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Kenya eyes slice of 22.3tn global superfood market

This will be tapped through the Co-operatives movement, CS Chelugui says.

In Summary

•Chelugui said the government is focusing on sustainable agricultural value chain reforms.

•These include global market access for Kenyan avocado, macadamia and blueberry farmers, by harnessing the latent power of co-op societies and MSMEs.

Kakuzi managing director Chris Flowers, Deputy Chief of Staff at the Deputy President's office Eric Wachira and Co-operatives and Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui/HANDOUT
Kakuzi managing director Chris Flowers, Deputy Chief of Staff at the Deputy President's office Eric Wachira and Co-operatives and Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui/HANDOUT

The government plans to use the local co-operatives network to position Kenya as a leading superfood producer and exporter.

According to Co-operatives and Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui, the government is zeroing in on the $171.8 billion (Sh22.3 trillion) global superfoods market.

This is part of the agricultural transformation deliverables under the Bottom-Up Economic Transformation Agenda (BETA).

Speaking during a fact-finding tour of listed agribusiness and superfood producer Kakuzi Plc orchards and Packhouse in Murang’a County, Chelugui said the government is focusing on sustainable agricultural value chain reforms.

These include global market access for Kenyan avocado, macadamia and blueberry farmers, by harnessing the latent power of co-op societies and MSMEs as the world’s enthusiasm and demand for superfoods continue to grow.

Globally, as consumers strive to enrich their dietary diversity, superfoods have gained popularity as they are naturally loaded with high dietary fibre, vitamins, minerals, phytochemical, and complex carbohydrates.

Besides the nutritional benefits, superfoods also assist in improving digestion, reducing blood glucose, minimising inflammation, lowering blood cholesterol, and preventing chronic health issues such as diabetes, heart disease and obesity.

According to global research firm IMARC Group,  the global superfoods market size reached $ 171.8 billion in 2023.

The firm projects the market to reach $262.3 billion (Sh34 trillion) by 2032, exhibiting a growth rate of 4.6 per cent during 2024-2032.

Kenya's annual exports' value is estimated to reach $20 billion (Sh2.6 trillion) by 2035, according to Stancharts’s latest future of Africa Trade report, with the African Continental Free Trade Area (AfCFTA) boosting the exports by an additional 35 per cent.

Currently, the value of exports is slightly below the Sh800 billion mark. 

The escalating demand for superfood-infused snacks, the rising adoption of veganism and vegetarianism, and the growing consciousness about preventive healthcare measures are some of the major factors propelling the market, which Kenya seeks to tap.

Conscious of the growing market opportunity, the government, Chelugui said, will adopt a public-private partnership with leading growers such as Kakuzi to provide much-needed technical capacity building for local farmers under the Co-operatives movement.

“Kenya is already doing well in producing superfoods such as avocado, macadamia and blueberries which are also beginning to feature. We are number five in avocado exports and can easily get to number one, but only if we maintain global standards relating to crop husbandry, traceability, and sustainability, as every fruit exported carries Kenya’s reputation,” Chelugui said.

He said the country's co-operative societies and other MSME agri-business players have an opportunity to learn and forge partnerships with large players, who are willing to provide capacity building in farmer training, marketing and extension services.

"This will enable us to play in the top league as quality superfoods producers and exporters,” the CS said.

Kenya exported avocados to over 152 destinations in 2023, according to the Horticulture Crops Directorate which is under the Agriculture and Food Authority (AFA).

The volumes exported increased by 19.6 per cent from 391,507 tonnes in 2022 to 468,438 tonnes in 2023, with the value going up to Sh156.7 billion, up from Sh147.1 billion.

Kakuzi is the single largest producer of avocados and macadamia nuts in Kenya, accounting for an estimated 12 per cent of all avocados exports.

As part of superfoods market development strategy, beyond avocados, the firm was also the first Kenyan company to undertake commercial blueberry production.

Managing director Chris Flowers said: “We believe blueberries are yet another key crop that will build Kenya’s export earnings and international reputation as a key agricultural producer of superfoods.” 

He noted that required global standards must be met and maintained to ensure continued growth in market access.

"Our success is primarily built on five key pillars: We export quality products, we export products with impeccable traceability credentials, we grow our products responsibly, we grow our products sustainably, and we lift others as we grow,” Flowers said.

Kakuzi has been undertaking a smallholder development initiative that educates and builds the capacity of Kenyan farmers.

Under its Kakuzi Academy platform, the firm provides extension services to more than 3,000 farmers across the country.

Agriculture remains a key driver of the economy, forecast to grow by 6.3 per cent this year, according to National Treasury.

Overall GDP growth is projected to increase from 6.1 per cent last year, having picked from 4.4 per cent in 2022 when the country took a hit from the impact of the Covid-19 pandemic.

According to Treasury, this year’s growth will be driven by raising agricultural productivity as the government implements key components of the Bottom Up Economic Transformation Agenda, which is President William Ruto’s plan to drive growth, create wealth and jobs.

Priority areas in the agriculture sector includes value chains in crops and livestock.

Targeted sub-sectors include leather, textile and apparel, dairy, edible oils, tea and rice.

According to the Kenya National Bureau of Statistics, in the first three quarters of 2023, the agriculture sector rebounded strongly following improved weather conditions and the impact of fertiliser and seed subsidies provided to farmers by the government.

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