Commodity News
Analysis By Leo Odera Omolo

A trade row between Kenya and South Africa is reportedly simmering following the failure to resolve an administrative barrier that has seen Kenyan exports to the regional powerhouse shrink drastically over the last week.

The Business Daily, a Kenyan businesses journal has reported last week.

At issue is what Kenyan exporters consider a non administrative trade barrier that has virtually blocked avocados from accessing the Kshs 150 million a year market in the Republic of South Africa. That country has instituted the measure saying the product posed a fruit fly threat to the country.

Since the ban was imposed in April last year Kenya has lost 80 percent of its fresh avocado exports going down the to South.

The South Africa’s imports inspection body raised the phytosanitary issues which Kenya exporters see as a form of protectionism.

Although the partial ban was attributed to a fruit fly threat, the CEO of the Fresh Products Exporters Association of Kenya (FPEAK) Dr.Stephen Mbithi said fruit flies affect avocados from all African countries and did not warrant such punitive action.

Avocado export are big business fro Kenya accounting for Kshs 2.2 billion in direct export annually “pwerte” is the leading export variety followed by “Hass”

South Africa alone imports fresh avocados worth Kshs 150 million annually which  are mainly used in the foods and cosmetics industry 80 per cent of exports to South Africa represent Kshs 120 million in earnings which have been lost due to trade barriers.

The ban, according to Business daily, a publication of the Nation Group of Newspapers is now raising eyebrows as some players in the trade see it as an illegal way of protecting the South Africa avocado industry.

Exports say that the South Africa government has been known to resort to non-tariff trade barriers as a way of protecting the industries from external competition

“They are breaking into agreement because they are trying to protect their industry by banning imports,” said Dr.M.Mbithi.

However, the South African government may be legally using a provision in international l trade  laws that allows countries to institute trade barriers in certain circumstances” international laws allow countries to protect themselves from hazardous imports that threaten their crops and this is what the south Africans government has used,” said Mr. Edward Maina of the Horticultural crop Development Authority marketing Manager. South Africa is also a major producer of avocado with most of its exports going to Europe.

However the avocado industry in South Africa is said to be seasonal due to the pressure of very cold winters, leading to very low production. The production season for the country avocados is only yielding between March and October.

Kenya on the other hand enjoys the equatorial climate and avocado trees in the country produce all year round accounting fro a big percentage of horticultural exports.

Main production areas around Mt.Kenya and the North Rift.  The country exporters are now working with the Agricultural and Trade Ministries to resolve the issue.

Kenya phytosanitary institution ,the Kenya plant Health Inspectorate Services (KEPHIS) has been working to have avocados exports to South Africa have been affected since some exporters have started adding value for their avocado exports by extracting oils from them and exporting it.

“we have been affected by the ban since we export extracted avocado oil only” a Mr.J.Patel from Sunny processors Ltd.

Value addition fro avocados have been catching on the export industry for the last five years since it started.

After the EU the USA is the second most important importing market for avocados with a local consumption is 700g/capita and rising.

ends

Ends leooderaomolo@yahoo.com

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Date:  Mon, 22 Sep 2008 01:22:48 -0700 (PDT)
From:  Leo Odera Omolo
Subject:  TRADE WAR LOOMS LARGE BETWEEN NAIROBI AND PRETORIA AS SOUTH AFRICA BANS KENYAN AVOCADOS EXPORTS