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Guide to Export of Fresh and Processed Mango in Kenya

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Guide to Export of Fresh and Processed Mango in Kenya ITC Guide to export of fresh and processed mango from Kenya A manual for exporters: August 2015 Author: Tom Olunga Owuor – International Consultant Nairobi, Kenya. ABSTRACT Views expressed in this paper are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. The designations employed and the presentation of material in this paper do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area, or its authorities, or concerning the delimitation of its frontiers or boundaries. This document was produced as a part of the Promoting Intra-regional Trade in Eastern Africa Project (2014- 2016) funded by the Government of Finland. The project focuses on increasing exports from Kenya, is implemented by the International Trade Centre together with local project counterparts in each country: the Kenya Export Promotion Council and the Horticultural Crops Directorate (HCD). The objectives of the project are to increase the export competitiveness of small and medium-sized enterprises (SMEs) in the mango and chilli value chains and to enhance the services delivered to SMEs by Trade Support Institutions. ii ACRONYMS AND ABBREVIATIONS BRC British Retail Consortium CAC Codex Alimentarius Commission CDA Coast Development Authority CMR Combined Movement Record CIF Cost Insurance and Freight FAO Food and Agriculture Organization FPEAK Fresh Produce Exporters Association of Kenya GCC Gulf Cooperation Council HACCP Hazard Analysis and Critical Control Points HCD Horticultural Crops Directorate IPM Integrated Pest Management ITC International Trade Centre KALRO Kenya Agricultural and Livestock Research Organization KEBS Kenya Bureau of Standards KEPHIS Kenya Plant Health Inspectorate Services KNSWS Kenya Single Window System KOAN Kenya Organic Agricultural Network KPA Kenya Ports Authority KRA Kenya Revenue Authority KVDA Kerio Valley Development Authority LAPSSET Lamu Port South Sudan and Ethiopia Transport Corridor KEMPMA Kenya Mango Producers and Marketing Association LBDA Lake Basin Development Authority MRLs Minimum Residue Levels NCSL Natural Centre for Statistics & Information – Oman OFIC Oman Food Investment Holding Company OIC Organization of Islamic Cooperation PAMAP Public Authority of Marketing Agricultural Produce – Oman UAE United Arab Emirates USDA United States Department of Agriculture USDA APHIS USDA – Animal and Plant Health Inspection Service iii EXECUTIVE SUMMARY The export of fresh and processed mangoes, to which this document is dedicated, is a handbook that will guide Kenyan SMEs with intention of investing in this subsector. Mango production in Kenya has for a very long time been dominated by the coastal region and the greater Ukambani areas of Machakos, Kitui and Makueni Counties. This position has, however, been recently challenged by the introduction of commercial varieties on the non-traditional mango-growing areas of north-eastern, Nyanza, western and Rift Valley regions. Based on this, it has been estimated that production is likely to reach 878,000 tons in 2017 and 1,415,000 tons in 2022, up from 581,290 tons in 2013. This increased production informs the need to develop a roadmap that will lead to mainstreaming mango value chain as a major foreign exchange earner in this country. In order to ensure this is done successfully, the formation of an umbrella organization that coordinates all the industry activities, including marketing, is necessary. Overall, Kenya’s mango industry has a key competitive advantage that makes its value proposition unique to the market. The country prides itself on having one of the longest mango seasons, which ranges from October to March (high season), and another shorter season that ranges from April to June, covering mainly the coastal region. This makes it possible for Kenya to supply its main market (the Middle East) when the big suppliers of India and Pakistan are off season. To the advantage of the processing industry, the Ngowe variety, grown mainly at the coast, has proven to produce very high-quality pulp that is used for juice processing, mango-based drinks, jams, mango ice cream, desserts, puddings, bakery fillings, baby foods, flavours as well as yoghurt and confectionery. There is also a growing international demand for dried mangoes from Kenya but this area has not attracted big investors like the ones found in mango pulp processing. This scenario has therefore led to the mushrooming of very many small players with semi-manual equipment that cannot guarantee the quality and quantity required by the market. In effect, the exporters have had to buy from these small players, consolidate and refine within their operations to at least come up with something that is acceptable to the market. Investment in this subsector is, however, also expected to come from the devolved governments since most counties in Kenya are at the moment exploring joint venture partners with which their counties can establish mango juice processing factories. The coastal counties including Tana River, Lamu, Kwale, Kilifi, Taita Taveta and Mombasa have, in their development blue prints, positioned mango as key for value addition. These are timely interventions that will reduce the percentage of fruit losses by channelling these fruits to the processing industry. For purposes of creating market linkages, the annex part brings about the much needed market contacts that are not exclusively for mangoes but for other fruits and vegetables as well. iv TABLE OF CONTENTS ABSTRACT ................................................................................................................................................... ii ACRONYMS AND ABBREVIATIONS .......................................................................................................... iii EXECUTIVE SUMMARY ............................................................................................................................. iv TABLE OF CONTENTS. .............................................................................................................................. v 1. MANGO PRODUCTION .......................................................................................................................... 1 1.1 The production areas ..................................................................................................................... 1 1.2 Period of production ....................................................................................................................... 3 1.3 Varieties .......................................................................................................................................... 4 2. MANGO EXPORT IN KENYA .................................................................................................................. 8 2.1 Evolution of exports of mangoes from Kenya ................................................................................ 8 2.2 The export markets ........................................................................................................................ 9 2.3 Import duties ................................................................................................................................. 23 2.4 Future markets ............................................................................................................................. 25 3. MANGO PROCESSING ......................................................................................................................... 26 3.1 Types of products ......................................................................................................................... 27 3.2 Processing facilities ...................................................................................................................... 30 3.3 The export markets ...................................................................................................................... 34 3.4 Future markets ............................................................................................................................. 39 4. PACKAGING, MARKETING AND LABELLING ..................................................................................... 41 4.1 Packaging standards and specification ........................................................................................ 41 4.2 Types of packaging used for fresh and processed mango .......................................................... 42 4.3 Labelling, marking and coding ..................................................................................................... 45 4.4 Marketing standards ..................................................................................................................... 46 4.5 Price systems ............................................................................................................................... 47 5. CERTIFICATION .................................................................................................................................... 49 5.1 Phytosanitary certificate ............................................................................................................... 49 5.2 Inspections ................................................................................................................................... 50 5.3 Pests, diseases and restrictions ..................................................................................................
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