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: 23 September 2019; Hits: 5211

How Kenyan farmers can cushion themselves from negative impacts of global price fluctuations

avocado for export

Kenyan farmers and traders can increase the value of their foreign exchange earnings and protect themselves from fluctuations that can potentially reduce their earnings and increase their input costs by the adoption of foreign currency management strategies.

According to ABC Bank, foreign exchange markets have become volatile due to various reasons among them the trade war between the US and China, Brexit and oil price fluctuations due to rising tensions between America and Iran among other factors.

At a past forex training for farmers, traders and other customers, ABC Bank’s forex department said that the trade war between the US and China, Brexit and oil price fluctuations due to rising tensions between America and Iran have the potential to cause fluctuations of major currencies.

These fluctuations can potentially result in farmers losing earnings from export proceeds or increasing costs incurred when importing farming equipment, fertilizers and other inputs.

“Depending on how these scenarios play out there is a risk of hurting earnings and increasing input costs. Spot contracts, Forward contracts, currency swaps and options are some of the tools farmers, traders and other professionals who have exposure to foreign currencies can deploy to reduce the risk eroding their earnings when exchanging US Dollars or Euros and other foreign currencies for the Kenyan Shilling,” said Philip Wambua, ABC Bank General Manager Treasury and Financial Institutions.

Other key considerations that recipients and buyers of foreign exchange should consider are: Efficient remittance channels of their foreign currencies, shopping for the best exchange conversion rates and opening of foreign currency accounts to hold some of their receivables to meet their import needs.

ABC Bank is hosting foreign exchange trainings for customers across the country as part of the lender’s efforts to educate its customers on how to get the best value in foreign exchange dealings.

Data from the Economic Survey 2019 shows that the agriculture sector was amongst the leading sources of export earnings with tea coming tops by posting Ksh138.8 billion, horticulture (Ksh124.3 billion), coffee (Ksh23 billion) and tobacco (Ksh13.99 billion).

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: 23 September 2019; Hits: 7098

Kenyan mango farmers and traders unite to promote production and marketing of the fruit

mango tana river

Farmers, local traders and other stakeholders in the mango sector have launched an association to help them promote and market the fruit whose 25 per cent of its 400,000 - 500, 000 metric tons produced per year is lost at post-harvest stage in the country.

According to TechnoServe, an international nonprofit organisation, 90 per cent of the mangoes in Kenya are sold in the informal markets (vibanda) where prices are low while processors in the country operate at 30 per cent capacity due to lack of quality raw materials.

This comes at a time The prices of mangoes at processor level has risen by more than 80 per cent in the last seven years due to increased demand and low supply.

The newly launched Association of Kenya Mango Traders (AKMT) will therefore front the interests of the various stakeholders. Currently, the association has over 50 members registered before its launch with membership expected to hit over 200 in the near future.

AKMT is expected to bring together individuals involved in the sourcing of mangoes from Kenyan farmers for the local and international markets. The group was registered in November 2017 through the Societies Act (Cap 108). Its membership is drawn up from traders who operate from urban markets like Wakulima, City Park, Ngara, Kangemi, Kawangware, Githurai, Kongowea among others.

RELATED ARTICLE: Mango processor buying produce from all-comers

AKMT together with partners and development partners have been at the forefront of supporting and growing the mango value chain in Kenya. Since 2015 the development partner has mobilized over 32,000 mango farmers and trained over 20,000 on post-harvest management and linked them to ready markets. As a result, revenue per farmer has increased by up to 129 per cent and significant drop in post-harvest losses by up to 25 per cent.

“The formation of AMKT and its official launch, is further expected to mainstream these gains in empowering mango farmers and further ensuring the mango sector remains a key income earner for not only the farming households but also local county and the national government economy,” said AKMT CEO, Linah Mukami.

Ms. Mukami, further said, “the association will immediately pursue various interest among them working with county governments to abolish multiple and high tax points, helping farmers address issues of fruit flies and mango weevils, work with county government to ensure better market structure, address poor feeder roads at county level and promote the awareness and increased consumption of mangoes in the country.

AKMT Chairman, Mr. Julius Njuki said the association will also seek to address the self-imposed ban on mango export to the European Union.

“The current production stands at 400,000 -500,000 metric tons annually. Working with development organizations like TechnoServe we have managed reduce the post-harvest losses from 50% of the annual production in 2015 to 25% in 2018,” said Mr. Njuki.

According to Mr. Njuki, Mango is the safest fruit to enjoy in Kenya as its only picked when ripe and the natural ripening process cannot be artificially influenced.

“With support from government, we want to promote mango eating culture in Kenya. In some areas, Mango is still perceived as a fruit only accessible to the rich. Therefore, we are asking for a mango week when traders can be allowed to promote awareness of mango consumption and sell the fruits in Nairobi and other cities,” said Mr. Njuki.

In supporting mango farmers, the association said it will embark on the integration of farmers through provision of technical support and inputs, and the provision of ready market for all produce.

Photo: Mango fruits. Photo courtesy.

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: 17 September 2019; Hits: 8656

Fresh fruits exporters in need of apple mangoes ahead of high season

apple mangoes

Apple mangoes. Photo courtesy.

Kenyan fresh fruits exporters are looking for apple mangoes, the preferred variety in the international markets ahead of the fruit’s peak season that ranges from October to March every year in a bid to up the country’s export from 26,000 metric tonnes experienced in the previous years.

“Apple is the variety of choice for export and fresh fruit domestic market because of its colour and aroma when ripe hence the need for this variety for our growing Middle East market,” said Agnes Koti, the marketing officer at Mofarm Fresh Fruits Exporters Ltd.

Kenyan mango industry has a key competitive advantage that makes its value proposition unique to the market.

It prides itself in having one of the longest mango seasons that starts from October to March (High season) and another shorter season that ranges from April to June covering mainly the Coastal region. This makes it possible for Kenya to supply its main market (The Middle East) when the big suppliers of India and Pakistan are off-season, according to the International Trade Centre (ITC).

In Africa, said Koti, Kenya competes with Egypt in the Middle East export market which is an important market for us because the consumer in this country is already aware of the high quality of the Kenyan mango and since Kenya do not export the fruit to the European export market due to trade-related issues.

RELATED ARTICLE: Kenyan mangoes have a ripe market in Japan

The most promising future market for fresh mangoes from Kenya remains the Middlea East countries of Saudi Arabia, Qatar, Oman and the United Arabs Emirates.

The growing international demand has however not attracted big investors leading to the mushrooming of very many small scale farmers who cannot guarantee quality and quantity required by the market. In effect, the exporters have had to buy from these small players, consolidate and sort out the fruits least come up with something that is acceptable to the market.

“We have a team of agronomists who work with our contracted farmers to ensure that they meet the production standards. We also ensure that for the new entrants or those planning to increase the acreage under the fruit’s cultivation, we provide quality and high yielding seedlings at a fee,” said Koti.

Mofarm also trades in avocadoes, pineapples and pawpaw fruits.

For Mangos From Kenya Ltd, intense continuous training that guides farmers to plant and maintain mangoes professionally in order to meet stringent quality standards at the destination markets has seen the company report 30 per cent jump in exports in recent years.

“At the moment we are directing 90 per cent of our earnings to our farmer care program which is a rigorous project intended to ensure that farmers in our network get it 100 per cent right on what kind of mangoes the export market needs. This is very important to us because we can only claim to be in business when we are giving the customers what they want”, says Louis Matheka, Sales Manager of Mangos From Kenya.

Currently, the company aims to get smallholder farmers producing good quality fruits, devoid of fruit flies which had previously wreaked havoc on the Kenyan mango crop. As a result, farmers too are benefiting from increased yields and a higher quality crop that leads to an increase in exports.

For most of these companies, the eastern region of Kenya remains the fruit’s important production area especially for the export market given its soil and climate make the perfect combination for mango production.

Besides apple other improved mango varieties grown in Kenya include Kent, Tommy Atkins, Kent, Van Dyke, Sabine, Sensation, Pafin, Maya, Kenston, Gesine and Haden while local varieties are Ngowe, Boribo, Batawi, Sabre and Dodo.

Both local and exotic varieties are grown in the Eastern region of Kenya. Overall, the Counties with a higher percentage of improved mango varieties are Kiambu (Thika), Embu, Tharaka Nithi (Mbeere), Meru (Meru Central and Meru South), Makueni, Machakos and Kitui.

Mangos From Kenya can be reached on (+254) 20 -805 6102/ (+254) 735 194 086 or Email: This email address is being protected from spambots. You need JavaScript enabled to view it. while Mofarm Fresh Fruits Exporters Ltd on +254 722 263 781/This email address is being protected from spambots. You need JavaScript enabled to view it.

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