Fao Value Chain Analysis
FAVALUE CHAIN ANALYSIS: A CASE STUDY OF MANGOES IN KENYA
Prepared by the Sugar and Beverages Group Raw Materials, Tropical and Horticultural Products Service Commodities and Trade Division Food and Agriculture Organization of the United Nations
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Table of Contents
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I. II. III. IV.
INTRODUCTION MANGO PRODUCTION, MARKETING AND PROCESSING FACTORS PREVENTING THE DEVELOPMENT OF THE MANGO SUPPLY CHAIN CONCLUSIONS AND RECOMMENDATIONS
3 4 9 10
3
I.
INTRODUCTION
This document reviews fruit production and yield trends, mango production, marketing and processing of smallholders and traders along the mango value chain in Kenya. It also examines future development prospects. The horticultural sub-sector in Kenya comprises mainly fruits, vegetables and cut flowers, and accounts for about 10 percent of urban food consumption and a much larger percentage in rural areas. Vegetables dominate horticultural production, followed by fruits and cut flowers. In 2003, a total area of 373 000 hectares was dedicated to horticultural production, producing 4.35 million tonnes of horticultural products, valued at US$494.4 million. The contribution to Gross Domestic Product (GDP) was 3.5 percent and 14.5 percent to Agric ultural Gross Domestic Product1. However, the value of production was lower than that of 2002 and 2001 which were US$503.6 million and US$528.4 million, respectively. The subsector also provides employment to a large number of Kenyans, currently estimated at 2 million, both direct and indirect jobs. Table 1: Percentage of cultivated area, volume of production and value of horticultural products (2003) % cultivated area %Volume of production % Value of Production Vegetables 59 55 57 Fruits 40 44.8 32 Cut flowers 1 0.2 11 Fruit and vegetables are also important sources of foreign exchange earnings, which ranged between US$260 and US$350 million in recent years, ranking second to tea, and accounting for 21 percent of total domestic exports in
Prepared by the Sugar and Beverages Group Raw Materials, Tropical and Horticultural Products Service Commodities and Trade Division Food and Agriculture Organization of the United Nations
2
Table of Contents
Page
I. II. III. IV.
INTRODUCTION MANGO PRODUCTION, MARKETING AND PROCESSING FACTORS PREVENTING THE DEVELOPMENT OF THE MANGO SUPPLY CHAIN CONCLUSIONS AND RECOMMENDATIONS
3 4 9 10
3
I.
INTRODUCTION
This document reviews fruit production and yield trends, mango production, marketing and processing of smallholders and traders along the mango value chain in Kenya. It also examines future development prospects. The horticultural sub-sector in Kenya comprises mainly fruits, vegetables and cut flowers, and accounts for about 10 percent of urban food consumption and a much larger percentage in rural areas. Vegetables dominate horticultural production, followed by fruits and cut flowers. In 2003, a total area of 373 000 hectares was dedicated to horticultural production, producing 4.35 million tonnes of horticultural products, valued at US$494.4 million. The contribution to Gross Domestic Product (GDP) was 3.5 percent and 14.5 percent to Agric ultural Gross Domestic Product1. However, the value of production was lower than that of 2002 and 2001 which were US$503.6 million and US$528.4 million, respectively. The subsector also provides employment to a large number of Kenyans, currently estimated at 2 million, both direct and indirect jobs. Table 1: Percentage of cultivated area, volume of production and value of horticultural products (2003) % cultivated area %Volume of production % Value of Production Vegetables 59 55 57 Fruits 40 44.8 32 Cut flowers 1 0.2 11 Fruit and vegetables are also important sources of foreign exchange earnings, which ranged between US$260 and US$350 million in recent years, ranking second to tea, and accounting for 21 percent of total domestic exports in