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Market Opportunities for African Agriculture - International Food ...

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major traditional and non-traditional agricultural exports over the past two decades are<br />

presented in the lower half of Appendix II Table 4.<br />

Compared to that of 1981-83, the value of Kenya’s traditional agricultural exports<br />

decreased significantly by 1990-92. The export earnings from coffee were particularly<br />

high during this period because of the price boom. There was another upsurge in coffee<br />

prices during 1993-96. As a result, the export value of coffee increased by more than fifty<br />

percent by 1994-96. Following the upsurge, there was a sharp decline in coffee prices<br />

during the late 1990s. Moreover, production of coffee in Kenya was affected by a drought<br />

in 1997. Due to the long growing season <strong>for</strong> coffee, the effects of drought took place with<br />

a lag reflecting declined production in 1999. Consequently, the value of coffee exports as<br />

well as its share in total agricultural exports declined significantly in 1998-2000.<br />

However, the value of Kenya’s traditional exports and its share in the country’s total<br />

agricultural exports increased during the 1990s as both the value and share of tea exports<br />

increased significantly. For tea, the effect of drought was mitigated by high world prices<br />

(IMF Staff Team, 2002). The per<strong>for</strong>mances of some major non-traditional agricultural<br />

exports of Kenya are discussed below.<br />

Horticulture<br />

Large-scale horticultural production in Kenya started during World War II in<br />

order to meet the demand <strong>for</strong> food of the Allied <strong>for</strong>ces stationed in East Africa<br />

(McCulloch and Ota, 2002). Since then Kenya’s exports of horticultural products grew<br />

rapidly. Between 1968 and 1986, the volume of fresh horticultural exports of Kenya rose<br />

almost 25-fold (Schapiro and Wainaina, 1991). By 1986 it was the third largest source of<br />

<strong>for</strong>eign exchange among agricultural exports and accounted <strong>for</strong> over 3 percent of the<br />

value of all exports, as against 0.3 percent in 1968 (Schapiro and Wainaina, 1991). In<br />

1990 the value of horticultural exports of Kenya was about US$162 million. By 1998 the<br />

value had almost doubled to US$319 million.<br />

98

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