To export more, farmers must fix production system

Peter Biwott is the chief executive officer of the Export Promotion Council, an organisation tasked to see to it that many Kenyan products are sold in the export market.

He spoke to Anita Chepkoech on what farmers can do to ensure they sell their produce internationally

One has to go through 56 steps to sell their produce in the export market. Are all these steps necessary?
Every country’s objective is to produce internationally accepted products. Some export regulations, tariffs and non-tariffs are so stringent, but that should be taken positively to mean increasing the quality of our products to make them consumable anywhere in the world. The tough rules are, in disguise, an opportunity to develop ourselves.

The government plans to set up the commodities exchange by January next year. How will the exchange boost agricultural exports?

Commodity exchange will assist in aggregating high quality produce from our farms, in addition to guaranteeing better prices to producers and exports buyers.

COMEX will also inculcate a culture of productivity and high quality in a sustainable manner.

What is ailing local farmers?

There is lack of information about opportunities in the export market and farmers also need to be assisted to come up with quality produce, which is why we need many extension officers in the counties.

The government has done enough in opening the market; what farmers and Kenyans need to do is respond with an equally positive mind towards achievement of higher results.

Our biggest push right now is to shift from exportation of raw materials to value-added products and manufactured products.

Besides the information gap, there is lack of efficient logistical infrastructure including warehouses and good market frameworks which guarantee good prices.

Then there is the issue of quantities. Volumes matter and to increase our economy, we must increase the quantity and quality of exports.

Does Kenyan produce compete favourably in the regional market?

I can confidently say that our products are fairly competitive in the region. When you talk about the African continent, our manufactured and value-added products are very competitive.

Edible oils from the country, for instance, are sold across Africa. But Uganda and Tanzania have a competitive and comparative advantage over Kenya on onions, eggs and milk.

Kenya, however, has higher advantage on tea, coffee and the edible oils. Also, a good number of Kenyan investors have invested in foreign countries and are importing their products back into their country. That is the new game in international trade.

Agriculture is a devolved function. How does EPC work with counties to promote international trade?

We are building a database of all exportable products obtainable in each county, to know which ones are already being exported and by which companies and which ones need to be developed for export.

The other day I wrote to counties seeking information on how we can establish county trade information/investment hubs to help more grassroots enterprises to take part in trade. Kisii County has already written a proposal seeking our help in setting up one.

The counties are to identify trade officers in their departments who we can train to provide business counselling and export capacity development to local enterprises.

This will include organising trade exhibitions at the ward and county levels so that more Kenyans can learn and understand how export business is done.

How do you plan to increase the presence of Kenya’s farm produce in the international markets?

We must first fix our production because we cannot sell what we don’t have. The trade gap between what we import and what we export is Sh1.15 trillion.

We import Sh1.7 trillion and export Sh613 billion. The deficit can be eliminated if we revolutionise our enterprises so that those already exporting do it efficiently even as we recruit others. Currently, our range of export products is not wide.

Only 20 products contribute to our list of exports whereas the US market has given us duty free access for 6,400 products. We also need to utilise Kenyans in diaspora to help us market our products.