Horticultural exports from Kenya could rise by 20 per cent by the end of this year - as long as the global economic climate does not impact on demand.
Stephen Mbithi of the Fresh Produce Exporters’ Association (FPEAK) told Reuters this week that horticulture had become the country’s top foreign exchange breadwinner, with sales of flowers, fruit and vegetables earning about $1 billion (£587 million) in 2007. Horticulture has been growing by about 14 per cent in recent years, said Mbithi.
But, quoted in the Guardian, he warned that any knock-on effect from the global financial crisis could see Kenya’s earnings from horticultural exports fall by five to 10 per cent this year.
“We are still selling flowers. We haven’t dipped in supply and value of exports," he said. “We are trying to understand where the [global crisis] is going. If anything affects consumer confidence in Europe, then it will affect us.”
Sales in the last quarter of 2008 will determine whether Kenya meets its 20 per cent growth target.
But the cheaper costs of production in Kenya mean the country is in a better position than many to weather the economic downturn, said Mbithi. He also noted that most Kenyan farmers operate from their own capital rather than borrow, so the credit crunch would not affect them from that count either.
Mbithi welcomed the recent efforts of East African neighbours Ethiopia and Tanzania boosting production. “It is in the interest of Africa to have a regional hub for production,” he told Reuters.
