Packaging firms eye Kenyan market

Global packaging firms are angling for a bigger piece of the Kenyan market as they seek to seal gaps responsible for farmers’ post-harvest losses.

More than 200 firms from Italy, South Africa, USA, Germany, Canada, and France plan to showcase their packaging technologies in two forums in September and November.

The firms have expressed interest in entering the Kenyan market by investing in local firms or partnering with regional SMEs .

US-based Kliklok Woodman, a food packaging machinery firm, Italy-based Pavan Group, a World leader in cereals packaging and machinery, and Netherlands-based PCO Printing Chemicals, are among the companies that plan to attend the forums to be held in Kenya.

The firms are also eyeing opportunities in the country such as a strong potential for growth, a growing middle class, and abundant resources.

STRIKE DEALS

Through the Kenya National Chamber of Commerce and Industry (KNCCI), the companies have organised trade fairs to be held in September and November.

The forums will offer an opportunity for potential investors, local farmers and SMEs to strike business deals.

Mr Kiprono Kittony, the national chairman of KNCCI, said last week that chambers of commerce from Uganda, Egypt, Germany, and Italy would attend the forum.

“The two forums will create a friendly business environment for both entrepreneurs and farmers to benefit from firms that deal in plastics, packaging materials and equipment, paints and coatings, paper, pharmaceutical, bottling, and the general glass industry,” said Mr Kittony during the launch of the Kenya Chemex International Trade Fair which is scheduled to take place at the Kenyatta International Convention Centre in Nairobi from November, 19 to 21.

POOR PACKAGING

Farmers are expected to benefit by learning about and adopting new packaging techniques that will save them huge post-harvest losses.

The United Nations Industrial Development Organisation (Unido) has said post-harvest losses undermine Kenya’s resources in the agricultural sector, with 20 per cent of cereals and 50 per cent of fruits going to waste annually.

Kenya is estimated to lose billions of shillings annually in fruits, vegetables, milk, and fish because of poor packaging.

Delayed harvesting due to lack of equipment and poor packaging during transportation lead to post-harvest losses that significantly dent farmers’ earnings.

Last month, the Food and Agricultural Organisation (FAO) said it would in November release the findings of a study on post-harvest losses in Kenya. 

COUNTRY'S EXPORTS

FAO estimates that 64 per cent of the mango annual harvest goes to waste due to poor processing, handling, and packaging. Ninety-three per cent of mangoes harvested in Kenya are sold as fresh fruit and this is where most of them are damaged.

Industrialisation and Enterprise Development principal secretary Mr Wilson Songa said the losses compromise food supply and reduce farmers’ income as well as the country’s exports.

“We need to improve the processing and packaging of agro products by adopting modern technology,” he said.

The Economic Survey 2014 states that Kenya’s total exports declined by at least 3 per cent last year. This further worsened the country’s balance of trade deficit. This can be remedied by improved packaging and processing.