1 / 9

The Practice of the Development of Africa’s Agro-industry Chain

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) Chiefexecutive@fpeak.org +254722716956.

phillip-gilliam
Download Presentation

The Practice of the Development of Africa’s Agro-industry Chain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 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) Chiefexecutive@fpeak.org +254722716956 28-July: Dar: 2012 China-Africa Poverty Reduction and Development Forum

  2. ...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)

  3. 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

  4. 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

  5. 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)

  6. …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

  7. Thank You Dr Stephen Mbithi chiefexecutive@fpeak.org +254722716956

More Related