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The Practice of the Development of Africa’s Agro-industry Chain. Dr Stephen Mbithi CEO: FPEAK- Kenya Fresh Produce Exporters Association of Kenya Coordinating CEO: Hort Council for Africa (HCA) [email protected] +254722716956. - PowerPoint PPT Presentation
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The Practice of the Development of Africa’s Agro-
industry Chain
Dr Stephen MbithiCEO: FPEAK- Kenya
Fresh Produce Exporters Association of KenyaCoordinating CEO: Hort Council for Africa (HCA)
[email protected] +254722716956
28-July: Dar: 2012 China-Africa Poverty Reduction and Development Forum
...a Viable Option:High value Agric for Poverty alleviation• Example: Kenyan Hort:– Total value – 3.7 billion US$
• Exports 2011: 1.2 billion US$– Vegetables/Fruits: 650 million US$– Flowers – 550 mil US$
• Domestic: – 2.5 mil US$ (2008 estimates)
– 1.5 million farmers on hort, total 4.5 mil direct/indirect dependent (11% of total population)
– The Players:• Smallholders-70% by value of fruits and vege exports, and
about 10% flowers• Large scale growers- mainly in flowers (10% flowers are
smallholder produced)
How it happens…
• A market-led production….STRICTLY– Production synchronized with supply contracts secured
with EU supermarkets (82% total hort exports)• Exporter – Led Smallholder production
– Standardization, therefore bulking at smallholder level– 24 hours from farm to supermarkets in the market
• Limited or no cold storage facilities in fields• Cold storage/packaging/processing facilities at Nairobi
– About 1,000MT fresh produce air-freighted daily during peak selling season
what about…Standards?
• Standards compliance KEY to marketing– Enhancing Consumer confidence- standards are a
passport to trade– Small-scale farmers comply to standards• Official Control Systems• Market Standards- Compliance is Private sector driven
– KenyaGAP…benchmarked to GLOBALGAP– Certification system
What we have learnt…• Smallholder production is Profitable:
– Either small or large is OK..not medium size• 1 acre to 10 Ha or above 40 HA
– Economies of scale Vs return on investment for mechanization
– CORRECTION- smallholder- commercial NOT subsistence farming• Uniform practices, and standards compliance
– Key to bulking, hence key to smallholder participation in the global value chain
• Training- horticulture is knowledge intensive• Facilitative Govt Policy
– Strong Government standards enforcement Institutions– Phytosanitary and Sanitary standards institutions
• Private sector leadership is key,– Need for strong private sector organizations
• Role of FPEAK (since 1976)• Public- private Partnerships:
• Practical Training Centre (PTC)
…Future Perspectives• Market diversification is a MUST
– China market for African agriculture is KEY to future contribution of farming to poverty alleviation in Africa
• Reducing Cost of production and logistics– Chinese Technology is key.
• Water distribution, transport, greenhouses• Needed
– More cost-effective sea and air connectivity between east Africa and China
• Smallholder production is the future:– Land pressure (high population) in high potential areas– Better wealth distribution for agric revenue– Large-smallscale linkages, and efficient value chains- remain key