all the main political protagonists to facilitate a process of establishing the truth with regard to the disputed elections.
The numbers presented by the commission are in dispute, they said in a statement. Both parties must facilitate an independent process that establishes the truth about the verdict of Kenyans in the elections. Such results will provide a basis for negotiations between the political leaders on a settlement acceptable to both of them.
Economists credit Kibaki's government with allowing private enterprise the freedom to flourish. But they say growth could have been even better if the government had tackled corruption, speeded infrastructure improvements and fought crime.

CLIMATE CHANGE TRADE SCAREs OVER: Kenya's Horticulture Sector Upbeat On 2008 Forecast

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.

CLIMATE CHANGE and EQUITY: VICTORY! UK Carbon Footprint Campaign Fizzles Out

Kenyan growers rejoice at the success of their well-run campaign against food miles ignorance and for global social justice.

Source: The East African (Nairobi) by Catherine Riungu

The food miles debate that threw Kenya's flower industry into a spin at the beginning of 2007 has finally fizzled out as UK supermarkets have dropped their initial hardline stance.
According to Ron Fasol, managing director of Oserian Development Company, a leading flower exporter, although this may not have been publicly acknowledged, the food miles debate has flopped and is unlikely to resurface - unless Africa reaches the high pollution levels of the developed world.
The plane symbols put on imported produce by leading UK supermarkets Tesco and Marks & Spencer have been replaced by Kenya's "Grown Under the Sun" label which, according to Kenya Flower Council chief executive Jane Ngige, has led to increased interest in Kenya produce and a subsequent surge in earnings.
Mr Fasol said the supermarkets rushed to impose sanctions on air-freighted goods without proper scientific findings, a move that prompted urgent research into how much carbon dioxide was released into the atmosphere by airlifting of goods from Africa. Growers, trade associations and scientists conducted studies whose findings discounted the retailers' theory that banning imports would reduce global warming.
The Soil Association of the UK had said it would withdraw its organic certificates from air-freighted organically grown produce, effectively denying products from Africa a vital market.
In September, when the association was to have effected the ban, the British Department for International Development (DfID) organised a debate where it charged that, "while welcoming the Soil Association's concern about the impact of food production on climate change, the air-freighting of fruit and vegetables counts for only a small proportion - less than 1 per cent of UK greenhouse gas emissions. There can be no denying that food transport has an environmental and social cost, but most of this - about 85 per cent - comes from UK roads."
UK Trade and Development Minister Gareth Thomas said: "The distance food has travelled is not a good way to judge whether the food we eat is sustainable. Driving 6.5 miles to buy your shopping emits more carbon than flying a pack of Kenyan green beans to the UK."
Mr Thomas added that tackling climate change was a priority in the fight against world poverty.
"The only fair option, which considers the livelihoods of those in developing countries as well as the need to protect the environment, is to ensure that the prices of the goods we consume cover the costs of their environmental impact," he said.
He added that the government was encouraging more efficient distribution within the food and drink sector, and has proposed that food industry trade bodies look into achieving a 20 per cent reduction in the social costs of transporting food in the UK by 2012.
He added, "We must ensure the world's poorest producers are not penalised for the sins of the world's richest consumers."
In Kenya, for instance, carbon emissions are 200 kg a head, while in the UK they are almost 50 times that. African economies are currently growing by around 5 per cent or more - in part due to agricultural exports.
Agriculture remains the most likely source of economic growth and poverty reduction in most African countries. If Africa is to grow by 7 per cent, and halve poverty, get its children into school and achieve the Millennium Development Goals, it must be free to trade with the rest of the world, DfID said.
The DfID stand rubberstamped the Grown Under the Sun crusade, which set out to inform British consumers about the development benefits associated with buying fresh produce from Kenya even as the food miles and carbon footprints debate continued.
Kenya Flower Council chairman Erastus Mureithi said the campaign was aimed at demonstrating to consumers that unlike flowers grown in Europe under artificial light, Kenya's are produced under natural conditions.
The Grown Under the Sun campaign was launched by Kenya's High Commissioner to the UK, Joseph Muchemi, at the Royal Show - Britain's largest agricultural trade show - in July, when the debate was at fever pitch, at a seminar on the subject of carbon emissions and food miles. It was attended by representatives from Kenya, British retailers, the National Farmers Union and Farmer's Weekly magazine, published in London.
Mr Mureithi said UK scientists have proved to carbon miles crusaders that the subject had not been scientifically focused, leading to the current change of mind.
He, however, cautioned the flower industry against celebrating because, this being the high season, human-rights groups and environmental activists focus their attacks on the high sales on Valentine's Day which is observed on February 14 worldwide with red roses. The day is the single most important event in the flower business.

KENYA and sustainable development: Bank Gets Long Term Credit for SMEs

Smaller businesses in Kenya will get a new leg-up from leveraged cheaper finance from Fina Bank [through EIB]. The credit market in rural areas is one missing market that needs filling and could radically alter the profile of rural poverty.

Source: The Nation (Nairobi) Kenya: Fina Bank Gets Long Term Credit for Smes

Fina Bank's small and medium clients can now access long-term financing of up to 10 years following an agreement with the European Investment Bank (EIB) to provide funding.
Under the agreement signed on Friday, Fina Bank will receive Sh273 million (3 million euros) from the European bank's Sh1.8 billion (EUR 20 million) line of credit.
Mr Carmelo Cocuzza, the EIB head of regional representation for Central and East Africa, said the loans will be available in Kenya shillings, US dollars or Euros at either floating or fixed rates.
"Besides being long-term, the loans will be beneficial to the clients because they will be cushioned against the local interest rates fluctuations," said Mr Cocuzza.
Fina Bank group CEO, Mr Frank Griffiths, said the agreement will allow the banks to provide longer term loans to its growing number of SME customers.
"Expanding a business is not easy and being able to finance a project for up to 10 years will be greatly appreciated," said Mr Griffiths.
He added that the ability to offer up to a 10-year loan, in a variety of currencies, and with the option of a fixed rate of interest, is relatively unique in this market.
It targets the agro-industry, fishing, mining, food processing, manufacturing, tourism, education and health-care.

CLIMATE CHANGE AND EQUITY: Africa caught in the tough ‘food miles' war with UK

Source: Business Daily (Kenya). by Zeddy Sambu

Kenyan stakeholders re-ignite the debate over how to balance the socio-economic development benefits from the export horticultural trade with Europe with the carbon costs. One telling fact is that this needs to grow for genuine economic benefits to be accorded to Africa and to have any chance of filtering down to the poorest. Indeed, it is reported that a one per cent increase in Africa's share of global trade would deliver seven times more than the continent receives in aid. This is a figure to bear in mind when African trade is put under threat by tokenistic gestures such as "food miles" ...

Every day, a cargo plane leaves the Jomo Kenyatta International Airport in Nairobi with Kenya's agricultural produce destined for the European market. But it lands in Europe as a surging air-miles debate continues threatening to curtail growth in the agriculture sector.
Mr Joseph Muchemi, the Kenyan high commissioner in London, is sitting right at the centre of the storm and is fighting back.
"As an exporting country, we feel that air freight has been unfairly picked out as being the prime contributor to carbon emissions and that the concept of ‘food miles' as indicative of environmental sustainability is misleading," Mr Muchemi said in a statement sent to Business Daily.
The air miles debate - introduced early this year - has now broadened to include the spectrum of energy use and framing methods, with local players term as crude, the efforts by the European Union to introduce new standards.
Fresh campaigns aim to shift attention from the much hyped climate change debate to the contribution of trade in fresh produce making the fight against poverty and economic welfare of growers in the developing world.
Besides , African growers are facing the commercial standards threat set by individual EU member countries and supermarket chains.
The food miles concept, researchers say, needs reform, to include social and economic development aspects.
While UK researchers have disagreed with retailers' design of a new aeroplane label on exports, on Friday, the debate, took a new twist to include farming methods dashing Kenyan hopes on the fight against climate change and boost of revenue from one of Kenya's leading foreign exchange earner.
The Soil Association, Britain's largest organic food association, said it will continue to put its stamp of approval on products sent by air, but only if the food sales help poor farmers.
The official certifier of over 70 per cent of organic produce sold in Britain, the lobby appeared keen to cut down on airfreight with intention to see a total ban in the future.
Air freighted organic produce, it said , must, henceforth, adhere to stricter ‘ethical' policies in order to be accredited and sold in the key market that absorbs 65 per cent of Kenya's fresh fruits, vegetables and flower exports. Previously, the environmental lobby debated refusing to certify products shipped by air freight because of high carbon emissions from planes.
But the group says details of the proposal would be open to discussion throughout 2008 and would become effective January 2009.
"Our aim is to minimise air freight by encouraging alternatives, such other forms of shipping, and creating local organic markets," Anna Bradley, chairwoman of the Soil Association Standards Board, told reporters in London last week. "We recognise that building alternative markets that offer the same social and economic benefits as organic exports take time," she said.
Experts are warning that more restrictive practices will damage its organic export market, which is growing in demand in the UK.
Although developing markets such as Kenya use less carbon intensive farming methods, analysts say collapse of the horticulture sector could see the country lose Sh114 billion in trade and investment.
Environmental organisations like Greenpeace, which earlier said it was concerned about the large carbon footprint created by food shipped via air freight, had been involved in consultations over the new standards, Bradley said. Nearly 95 per cent of Kenya's exports to the UK are sent by ship, which is far less intensive in terms of carbon emissions.
Campaigns unveiled in July by Kenyan flower exporters in the height of the climate change battle, introduced the ‘Grown Under the Sun' label to counter the campaign fronted by UK traders and environmental lobbyists.
"All environmental and social aspects need to be analysed, and trade-offs assessed. Singular comparisons do not necessarily help us to generate good policy," said Jane Ngige, the Kenya Flower Council's chief executive.
The local horticultural industry and its exports to the UK currently supports around one million Kenyans and generates at least £100 million per year to play a key role in its economy.
New research findings by the International Institute for Environment Development (IIED) show that developing markets such as Kenya actually use far less carbon-intensive farming methods, and so the broader picture looks very different.
It estimates that air-freighting from sub-Saharan Africa accounts for 0.1 per cent of the UK's total carbon emissions while around 65 per cent of emissions relating to food are caused by transportation within Britain.
Gareth Thomas, the UK Minister for Trade and Development, last week, noted that driving around six miles to a supermarket to buy some Kenyan green beans, emits the same amount of carbon as air-freighting that pack of green beans.
"If you consider that the majority of Kenyan fresh produce is freighted in the hold of passenger aircraft, then the emissions relating to that pack of green beans is even less," said Mr Thomas.
IIED says before targeting developing countries such as Kenya whose emissions per capita are 0.9 tonnes as opposed to Europe's 22 tonnes per capita, the UK needs to prioritise addressing domestic road transport and energy use first, then aviation.
Estimates of doubling of air travel in the next 20 years, coupled with high carbon emissions, and the exacerbating effect of "radiative forcing", make aviation cuts, a necessary part of the solution and realise targets under Kyoto Protocol.
The Kyoto Protocol recognises the need for equity and economic development for developing countries in the transition to a low-carbon future. The UK's carbon footprint is largely domestically generated, the IIED report notes. But the main share of increased flights appears to be passenger traffic. In the UK, passenger flights account for 90 per cent of emissions from air transport, and international freight for five per cent.
"There is no firm evidence that UK if consumers are not eating imported produce, fewer planes would fly today or in future. Indeed, an annual expansion of six per cent in air traffic in all sectors air freight imports, passenger volumes, and dedicated freight," says the London-based IIED.
Only 1.5 per cent of imported produce arrive in air transport but that portion produces 50 per cent of all emissions from fruit and vegetable transportation.
Currently, average carbon dioxide (CO2) emissions globally stands at 3.6 tonnes globally, the UK (9.2 tonnes) and Africa, one tonne.
"African figures are skewed towards oil-rich countries, and only two countries exceed the global average. Many African countries are feeling the force of climate change impacts, the root cause of which was produced in developed countries" IIED's James McGregor and Bill Vorley, authors of the ‘Fair Miles? The Concept of "food miles" Through a Sustainable Development Lens', say.
They want the ‘Food miles' campaign to be replaced by the new concept of ‘fair miles.'
The earlier concept, it says, is blind to social and economic benefits associated with trade in food, especially from developing countries, while previous inclusion of sub-Saharan Africa in these high-value markets has been a success story.
UK consumers spend over £1 million (about Sh137 million) at retail every day on produce from Kenya, Ethiopia, Tanzania, Zambia and Zimbabwe, that supplies 40 per cent of air freighted imports, and is now growing despite the threats. Trade, it notes, is dependent on the UK consumer, and also on air-freight, bringing climate change impacts of this trade into the development equation.
The new findings show that it is only through the sale of fresh produce that UK consumers will interact with rural Africa. Poor African countries rely on the UK market to support their domestic industry. By not buying the produce, UK, researchers say, will be guarding against an insignificant less-than 0.1 per cent in CO2 emissions.
"Economic development for the poorest in a low carbon future means expanding emissions for some," says the report in part. It adds that over one million livelihoods in Africa are supported by UK consumption of imported fresh fruits and vegetables.
On the contrary, ‘Food miles' presents an argument to buy commodities which have travelled the shortest distance from farm to table, and to discriminate against long-haul transportation, especially air-freighted goods.
The long-distance transport of food is associated with additional emissions due to increased transportation coupled with greater packaging, as well as a disconnection between the public and local farming.
It is estimated that annually, the UK "imports" 189 million cubic metre of African water as a result of the import of green beans, which is enough to provide 10 million Kenyans with drinking water.
An estimated £200 million is injected into rural economies in Africa through trade with the UK alone. Africa is a relatively efficient "investment" by the UK in allocating its carbon emissions to support livelihoods when compared to the efficiency of the remaining 99.9 per cent that is supporting 60 million UK residents.
Unlike many western farming methods, machinery is rarely used and Kenya's indigenous geothermal energy provides a sustainable way to maintain humidity on flower farms. This year, the world's largest commercial project using solar panels for providing energy for farms was launched in Kenya.
Water recycling systems on farms encourage plant growth and supports biodiversity.
Similar studies have been conducted with refrigerators on ships that use more energy keeping the produce fresh over longer periods of time than a short journey by aeroplane.
The UK has always encouraged trade relationships with Kenya and the countries have been major trading partners for generations.
While the Kenyan economy and development is greatly enriched by high-value organic exports to the UK, Kenya is also leading the way in the East African Community in trading closer to home and will continue to build upon this local trade.
It is well reported that a one per cent increase in Africa's share of global trade would deliver seven times more than the continent receives in aid. This is a figure to bear in mind when African trade is put under threat.
There are clear socio-economic benefits of organic farming in Kenya and it would be beneficial to nurture Kenyan organic farming.
"British farmers currently have access to, among other things, subsidised diesel fuel for machinery which perhaps does send out the right message about emissions and climate change," says KFC.

Thatcher the milk snatcher is back: Biofuels snatch milk from poor Africans

Biofuels are fuelling a milk crisis for poor protein-needy people throughout East Africa - all because of climate change.

With rising milk prices thanks to lower milk supply from pastoral grass-fed herds, owing to a cut in cheap animal feed imports from South Africa. A clear case of shockingly imbalanced climate change and equity. Where are the NGOs screaming for sustainable development and equity?

Some facts on the current milk crisis - are biofuels the new Margaret Thatcher of world economies - snatching milk from poor children?

• Kenya produces 3.078 billion litres of milk annually, of which only 200 million litres are processed into various value added products. Most is consumed by the rural people - the most marginalised in East Africa.
• More raw milk than processed milk is consumed not only in the rural areas but also in the urban centres, including Nairobi, Kenya's capital city where 80 per cent of all milk consumption is unprocessed.
• Milk provides a conduit to livelihoods options, such as access to capital:
  *** Under an arrangement with the big processors, farmers and milk co-operative societies can now get up to Sh500,000 loans repayable through deductions from milk earnings.
  *** Growth in this sector is catching the attention of financiers who are enticing farmers with a raft of incentives to take loans for improvement of their farms.
• And demand is increasing from Kenyans: Central Bank of Kenya says total milk processed increased from 143.5 million litres to 362 million litres, representing an overall increase of 152 per cent in past four years.
• Prices for milk sold into supply chains are up by 25% in 2007.
• Milk processing factories have been working work below capacity by 30-40 per cent.
• Concern is rising about over-reliance on fickle natural pasture or a rain fed system - which is itself being changed through climate change impacts - paradoxically owing to the poor environmental consequences of developed country economic development.
• Biofuel production in South Africa [using maize, corn] is diverting supply to cheap necessary animal feeds.
• Prices of animal feedstuffs are up 50% in 2007. "We can no longer get yellow maize imports from South Africa. Some of these crops are being diverted for the production of bio fuels," said Joseph Ngera, a farmers' representative from Nakuru.
• Plus, cheap imports are flooding in: "Our exports are curtailed by high duty (229 per cent) while we charge only 60 per cent duty for highly subsidised dairy produce from neighbouring countries," said Mr Muhika Mutahi, the chairman of the Kenya National Dairy Producers Association (Kendapo).

Kenya: Milk Output Up Despite Unreliable Weather by Zeddy Sambu from Business Daily (Nairobi), 11 October 2007. Article here.

Tesco DROP aeroplane stickers - citing sustainable development!

This great article is from Business Daily in Kenya by Zeddy Sambu entitled "Kenya: High Demand for Produce in European Market". It makes some key points which show that business is no longer going to accept "knee jerk reactions" to consumer actions - here to carbon emissions and climate change with a special focus on "food miles":

• Tesco has backpedaled on its earlier decision to warn its consumers on airfreighted produce citing research had proved that certain airfreighting foods are less harmful to the environment than those grown locally.


• Paul Monaghan, the head of ethics and sustainability for the Co-operative Group has also warned that aeroplane logos on airfreight goods in shops did not reflect the scientific reality.


• Tesco and Marks & Spencer (M&S) -Kenya's biggest buyers who had introduced the aeroplane symbol on imported produce - said there has been no impact on the sales.


• Air-freighting fresh produce from the whole of sub-Saharan Africa accounts for less than 0.1 per cent of Britain's carbon emissions.


• "As a measurement tool, these aeroplane symbols are fundamentally flawed, as they do not reflect the total energy used in production and processing, only the energy used for transport, " said Joseph Muchemi, Kenya's high commissioner to the UK, at a recent crisis meeting-to discuss the impact of 'Food Miles' and carbon labeling on exports of fresh produce from Kenya with the UK stores officials.

Click here for the full article.