Fintrac's Kenya Horticulture Development Project Targets Selected Sectors

Nairobi, Kenya (March 20, 2004) - Fintrac's Horticulture Development Center (HDC) in Kenya, which was officially launched December 10, 2003, has targeted six high-value product categories in its 2004 workplan. Among selected sectors where Fintrac market research has identified growth and profit potential are passion fruit, chili products, vanilla and spices, smallholder flowers, tree crops for processing (mango and cashew), and vegetables (onions, carrots, cabbage, and tomatoes) for sale to local markets. For its first year of operations, HDC has set specific performance targets to achieve including an increase of client farmer incomes by $4 million, training of 50 associations and 5,000 growers in EUREPGAP protocols, the establishment of 50 demonstration plots for onion, garlic, okra, kale, cabbage, and tomatoes, and 30 commercial demonstrations of at least three new products.

The Passion Fruit Program will focus on increasing production and yields through improved planting material and agronomic techniques. In cooperation with KARI, grower associations are being trained to produce their own disease-tolerant rootstocks and select clean scion materials for grafting. New varieties and cultivars will be introduced for both the fresh and processing sectors and for local and export markets. The nationwide program is targeting 10,000 producers and will provide assistance in production, postharvest handling, and marketing. HDC is also talking to investors interested in setting up processing plants.

The Chili Products Program will introduce new crops targeted at the export market for both fresh and processed product. Chili crops being targeted include African Birdseye, jalapeno, ethnic hot peppers, and paprika. African Birdseye chili is a particularly attractive crop for marginalized growers in Western and semi-arid areas such as Laikipia. Demand is strong since the capsaicin oil extracted from this type of chili is being used increasingly as an ingredient in natural pharmaceutical products.

The Vanilla and Spices Program is aimed at significantly increasing incomes of smallholders. Most spices are derived from labor-intensive cropping and processing systems for which smallholders have a comparative advantage. A commercial trial plot for vanilla has already been established at Maragua in Central Province. HDC is also working with two local tissue culture laboratories to produce vanilla plantlets for distribution to up to 2,000 smallholders this year. Other spices, including cardamom, ginger and turmeric, which have strong domestic demand, will be introduced to the program during the year.

The Smallholder Flowers Program will focus on local market flowers and working with exporters who already have a market and are buying outdoor flowers from smallholders. Kenya is the leading African producer of flowers for the EU market. It has the potential to provide high income for smallholders who can adopt a professional approach. HDC will work with KARI, exporters, and grower associations to increase production, quality and explore new varieties and markets. Flower varieties suitable for smallholders include - Ornithogalum sps, Eryngium, Moby Dick (Aesclepia sps), Carthamus, Mollucella, Amy Majus, Calla lilies, Tuberose, and Agapanthus.

In the Tree Crops Program, HDC will be focusing on providing technical assistance to growers with cashew nut and mango trees. Global demand for cashews is strong and sufficient processing capacity already exists within the country to absorb more than three times the current production of less than 5,000 tones. Low yields per tree are mainly due to high levels of powdery mildew causing flower abortion. HDC is developing an IPM strategy and training program which will have a rapid impact on the quantity of nuts available for processing. In the case of mango trees, the problem is that Kenya is not competitive in the international market for fresh fruit. In cooperation with a large international processor, HDC is organizing the construction of a small-scale mango pulping facility that will be supplied with raw material from small-scale producers along the Tana River.

Although Kenya is an efficient and sophisticated producer of fine beans and other vegetables for the EU market, smallholder yields of local market vegetables are low and costs of production high. The goal of the Local Market Vegetables program is to increase the supply, quality, and reliability of domestically produced fresh vegetables on the local market. Target products include onions, carrots, cabbage, tomatoes and indigenous vegetables, for which demand is increasing rapidly. In partnership with Regina Seeds and other input suppliers, HDC has initiated a program to establish 100 demonstration plots throughout the country. HDC is also helping to negotiate supply contracts with supermarkets and wholesalers of domestic fresh produce.