State now banks on specialty products to boost exports

KEITT staff packaging avocados at the exporters firm located along Thika Road, Nairobi. [David Gichuru, Standard] The government seeks to spend up to Sh60 million to develop a niche market and up demand for specialty agricultural products - both locally and internationally. A strategy developed by the Agriculture and Livestock Development Ministry targets tourists and the growing middle class to provide a market for these products. A specialty product is a specific consumer good that is available for purchase at limited retail locations with a limited supply. They are usually high-end, priced higher than other standard products that consumers buy more frequently. Part of the money set aside by the ministry will be used in facilitating producers of the products to participate in exhibitions locally and overseas. It will also go to branding and merchandising of the products and produce. Infused tea and purple tea are among the speciality products the government aims to boost uptake of. According to the Agricultural Marketing Strategy 2023-2032 unveiled by Cabinet Secretary Mithika Linturi, the sub-sector of speciality products and produce has immense potential that if harnessed, can boost farmers' earnings. The 90-page document notes that certifications such as Halal are vital in the sector as they inform consumers, particularly Muslims about the products that are acceptable by their religion. However, demand for specialty products in the country is low owing to a lack of information about the same. "Demand for specialty products in Kenya is low but growing and is largely driven by high-end consumers consisting of well-educated and financially independent Kenyans from the middle-class segment who are increasingly becoming aware of the benefits of healthy eating," reads the strategy in part. The ministry notes that tourists and the expatriate community consume 65 per cent of the specialty products sold in the country. "Therefore, agricultural specialty value chain players could significantly increase their incomes if they are supported to join specialty food scheme," the strategy notes. Top dollar Specialty products or produce, unlike the rest in the sector, target a specific segment of the market with branded or merchandised items customised to their liking or preferences. As such, this market is willing to pay top dollar for the extra mile farmers and other players in the value chain to grow and make these products available to them. Organic products fall in this category. In Kenya, specialty products have been expanded to include branding concepts that are unique to the geographical area the produce is grown. Geographical indications are a branding concept that identifies products with unique qualities attributable to the natural and human factors associated with the area of origin," the ministry says. The ministry notes that speciality crops and livestock exhibit a great potential to form a significant part of Kenya's agricultural exports. However, the production of specialty produce and products is currently low but is rising to correspond with increasing demand. "For instance, only about 200,000 farmers are organic growers, with only 13,000 having undergone certification, according to a report published by the Kenya Organic Agriculture Network in 2014," says the ministry. The ministry lists an underdeveloped specialty value chain, lack of policy to support the specialty sub-sector, inconsistent supply of speciality products in the market, lack of designated areas for the sale of specialty produce and products in physical markets and high cost of certification as some of the issues facing the market. The strategy notes that Kenyan agricultural products find it hard to penetrate both domestic and international markets due to the multiple taxes on agricultural produce levied by both national and county governments. There is also limited exploitation of opportunities in bilateral, regional and multilateral trade agreements as well as stiff competition from countries exporting to Kenya's established markets. Other challenges are limited diversification into new and emerging markets, export of raw bulk commodities and cultural barriers associated with colonial affiliations in the continental markets. "These have reduced market access, resulting in increased imports as well as reduced exports of Kenyan produce," says the ministry.

State now banks on specialty products to boost exports

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State now banks on specialty products to boost exports

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