HORTICULTURESTUDY

SYNTHESISOFPHASEONEOFTHESTUDYONTHESOURCINGOFFRUITSANDVEGETABLESFROMTANZANIAANDKENYA

StudycommissionedbytheEmbassyoftheKingdomoftheNetherlandsandundertakenby

FinalReportMarch2017

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TableofContent

1. INTRODUCTION..............................................................................................................................1

2. KEYTRENDSINTHEEU/UKMARKETS.............................................................................................1

3. KENYAANDTANZANIAPOSITIONINTHEEU/UKMARKETS...........................................................2

4. PRODUCT-MARKETMATCH..........................................................................................................44.1 TANZANIA....................................................................................................................................44.2 KENYA.........................................................................................................................................6

5. INVESTMENTAREAS.......................................................................................................................75.1 EXPLANATIONOFTHECRITERIAFORTHEIDENTIFIEDINVESTMENTAREAS.................................................75.2 EMERGINGBUSINESSCASES............................................................................................................7

5.2.1 Tanzania............................................................................................................................75.2.2 Kenya.................................................................................................................................8

6. PROPOSEDWAYFORWARD............................................................................................................9LISTOFTABLESANDFIGURESTABLE1:KENYATOP5FRUITEXPORTCOUNTRIES-2015..................................................................................2TABLE2:KENYATOP5VEGETABLEEXPORTCOUNTRIES-2015...........................................................................2TABLE3:TANZANIATOP5FRUITEXPORTCOUNTRIES-2015.............................................................................3TABLE4:TANZANIATOP5VEGETABLEEXPORTCOUNTRIES-2015......................................................................3TABLE5:MARKETWINDOWOFOPPORTUNITYFORTANZANIA............................................................................5TABLE6:MARKETWINDOWOFOPPORTUNITYFORKENYA.................................................................................7TABLE7:EMERGINGPRODUCTCASESOFINTERESTTOTANZANIA........................................................................8TABLE8:EMERGINGSERVICECASESOFINTERESTINTANZANIA...........................................................................8TABLE9:EMERGINGPRODUCTCASESOFINTERESTINKENYA..............................................................................8TABLE10:EMERGINGSERVICECASESOFINTERESTINKENYA..............................................................................9FIGURE1:CURRENTEXPORTSTATUSFROMDIFFERENTCLUSTERS........................................................................4

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1. IntroductionEKNhascommissionedMatchMakerAssociatesLtdtocarryoutastudyinTanzaniaandKenyathatprovide an analysis of the performance and sourcing of fruits and vegetables from Tanzania andKenya to variousmarkets. The studymaps the availability (what is producedwhere andwhen&whatisavailable;aclearoverviewofthesupplyanddemandcycles);estimatesthedemandwithintheEastAfricanRegionand in theEU; identifiesproducts thatare interesting for theNetherlandsmarket; identifiesnicheproducts thatarepresent inTanzaniaandKenyathatcouldbe interestingfortheEUmarket;andfinallyIdentifieswhichopportunitiesandwhichchallengesexistthatcanbeovercometoincreasetrade,benefittingTanzanianandKenyanproducersandtheDutchcompanies.

The study is expected to present a clear picture of the horticultural sector (fresh fruits andvegetables) in Kenya and Tanzania, and the results and recommendations emanating from it areexpected to provide Dutch traders of fruits and vegetables with an overview of opportunities toenterintostrategiccollaborationinthehorticulturalmarketinthesetwocountries.

Thestudy isconducted in fourphases (i)LiteratureReviewtounderstandthecontextandcurrentstatusofthehorticulturalsubsector(supplyside)ofthetwocountries;(ii)Scopingthemarketbase(Demand analysis) (iii) synthesis of demand and supply and agreement on areas to focus on fordetailedanalysis;(iv)Competitiveness/Businesscaseanalysis;(v)Finalreport.

This report covers phase three and provides a synthesis of the scoping exercise that has covereddemand and supply analysis.More details of the information covered in this synthesis report areavailable in the scoping report for Tanzania, Kenya and Demand analysis in the EU which areavailable separately. Based on the discussions of this synthesis report with EKN, the rest of thephasesensuedandeventuallyfinalbusinesscasereportswerewritten.

PresentationofthissynthesisreportstartswithasummaryofkeytrendsintheEUandUKmarkets,followedbypresentationofpotentialmatchofkeyhorticulturalproductsfromTanzaniaandKenyatowards thosemarkets. Thereafter potential investments areas are presented in order of priorityaccording to some key criteria and at the end a way forward that concluded this assignment ishighlighted.Thissynthesisisjustasummaryofkeyfindings,itismeanttoleadthereaderintothemaincountryscopingreportsandEUmarketstudythatprovidedetailedanalysis.2. KeytrendsintheEU/UKMarketsThreetradingblocstendtodominatetheglobaltradeinfreshproducenamelytheEuropeanUnion,NAFTA(US,MexicoandCanada)andAsiaandthePacific.TheEUisthebiggestimporteroffruitandvegetablesestimatedat50%ofglobal importsandproviding40%ofexports,howevertradingandprocessing are in the hands of only a few EU countries such as German, France, Netherlands,Belgium & Italy (trend data from ITC trade Map are provided in the EU Fresh Produce marketdemandstudy).

AsaresultofglobalisationandgreaterdemandinnewmarketslikeLatinAmerica,Asia,MiddleEastandAfrica,butalsothesideeffectoftheRussianembargoesandeconomiccrisisinseveralmarkets,aprocessofdiversificationof international trade flow is takingplace.This is resulting ina shiftofsupply chains leading to the opening of newmarkets and increase local demand from emergingeconomies.ThishasreducedtheattractivenessoftheEUasthenewmarketshavelesslegislationsandpotentiallyhighermargins.

AccordingtoFreshfel (EuropeanFreshProduceAssociation) in2014,theEU importedaround13.1milliontonnestothevalueof€12.5billion.Amajorityof87%ofimportedvolumeisfruit.Themaincategories importedarebananas,pineapples,applesandpears fromtheSouthernHemisphere,aswellastablegrapesandcitrusfruit.TheEUremainsanetimporterasthevolumeimportedexceedstheexportvolume.ThebiggestsuppliersincludeSouthAfrica,CostaRica,Morocco,Turkey,Ecuador,Chile,Colombia,Peru,Brazil,NewZealand,Argentina,Israel,EgyptandDominicanRepublic.

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Consumers worldwide are increasingly demanding a higher-value and more interesting range offruitsandvegetables.Theresultisthat,whilethevolumeoffreshfruitandvegetableconsumptionaroundtheworldisbarelyincreasing,thevalueofglobalfruitandvegetabletradeisrising,spurredonbynewdevelopingmarketssuchasChinaandthehigherevolutionofestablishedmarketssuchastheUS.Thesecountriesarethemajorcontributorstogrowthinglobalfruitandvegetablesimportdemand, but others like Thailand,Malaysia, South Korea and theUnitedArab Emirates have alsobecomepromisingmarkets.

While the Europeanmarketmight not be the growth engine for global exporters it once was, itnevertheless remains a very large and growing import market. The growth in nut and bananaimportshasbeenprominent,butrisingdemandformanyotherfruitandvegetablecategorieshasalso been creating opportunities, especially for producers close to the EU such as Morocco andTurkey.

3. KenyaandTanzaniapositionintheEU/UKmarketsTrade in fruit and vegetable products has been among the most dynamic areas of internationalagricultural trade, stimulatedby rising incomesandgrowingconsumer interest inproductvariety,freshness, convenience and year-round availability. Advances in production, postharvest handling,and processing and logistical technologies alongwith increased levels of international investmenthaveplayeda facilitating role. Fordevelopingcountries forwhich there isnoexception forKenyaandTanzania,tradeintheseproductshasbeenattractive inthefaceofhighlyvolatileordeclininglong-term trends in the prices for many traditional export products. Although many developingcountrysuppliershaveenteredthefield,relativelyfewhaveachievedsignificant,sustainedsuccess,reflectingthefactthattheindustryishighlycompetitiveandrapidlychanging.

As shown by data on exports from Tanzania and Kenya to EU and UKmarkets; Kenya has beenleadinginbuildingsuccessfultradingrelationsespeciallywithNetherlandsandUnitedKingdomwhorepresent72%ofallexportsfromKenya.ByvaluetheNetherlandsisthemainexportdestinationforfruitwith48%(Table1)and27%oftheoverallexportsandtheUnitedKingdomrepresentsof58%ofKenyanvegetableexportsin2015(Table2)andcombined45%ofoverallexportsfromKenya.

Table1:Kenyatop5fruitexportcountries-2015KenyaTop5FruitExportCountries2015 Value€(CIF) Volume/KG Netherlands 29,759,738 48% 10,649,000 47%France 16,830,981 27% 7,993,000 35%Germany 5,915,197 9% 720,000 3%UnitedKingdom 5,057,492 8% 1,157,000 5%Belgium 2,142,470 3% 883,000 4%EU28 62,628,431 22,587,000 Source:EUExporthelpAccessed10/01/2017

Table2:Kenyatop5vegetableexportcountries-2015KenyaTop5VegetableExportCountries2015 Value€(CIF) Volume/KG UnitedKingdom 103,547,779 58% 29,885,000 58%Netherlands 35,510,800 20% 9,544,000 19%France 20,480,625 11% 5,607,000 11%Germany 9,672,072 5% 2,822,000 6%Belgium 7,994,332 4% 2,757,000 5%EU28 179,318,173 51,102,000 Source:EUExporthelpAccessed10/01/2017

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IncomparisontoKenya,TanzaniahaslowerdirectexporttotheEUasshownbelow.However,ithasto be noted that due to current business models in the horticulture for Kenya and Tanzaniabusinesses,thereissignificantunderrepresentationofTanzaniaexportfiguresintheEU/UK,assuchexportshavebeenaggregatedwithKenyanproduce.TheNetherlandsandtheUnitedKingdomarethe main import countries representing 94% in total export value. The Netherlands is the mainimporterforfruitwith58%(Table3)and31%overallexportsandtheUnitedKingdomrepresentsof57%ofTanzanianvegetableexportsin2015(Table4)and57%oftheoverallexports.

Table3:Tanzaniatop5fruitexportcountries-2015TanzaniaTop5FruitExportCountries2015 Value€(CIF) Volume/KG Netherlands 5,312,181 58% 2,142,000 60%UnitedKingdom 1,715,278 19% 630,000 18%France 1,602,524 17% 703,000 20%Germany 303,638 3% 51,000 1%Spain 133,411 1% 36,000 1%EU28 9,190,543 3,599,000 Source:EUExporthelpAccessed10/01/2017

Table4:Tanzaniatop5vegetableexportcountries-2015TanzaniaTop5VegetableExportCountries2015 Value€(CIF) Volume/KG UnitedKingdom 6,684,893 57% 3,200,000 56%Netherlands 2,402,956 20% 786,000 14%Italy 1,730,091 15% 1,235,000 21%Belgium 524,760 4% 351,000 6%France 185,186 2% 81,000 1%EU28 11,733,019 5,746,000 Source:EUExporthelpAccessed10/01/2017

The Netherlands and the UK are key export countries and both face different challenges andopportunities forbothKenyaandTanzania. TheUKhasbecome increasingly relianton importsoffruitandvegetablesoverthepasttwodecades,withaself-sufficiencyrateofjust58%invegetablesand11%infruit.Thishasbeendriveninpartbylargeincreasesinimportsofnon-nativefoodstotheUK,suchaspineapples,melonsandavocados.TheEUiscurrentlythemainsourceoffoodimportsto theUK.According togovernmentdata in2015,40%ofall freshvegetables imports came fromSpainand28%camefromtheNetherlands,withPolandandFrancebothproviding4.0%imports.

Aminimum requirement for anyproducer andexporter is that theyhaveGlobalGap certification.GlobalGap is B2B pre-farm gate standard that covers the whole agricultural production processincludingachainofcustodytoenable full traceability.This includessmallholderswhoneedtobeGlobalGAPcertified.AllproductneedstobeaccompaniedbyaGGNnumber(GLOBALGAPnumberisa13-digitnumberthatuniquelyidentifieseachproducerandindividualmemberofaproducergroupintheGLOBALGAPdatabase.SomeEUretailersmightalsorequiresocialcertificationlikeBSCI,ETI,GRASP.Besidestheindustrystandardsproducerscouldgainanorganicand/orB2CcertificationlikeFairtrade,RainforestAllianceetc.whichcouldgiveanedgeoverothersuppliers.

All product imported into the EU must comply as a minimum with EU food safety laws andstandards.AllcompaniesundertaketheirownMRLtestingwiththenormformostistotestthefirstshipmentandthenrandomlytheconsecutiveshipments.

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4. Product-MarketMatch4.1 TanzaniaTanzaniascopingreport(supply)sideshowedthat,therearenumerousuntappedopportunitiestoproduce(basedonagroecologicalsuitabilityandtrackrecord)andtapmarketforvariousvarietiesofhorticulturalproductsinabidtoincreasetheshareofthecountryintheeconomicgrowth.Ithasbeennotedthathorticulture industry inTanzania iscurrently thefastestgrowingsubsectorwithinthe agricultural sector with an annual average growth of about 9 - 12 per cent per annum. Thisrecordofgrowth ismore thandouble theoverallannualgrowth rateof theagricultural sector. In2015,horticulture contributed38%of the foreign incomeearned from theagriculture sector. Theexportsvaluein2015reachedUS$545million,comparedtoUS$64millionin2005.Vegetablesandfruitscontributeabout50%to60%oftheexportvalue.Horticulturesubsectoremploysabout2.5millionpeople,whichmakestheindustryamajoremployerwithintheagriculturalsector.

Wide ranges of fruits are cultivated albeit in different degrees of intensity. These include tropicalfruitslikecitrus,mangoes,pineapples,avocado,jackfruitandguavas,butalsofruitssuitabletomoretemperate climates (the highlands) such as apples, pears, peaches, plums, blackberries andstrawberries.VarietiesofvegetablesproducedinTanzaniaincludeAsianvegetables,babycorn,babymarrow, beetroots, beans, cabbage, carrots and baby carrots, cauliflower, eggplant, kale, leeks,onions and shallots, okra, peas, potatoes, spinach and tomatoes to name a few. Horticulturaldevelopmentstrategies inTanzaniahasshownthatthecountrycoulddevelopdifferentclustersorportfolio of horticultural investments based on different comparative advantages. The status oftheseclustersissummarisedinfigure1below.Figure1:Currentexportstatusfromdifferentclusters

City%

Mombasa

Nairobi

Arusha Moshi

Tanga

Zanzibar

Dar es Salaam Morogoro

Kibaigwa Dodoma

Iringa

Makambako

Njombe

Songea

Lindi Mtwara

Mbeya

Sumbawanga

Mpanda

Mwanza

Kigali

Bujumbura Shinyanga

Singida

Bukoba Musoma

Kigoma

Masasi

Tabora

Manyara

Coast Region

Nanyumbu Newala

Nachingwea Lindi Rural

SOUTHERN ZONE Emerging exports of

Avocado (1.500 Mt /yr). Tomato& potato base.

±5 off takers

NORTHERN ZONE Predominantly High Value Veg (Beans &

peas, berries) + Spices. Export >10,000 Mt/year. More than 20 off takers,(mostly TAHA members)

LAKE ZONE Predominantly

Local market with emerging EAC

exports ± 3 main off takers

COASTAL ZONE

Temperate fruits + Spices ± 5 off takers

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Tanzaniaisamongworldtop20producersoffreshvegetablesaccordingtoFAOSTATdata,althoughit has an insignificant position in the export of vegetables, mainly due to the current businessarrangements whereby Tanzanian exporting companies are subsidiaries of large aggregationcompaniesoftenbasedinKenya,andthesekindsofexportsarenotfullycapturedinTanzaniadataandeventuallyinpositioningTanzaniaintheexportmarkets.

Thehorticultureindustryisdominatedbysmall-scalefarmerswithlessthan2hectares,especiallyinvegetables production whereby they account for about 70% of vegetable producers. Majority ofthesesmall-scalefarmersarenotconnectedtotheregionalandinternationalmarketsandthereforehavelimitedchancetoconductexportbusinessthemselves.Someproducershaveformedgroupstoproduce as contract farmers or out growers to large scale export firms. Currently, Tanzania’shorticulture industry has about 40 large-scale growers/exporters (off takers), majority of themlocatedinthenorthernTanzania(ArushaandManyararegions).

Lessthan10%ofthehorticulturalproductsproducedinTanzaniaareexportedtoEuropeanUnion,regionalmarkets (i.e.EastAfricanCommunity–EAC,SouthernAfricanDevelopmentCommunity–SADC) and Middle East. This implies that the local market in fresh form consumes most of thehorticulturalproduceandaverysmallproportionisprocessed,althoughasignificantproportionalsogotowasteduetolackofpost-harvestfacilitiesgivenperishablenatureofhorticulture.

From the market scan results in the EU/UK done as part of this study (attached as a separatedocument) a good number of opportunity windows where Tanzania and Kenya could tap fordifferenthorticulturalcropshavebeenestablished.SynchronizingthepeakdemandmonthsinEU/UKwiththeproductioncalendarinTanzaniaandKenyaandthefollowingTable5emergingmarket-productmatchhasbeenestablished.

Table5:MarketwindowofopportunityforTanzaniaProduct PeakdemandmonthsinEU/NL RemarksforTanzaniaAvocado February-September Good match only missing out in

Mar-April.Mango October–MidNovember

May-JulyTheonlywindowisonemonthinNovember.

SweetOnions EndDecember-March Good match only missing out inMarch.

FreshGarlic November-February TotalmismatchSoft Fruits (strawberry, berries,raspberry,blackberry)

October-May PerfectMatch

FineBeans AllYearRound PerfectMatchonlymissingoutintheMay-Septwindow.

SugarSnaps,Mangetout April–MayOctober-November

Very good match and greatopportunity to expand. OnlymissingoutintheMaywindow.

Herbs (Chives, Mints, Garlic,ginger,cloveetc.)

Unknown Tanzania has great productionconditionsandhasatracksecondof exports to EU/UK andMiddleEast.

The message from the opportunity window is indicative of starting point for identification ofcommoditieswhosedemandandsupplytimingiscongruent,butfurtheranalysisisrequiredofexacttermsandconditionsthatwouldmakethebusinesscasesattractive.Henceonceaselectionofafewcommodities is done further in-depth analysiswill be doneof issues such as: requiredquantities,qualityspecifications,indicativepricesanddegreeofcompetitivenesswithothersupplierstobeabletodeterminetheactualinvestmentopportunities.

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4.2 KenyaTheKenya scoping report (supply) side showed that, the horticultural industry in Kenyahas beenverysuccessfulinthelastthreedecades.Kenyahasalonghistoryofgrowinghorticulturalcropsforbothdomesticandexportmarkets.Kenya’sidealtropicalandtemperateclimaticconditionmakesitfavourableforhorticultureproductionanddevelopment.Thehorticulturalindustryhasgrownfromitsbaseofsmallbusiness/farmer,tobeingdominatedbysophisticatedbusinessesthatarebecomingincreasinglyverticallyintegrated.

Currentlythehorticultureindustryisthefastestgrowingagriculturalsub-sectorandisrankedthirdintermsofforeignexchangeearningsfromexportsaftertourismandtea.Fruits,vegetableandcutflowerproductionarethemainaspectsofhorticulturalproductioninKenya,however increasingly,medicinalandaromaticsplants(MAPS),whichincludeherbsandspicesarebeingproduced.In2015Kenyaproduced12MillionMTofhorticulturalproducevaluedatKES211Billion.Majorfruitsgrownareavocado,mango,passionfruit,pineapple,banana,pawpaw,andwatermelon;whilevegetablesincludetomato,kale,cabbage,onion,potato,Frenchbeans,chillies,snowpeas,sugarsnaps,runnerbeans,babycorn,gardenpeas,Asianvegetables(e.g.Okra,Dudhi,Valore,Turia),herbsandspices.

HorticulturalcropsinKenyacanbeproducedinawiderangeofecologicalzonesfromthehighandmidrainfall regionstothesemi-aridandaridregions.Thewidegeographicalandclimaticdiversitytogetherwithcomplementary irrigationhaveallowedproductionofdifferenttypesofhorticulturalcrops that target both domestic and export markets. Consequently, Kenya is able to producehorticultural products year-round.Major horticultural production clusters are shown in the figurebelow.

Major horticulture cluster

Horticulture products for export to EU from North Tanzania is

through JKIA Nairobi

Figure2:MajorhorticulturalproductionclusterinKenya

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Kenya’s right climate, competitive labour and goodmarket access in terms of regular flights hasmade it successful in growing horticultural crops particularly for the export market. Exporthorticultureisanimportantsourceofincomefortheresourcepoorintheperi-urbanandruralareaseither through smallholder out grower schemes or through employment on commercial farms.Smallholder production constitutes 80% of all growers and produces 60% of total horticulturalexports. There are over 200 fruits and vegetables exporters in Kenya of whom 137 are activemembersoftheFreshProduceExportersAssociationofKenya(FPEAK).Majorityexportersaresmallandmediumscale(SMEs)andabout20%arelargecompanies.

Major importingcountriesofKenya’shorticulturalproducearemainly intheEuropeanUnion(EU)and the following Table 6, emerging market-product match has been established. Other exportdestinations include United States of America (USA), Canada, Middle East, Japan, Russia, SouthAfrica and Australia. Competition in these markets is stiff due to a large number of otherinternationalsupplierssuchastheColombia,Ecuador,Ethiopia,Spain,Morocco,Israel,Egypt,IndiaandChinaamongothers.

Table6:MarketwindowofopportunityforKenyaProduct PeakdemandmonthsinEU/NL RemarksAvocado February-September HassAvocado: (available frommid June –mid

September);FuerteAvocado(fromMarch/April–midSeptember)

Mango October–MidNovemberMay-July

Apple&KeittMango(availablefromNovember– March); Kent Mango (from February –March); Ngowe Mango (from November –MarchandagainfromMay–July).

Fine Beans & extra finebeans

AllYearRound Perfect match available all year round(varieties: Amy, Teresa, Samantha, Serengeti,JuliaandPaulista)

Sugar Snaps, Mangetout

April–MayOctober-November

Perfect match available all year round (sugarsnapsCascadiavariety)

Herbs (Chives, basil,coriander, thyme androsemary)

Unknown Kenya is a good supplier to United Kingdom,France,Netherlands,Germany,Belgium

5. Investmentareas5.1 ExplanationofthecriteriafortheidentifiedinvestmentareasA snowball process has been used to identify potential investment areas and possible businesscases.During thescopingexerciseagoodnumberofproducers,exportersandother stakeholdershave been interviewed who are engaged in the production and marketing of horticultural cropsmainlyforexportmarketsandbasedontheirexperiences,areasattractingfurtherinvestmentshavebeen mentioned. Meetings with development organisations active in horticulture and withhorticulturalmemberassociationswerealsousedtovetpotentialinvestmentareas.

Importantcriteriathatwehaveusedtoprioritisesuchopportunitiesincludeamongothers:• Theproduct–marketmatch(seetable1and2above)• Presenceofpotentialinvestorsthatcouldpullthebusinesscase• Matchoftheinvestmentareawithongoingpromotionalinitiatives(synergy)• ValidatedbymanystakeholdersintheindustryAlthoughthesecriteriacouldbefurtherrefinedastheassignmentcontinues,theyhavebeenusedtohighlightemergingbusinesscasesthataredescribedinthenextsection.

5.2 Emergingbusinesscases5.2.1 TanzaniaBasedonthecriteria,thefollowingproductandservicebusinesscaseshavebeenlistedduringthescopingexerciseinTanzaniaasshowninTable7andTable8respectivelybelow.

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Table7:EmergingproductcasesofinteresttoTanzaniaS/No Product Case Justification1 Avocado Joint venture (JV) in increasing

production, productivity withentrepreneurs with farms /trackrecord

RungweAvocados,4,000SHFinNjombe,areinterested

2 Beans, Sugar Snaps,Mangetout

Joint venture (JV) in increasingproduction, productivity withentrepreneurs with farms /trackrecord

Steve Moria (Moshi), Serengeti Fresh(Arusha)etc.areinterested

3 SoftFruits (strawberry,berries, raspberry,blackberry)

Joint venture (JV) in increasingproduction, productivity withentrepreneurs with farms /trackrecord

PerfectmatchwithEUwindow.Steve Moria has interest and farmthoughnotrackrecordyet.

4 CanningofFineBeans Joint Venture to set up beanscanninginvestment

ArushaBloomsisinterested

5 Potato (Sweet andIrish)

Commercialising new varieties inSweet (OFP) and Irish potatoes forChips (Mainly for local /regionalmarkets.

Build on SAGCOT, TAHA and Nl-TZGovernmentagreementetc

6 HerbsandSpices NB:Thecolouredareasareconsideredlowerhangingfruits

Table8:EmergingservicecasesofinterestinTanzaniaS/No Product/service Case Justification1 Strategic Pack house/

Logistics servicesnearbyAirports

Partnership inestablishingstateofartpack houses & logistics & servicecentre

TAHA Fresh, Serengeti Fresh areinterested,

2 Packagingmanufacturing(export), Cold chainequipment

Jointventure(JV)tosetupstateoftheart packaging for EU customerspecifications & supply cold chainequipment

SerengetiFreshisinterestedTAHAFreshisalsointerestedCold Storage Manufacturer in NLinterested(Celtic)

3 Logistics infrastructureupgrading SouthernTanzania

Off taker investments in Logistics inSouthern Tanzania (pack house atSongweAirport,containerisationalongwithTAZARAtoDaresSalaamPort)

Potential link with SAGCOT & TMEAGrowthHub)project

4 AirfreightCargo Feasibility of aggregation andairfreighting, insurance from differentclustersinTanzania

TAHA Fresh is working on it andlookingforpartners

NB:Thecolouredareasareconsideredlowerhangingfruits5.2.2 KenyaThe following product and service business cases have been listed during the scoping exercise inKenyaasshowninTable9andTable10respectivelybelow.

Table9:EmergingproductcasesofinterestinKenyaS/No Product/service Case Justification1 Avocado Jointventure(JV)inavocadofarm MaraEPZisinterested2 Mango,papaya Joint venture (JV) Canning and

pulpingfacilityforfruitMara EPZ is eager to set up facility atKenyaEPZ

3 Herbs (especiallyChivesandBasil)

StrategicpartnershipswithEUbasedtraders

A European appetite for basil hasopened a window of opportunity forfarmers inNakuruCounty inKenyawhoarenowearningupto$2000amonthinexports. International buyers say EastAfrica meets a paltry 15% of theirdemand

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4 Beans,TSB,etc. Strategic partnerships with EUsupermarketsandtraders

Few Kenya SME exporters interested:e.g.WAMU,KANDIA,KENYAFRESH

NB:Thecolouredareasareconsideredlowerhangingfruits

Table10:EmergingservicecasesofinterestinKenyaS/No Product/service Case Justification1 Potatoes storage

facilityJoint venture (JV) to set up potatostoragefacility

Patrick Garner is interested;HortIMPACThasmatchinggrant

2 3PL cold chain or HighCareFacility(HCF)

Joint venture (JV) to set upindependent 3PL cold chain - KenyaandNLinvestorsarerequired

Celtic Kenya Limited has modulartechnologyKenyaFreshLtdisinterestedinHCFJV

6. ProposedwayforwardAdebriefingsessionwasconductedwithBertRikken,EKN,inNairobionTuesday17thJanuary2017.Themeeting endorsed the progressmade in the scoping phase. The comments from EKN on thescoping reports were made and have been incorporated in the final version of the respectivereports.Thenextstepsthatwereagreedincludedthefollowing:• Half-daymeetingswereorganisedwithkeystakeholders inTanzaniaandKenyatovalidatethe

emergingbusinesscasesandespeciallytheshortlist.InTanzania,thismeetingwasorganisedincollaboration with TAHA and in Kenya in close collaboration with HCD and FPEAK. Theconsultationswiththekeystakeholdersdefinedthebusinesscasespercountrytostudyfurther.

• Fieldanddeskstudycontinuedtodeveloptheselectedbusinesscases.Also,verificationofthedemandinEU/NLaswellasDutchinterestwasundertaken

• A first fulldraftof the final reportwassharedwithEKN inmid-February.Hereafter,EKNafterincorporatingEKNcomments,finalversionwasdeliveredinearlyMarch;

• Finally, ithasbeenagreedwithEKNthatpresentationofthemainfindingswillbedonebytheTeamLeaderduringameetingtobeorganisedbyGroenteFruitHuisin2017.