Nairobi [Kenya], September 8: Fresh produce exporters from Kenya on Friday called for urgent resolution of the Red Sea tensions, which have increased both the cost and time required to transport cargo to the European Union.
The exporters said that the Red Sea tensions have exacerbated geopolitical and logistical challenges, negatively impacting the fresh produce sector. This has forced businesses to seek alternative routes and markets to sustain their operations.
At the Kenya-EU Economic Partnership Agreement (EPA) forum in Nairobi, Hosea Machuki, chief executive officer of the Fresh Produce Exporters Association of Kenya, said that exporters in Kenya and Tanzania are experiencing substantial losses.
"We have had to adopt radical measures to keep our businesses afloat, including exploring budget-oriented markets with challenging payment terms, which are particularly difficult for small firms to handle," Machuki said.
He added that local exporters are now looking into new markets such as India, China and Gulf Cooperation Council countries.
The Red Sea tensions have doubled transit times from Kenya to key European and Turkish markets, eroding profit margins and compromising the quality of fresh produce. "Exporters are extending their seasons and shipping produce under less-than-optimal conditions to minimize supply gaps. Alternative routes, such as the Cape route, have increased transit times from 18-20 days to 40-45 days," Machuki said.
Small-scale producers, especially those exporting avocados, have been hit hard by the crisis, facing reduced demand and revenue due to the loss of the European market, which previously accounted for 70 percent of Kenyan fruit exports.
Machuki urged for government intervention to address the Red Sea crisis and restore unfettered access to the European market for Kenyan exporters.
The Red Sea tensions pose a significant threat to global supply chains, with implications extending beyond East Africa. As Kenyan exporters face these challenges, their resilience and innovation will be crucial in shaping the future of the horticultural industry, according to Machuki.
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In response to the Houthi maritime attacks, the U.S.-led naval coalition operating in the region has stepped up strikes on Houthi military sites. However, this has only spurred the tit-for-tat exchanges, with the Houthi vowing to continue targeting vessels they claim are linked to Israel.
Source: Xinhau