1. Competitive Kenyan Horticulture Industry: Practical application of quality standards in Kenya Presented by: Timothy I Mwangi Date: 20 th September 2011 UNECE, Accra: Ghana

2. USAID-KHCP 2010-2015 Primary goal is to increase incomes of 200,000 small scale producers and improve food security 2

3. Introduction….. Agriculture accounts for about 24% of Kenya's with an estimated 75% of the population depending on the sector either directly or indirectly. Kenya’s agriculture is largely dependent on seasonal rainfall. Kenya as a major exporter especially to the EU is expected to meet importing countries market requirements. Horticulture sub-sector projected to be over 33 % of agricultural GDP. 3

4. ….Introduction Kenya continues to be a major exporter of horticultural produce to world markets, with 403 thousand tons worth ($945 million) in 2010 being exported; mainly to the EU (over 80 %). The main exports of fruits include avocadoes, mangoes, pineapples, passion fruits, Vegetables French beans, runner beans, snow peas and Asian vegetables. 4

5. Horticultural Exports: Volume & Value in US $ (1 US $ = 81 KShs) 5

6. GOK Growers Grower Groups intermediaries exporters/agents exporters Government offers a good trading environment, regulates, oversees the trade and compliance to standards. Horticulture trade is mainly private sector led with government support.

7. To implement the OECD/UNECE standards team work is appreciated…. KEPHIS – Kenya Plant Health Inspectorate Service takes the lead role as it is the the Regulatory Agency mandated to ensure: - Quality of agro-inputs - Quality of produce (phytosanitary and physical quality) - Inspection and certification of production/grading facilities - Inspection and certification of export & imports - Information sharing in marketing standards KEPHIS on behalf of Kenya - Certifies and issues conformance certificate as per EU approval (EC) No 431/2006 of 15 th March 2006. Kenya is considered an approved source for fruits and vegetables into the European Commission. In 2009, Kenya became a member of the OECD Fresh Fruits and Vegetable (FFV) scheme. EU Regulation 1148/2001 Article 7, Recognizes conformance checks and certification by approved third countries that currently includes Kenya, Morocco, South Africa,Senegal, India, New Zealand, Turkey… Standards implementers and custodian 7

8. Besides KEPHIS, to implement the OECD/UNECE standards – team work is appreciated…. KEBS – Kenya Bureau of Standards – main standards body and custodian of all standards in Kenya, KS 1758 code of practice for horticulture FPEAK – Fresh Produce Exporters Association of Kenya – growers and exporters trade association – self regulation, Owners of KenyaGAP HCDA – horticulture crops development Authority - registration of exporters and contract farming, has HCDA code KRA – Kenya revenue authority – Taxes compliance and documentation ….Standards implementers and custodian 8

9. Kenya has taken the application of standards seriously and embarked on building of fresh produce markets. Efforts have been made to sell fresh produce from designated points that are safe and hygienic. This is a major challenge as produce grown is a lot. Attendance and holding of meetings and workshops; –UNECE Working Party (WP) Number 7 in Geneva (May 2010) –International Harmonization of Quality Standards for Fresh Fruit and Vegetables for Countries of Africa in South Africa (April 2010) –OECD 15 th International Training Course in Slovakia (September 2010) –National workshops in 2010 and 2011 – with OECD experts facilitating. Efforts of Kenya towards continued compliance with requirements of OECD FFV scheme / 1 9

10. Efforts of Kenya towards continued compliance with requirements of OECD FFV scheme / 2 KEPHIS Inspectors are equipped with basic quality inspection tools. Currently, up to sixty two exporters require conformity certification to European market i.e. Germany, France, UK, Spain, The Netherlands and Belgium. Traceability, the regulators and producers of fresh fruits and vegetables in the country have been working on their traceability systems. A number of farms, institutions in the horticulture value chain are ISO certified, or comply with KenyaGAP (over 200), GLOBALG.A.P or other Private standards. The Fresh Produce and Exporters Association of Kenya (FPEAK) launched a local standard procedure manual for fruits and vegetables, a major development in the horticultural industry (May, 2010). Electronic export certification was launched on 19 th April 2011 and is expected to strengthen traceability measures. Over 200 exporters use this system to log their produce destined for export markets. 10

11. KEPHIS inspector in full gear Some tools of trade Inspection in progress Complied produce 11

12. Standards and Trade can be both barriers or advantages relating to market entry and growth Training – Inspectors, Trainers, Language and translations Implementation – Professionals, on plant/farm, sometimes interpretation differs Dynamism of standards –”Improves” every year Size of growers – large, medium, small holders Wide geographical coverage and porous borders Finances – cost of inspection, training, external and internal certification Climatic change Key challenges 12

13. INDUSTRY intervention compliance and certification to standards local and export market - GAP, Social, food safety Training – Group dynamics, standards, agronomy – fruits, vegetables, flowers, root crops, oil crops, auditing and inspection, Implementation, Auditing, Certification, Growers guide – Agronomy and standards New products development and market diversification 13 Kenya has realised the importance of standards and compliance

14. Maintaining approval status requires continued investment in compliance, continually guiding producers to meet standards - good for continued export markets A faster spillover to the domestic market/ harmonization of export and domestic market requirements implies higher returns to the farmer Key considerations as we move forward 14

15. ANNUAL NATIONAL WORKSHOP ON APPLICATION OF COMMERCIAL QUALITY STANDARDS FOR FRUITS AND VEGETABLES 4 th to 7 th April, 2011 KEPHIS Headquarters, Nairobi, Kenya Efforts made …… 15

16. Farmer on farmGrading in the field Final packaging Complied produce …..Efforts made traceability 16

17. ….Efforts made KEPHIS manual – French beans, Avocado, passion fruits, peas Posters – beans, avocado, peas 17

18. Areas where effort will be directed in the short term ITEM 1. Training of growers/Producers on Quality Standards i.e. annual workshops and regional targeted workshops 2. Training of Retailers and Super markets 3. Follow-up Trainings for Staff & Stakeholders 4. Follow-up meetings with Stake-holders & Regulators on harmonization of Inspection procedures & Standard Implementation 5. Annual participation in Standards Trainings & representation in OECD Scheme meetings 6. Development of more reference material for Trainings and Information dissemination i.e. for commodities not done e.g. Mangoes, aubergines, runner beans. 18

19. For Further Information contact: Kenya Horticulture Competitiveness Project (KHCP) Nairobi, Kenya khcp@fintrac.com Tel +254-20-2121838/2121839/2023314 Fax: 2121837 The KHCP is managed for USAID by: Fintrac Inc., www.growkenya.orgwww.growkenya.org E-mail: khcp@fintrac.comkhcp@fintrac.com 19

20. For Further Information contact: Managing Director KENYA PLANT HEALTH INSPECTORATE SERVICE (KEPHIS) P. O. Box 49592-00100 Nairobi, Kenya. Tel: +254-20-3536171 or 3536172 Fax: +254-20-3536175 E-mails: director@kephis.org Website: www.kephis.orgwww.kephis.org 20