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Kenya risks losing EU market for fresh beans

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Wednesday, 28 June 2017

Kenya risks losing EU market for fresh beans

Kenya is likely to lose her European Union (EU) market share of French beans to Morocco and Guatemala due to high cost of production, exporters have warned. Favoured by efficient production factors, the two countries are said to have grown their market share almost edging out Kenya, a situation that might be disastrous to local farmers. Fresh Produce Exporters Association of Kenya (FPEAK) new CEO Hosea Machuki said Kenya is grappling with high production and freight cost coupled with overpricing despite producing high quality beans. Morocco, he said, though produces mainly bobby beans that are considered of lower value as compared to Kenyan products that are usually premium class has expanded her market share in EU owing to aggressive marketing and its proximity. He said that the north African country is also very aggressive in marketing its fresh produce while Kenya is not. “We need to address the export numbers while still observing the highest standards which have made our French beans to be more preferred in the EU market,” Machuki pointed out during a horticultural industry meeting in Nairobi last Wednesday. “Our French beans when they arrive in EU that are already overpriced due to high cost of production at farm level and freight cost over and above high taxation,” he added. A kilogramme of French beans sells for Sh25 to Sh30 locally, with shipping cost to the EU market at about Sh200, according to FPEAK.

Source: MediaMaxNetwork