Products/markets SPS compliance constraints Ongoing <strong>and</strong> plannedassistanceDairy productsDairy industry is predominantlySpecific & ongoing assistancesmall-holder based in ASALs.include:Annual production is now estimatedto be 4 billion liter (of which 3.5USAID: Regional Agriculturebillion is for local consumption. Past<strong>Trade</strong> Expansion Supportemphasis was mostly on increasing(RATES) including COMESAproduction, but recently efforts areDairy SPS protocol.made to improve quality.Vending of raw milk throughinformal markets accounts for some80% of total sales. Poor hygienicpractices in milk collection <strong>and</strong>h<strong>and</strong>ling are reported. Presence ofanti-microbial residues is main publichealth concern <strong>and</strong> poses exportconstraints. There are about 26 dairyplants, 10 of which have capacitiesmore than 10,000 l/day.Industry is comparatively moredeveloped than dairy industries ofmany other countries in sub-SaharanAfrica. Dairy products are mainlyexported to EAC countries <strong>and</strong> thereare limited opportunities to enhancethis trade. Potential markets includeMiddle East, North <strong>and</strong> Sub-SaharanAfricaMinistry of Livestock <strong>and</strong> Fisheries<strong>Development</strong> (MLFD) through<strong>Kenya</strong> Dairy Board (KDB) isresponsible for monitoring quality<strong>and</strong> safety, inspection, establishmentor milk receiving centers, <strong>and</strong>awareness-raising <strong>and</strong> training.Among key constraints are poorhygienic practices in milk h<strong>and</strong>ling<strong>and</strong> poor milk collection, transportmethods, lack of inspection <strong>and</strong>surveillance, outdated legislation -but also more fundamental problemsrelated to livestock management,disease control <strong>and</strong> treatment <strong>and</strong>animal feed practices (see above). ACode of Hygienic Practice forproduction, h<strong>and</strong>ling <strong>and</strong> distributionof milk <strong>and</strong> milk products exists butcannot support production <strong>and</strong>h<strong>and</strong>ling processes in unregulatedmarkets.In milk processing industry concernsare related to product <strong>and</strong> marketdevelopment , production efficiency<strong>and</strong> competitiveness, investment <strong>and</strong>export promotion (where food safetyst<strong>and</strong>ards are likely to become animportant issue). Studies show thatlarge scale farmers are morecompetitive producers. Withreduction in domestic costs(transport, packaging, etc.), <strong>Kenya</strong>could become globally competitive.Recommended actions/gapsThe following actions arerecommended to enhance domesticmilk production <strong>and</strong> prospects forexports:- continue <strong>and</strong> enhance awarenessraising,extension <strong>and</strong> training activitieson application of good hygienicpractices.- strengthen DVS capacity formonitoring, surveillance <strong>and</strong> control ofanimal diseases.- finalize <strong>and</strong> enact new Dairy Act inline with dairy development strategy<strong>and</strong> international requirements(supported by SOPs <strong>and</strong> guidelines.- enhance awareness-raising activitiesat consumer level (creating pressure onsuppliers).- control of antimicrobials throughdevelopment of national frameworkprogram (including augmentinglivestock development <strong>and</strong>management practices in both formal<strong>and</strong> informal livestock supply chains,e.g. disease management, inadequacyof animal feed, inadequate access toanimal health services in rural areas,breeding programmes, etc.).- strengthen analytical capacity formonitoring of veterinary drugs <strong>and</strong>aflatoxin level in dairy products.- further assist industries inimplementation of GMP, GHP <strong>and</strong>HACCP.Priority11122228
Products/markets SPS compliance constraints Ongoing <strong>and</strong> plannedassistanceTraditional commodities<strong>Kenya</strong>’s traditional cash crops Major constraints in coffee export are(coffee <strong>and</strong> tea) provide a livelihood mainly non-SPS factors includingfor more than 750,000 <strong>and</strong> small price decline, competition from Latingrowers <strong>and</strong> plantation employees. America <strong>and</strong> Asia, <strong>and</strong> countryCoffee exports declined over past specific conditions attributed totwo decades from about US$320m policy environment, government(1985) to US$110m (2004), while tea interventions, <strong>and</strong> inefficiency ofexports exp<strong>and</strong>ed from US$300m to cooperatives.US$400m during the same period.<strong>Kenya</strong> is the second largest teaexporter world-wide (after SriLanka).Coffee Board of <strong>Kenya</strong> <strong>and</strong> <strong>Kenya</strong>Tea <strong>Development</strong> Agency areresponsible for regulatory <strong>and</strong>marketing functions of coffee <strong>and</strong>tea, respectively.Strategies to target niche <strong>and</strong> highervalue markets, like specialty <strong>and</strong>organic products, have grown inimportance.At present, no specific SPSconstraints reported but problemsrelated to pesticides (anticipatingstricter MRLs) <strong>and</strong> fumigationpractices <strong>and</strong> mycotoxins resultingfrom h<strong>and</strong>ling <strong>and</strong> storage practicescould be serious challenges in nearfuture. Pre-emptive actions arerecommended.Various donors have providedgeneral agricultural support orsupport related to upgrading thequality of specific commoditiesin the past.Specific ongoing <strong>and</strong> plannedactivities include a projectfunded by the Bill <strong>and</strong> MelindaGates Foundation to supportsmall-scale coffee farmers inEast Africa.Recommended actions/gapsThe market for traditional commoditiesis increasingly dominated by privatest<strong>and</strong>ards with non-SPS elements e.g.fair trade, organic, private labelsincluding environmental <strong>and</strong> socialaspects.. Besides investigating furtheropportunities for organic produce <strong>and</strong>br<strong>and</strong>ing of coffee <strong>and</strong> tea, furtherpromotion of basic/good practices(h<strong>and</strong>ling, drying, etc.) <strong>and</strong> training tosmall-scale producers is recommended.Continue monitoring MRLs <strong>and</strong>myctoxins in tea <strong>and</strong> coffee in line withCodex st<strong>and</strong>ards <strong>and</strong> requirements oftarget export market countries (EU,USA, Japan, etc.).Priority219