June Issue 4 2012

2012 National Exporters Forum

The Kenya Flower Council will participate in the National Exporters Forum 2012 scheduled to take place on 29th June 2012 at Kenyatta International Conference Centre. KFC together with FPEAK will mount a stand during the forum to showcase Kenya horticultural produce which includes flowers, fruits and vegetables.

The forum will be graced by His Excellency, Hon. Mwai Kibaki, CGH, M.P, President and Commander in Chief of the Armed Forces of the Republic of Kenya, as the Chief Guest.

The Export Promotion Council (EPC) in collaboration with the Ministry of Trade and Trade Associations will facilitate this important event.

This is an export sector annual event whose main objective is to facilitate dialogue among the Public-Private sector export stakeholders. The forum reviews Kenya’s export performance, through presentations, discussions and at the end; brings to the fore contemporary issues that impact on the export sector for consideration and implementation by the relevant organizations.

Small scale growers benefit again from PES programme

Small scale farmers in Lake Naivasha catchment area received USD 8,000 from flower farmers in Naivasha as part of the Payment for Environmental Services (PES) programme. This brings to USD 21,000 the total amount the flowers farms under their umbrella body Lake Naivasha Growers Group (LNGG) have given the farms in the last three years.

PES is a mechanism where rewards are transferred from those who benefit from the environmental service to those who manage it. PES aims to change the incentives for land use in order to maintain or restore the desired environmental service. PES is being implemented in the upper catchment of River Malewa, the Main tributary to lake Naivasha. The project involves small holder farmers implementing soil and water conservation on their farms thus reducing soil erosion and thus ensuring less turbid water flows in the rivers. This ultimately means less silt being carried into Lake Naivasha. The project has been going on since later 2009.  The incentives are provided by the Lake Naivasha Water Resource Users Association (LANAWRUA) which represents 23 member commercial farms around Lake Naivasha, is composed of the Lake Naivasha Growers Group (LNGG) and the Lake Naivasha Riparian Association (LNRA).

The money goes towards buying farm inputs for the farmers as one way of motivating them so as to conserve the endangered catchment area.

In 2011, 504 Kenyan farmers received 799,724 Kenya Shillings (US$ 8,886) from industrialists and conservation groups around Lake Naivasha, for land use practices that ensure adequate flow of clean water into the lake through the Malewa River.

These measures improve farm productivity and provide both nature and downstream users with quality water as a long-term environmental service.

Farmers could access US market

Kenya’s top foreign exchange earners— tea, horticulture and coffee —are lined up for access into the US market in a fresh bid to boost exports under preferential trade with African countries. The proposal to include all agricultural products in the list of products exported to US duty-and-quota -free under the African Growth and Opportunity Act (Agoa) is contained in a Bill that is already before the US Congress.

If passed, the changes in the legal text of Agoa will allow African exporters to bypass stringent quality screening that have traditionally slowed the sale of their produce in the US market. “Sanitary and Phytosanitary Standards, though important for maintaining food quality and protecting human, plant and animal health, do impose additional demands on exporters, and can limit agricultural market access for Agoa-eligible products.” says a new report on Agoa.

The report titled the African Growth and Opportunity Act: Looking Back, Looking Forward — is written by Mr Witney Schneidman, a key drafter of Agoa law during Bill Clinton’s administration. Since Agoa’s inception 10 years ago, agriculture—which accounts for a quarter of Kenya’s Sh2.7 trillion GDP and employs more than 70 per cent of population— has not made any noticeable impact on Kenya’s (mainly textile) Agoa exports. Trade ministry officials together with private industry players and top officials of Export Processing Zones (EPZ) Authority are the US to lobby the Congress to put the Bill in its priority list.

Despite low level of value addition in agriculture, the current legal text of Agoa envisages processed products as the basis for sustaining the preferential trade relationship. The report released ahead of last week’s Agoa forum which took place in Washington attributes low contribution to agriculture in the Agoa trade to the fact that the products are subjected to same conditions that exporters from developed economies face.

The report adds, “Although the US provides a great deal of capacity- building support to Africa, more support is needed to help countries meet these standards and export agricultural goods to the US market—as well as coordinate the activities of the US agencies that provide this support.”

For Kenya, revising Agoa text to include agricultural products means increased inflow of hard currencies from tea, horticulture and coffee industries— the top foreign exchange earners which exporters have aggressively been scouting for new market outlets. Last year, Kenya earned Sh109 billion from tea exports— mainly to Asian countries with the earnings from US falling below five per cent. The country also earned Sh98 billion from exports of horticultural products but more than 80 per cent of this receipt came from Europe. Coffee export also relies mainly on European countries despite the early inroads it had made into the US market.



Rio +20 conclusion: the key role of the private sector

Despite the best efforts of the European Union to reach an ambitious agreement, policy makers in Rio disappointed those hoping for more concerted action. Civil society lamented the absence of several heads of State and the weakness of the agreements reached, with few targets and no timetable. It is now up to the private sector to implement initiatives that help to save the planet by adopting sustainable practices.

In its capacity as an association of producers and import-exporters, COLEACP has already taken this message on board, and is doing everything it can to encourage the private sector to take on this challenge.

Nothing will be achieved, however, without the cooperation of the public sector, governments, NGOs and international donors. More than ever, we are working together to ensure that environment and development go hand in hand.


Scheduled to take place from October 10th to 12th at Makuhari Messe Japan, the Growers Fair held inside International Flower Expo Tokyo (IFEX) is expected to double its number of exhibitors from 288 a year ago to 500. Kenya growers have been mounting stands in the past years with the support of Horticultural Crop Development Authority. Considering that two years ago, the number was only 120, the fair has grown by a staggering 400% in just two years. 500 growers from around Japan and the world will be exhibiting their various produce including fresh cut flowers, nursery and potted plants, gathering keen attention from throughout the industry.

Officially launched last year, the Growers Fair offers its exhibitors the options of a regular booth or just a display table. The participation fee for a display table is relatively low at 50,000 Yen or approximately US $600, making it very affordable for even small growers to take part.

For more info contact:

Show Management, Reed Exhibitions Japan Ltd.

18F Shinjuku-Nomura Bldg., 1-26-2 Nishishinjuku, Shinjuku-ku, Tokyo 163-0570, Japan

Tel: +81-3-3349-8519 Fax: +81-3-3349-8530 E-mail: ifex-eng@reedexpo.co.jp

Website: www.ifex.jp/en/

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