Analysis Of Kenya's Agri-Business Market, 2024: Tea, Coffee, And Floriculture Drive Exports Despite Climate And Economic Challenges

(MENAFN- GlobeNewsWire - Nasdaq) Smallholder Farmers Lead Kenya's Agriculture Sector as industry Faces Sustainability Hurdles

Dublin, Jan. 14, 2025 (GLOBE NEWSWIRE) -- The "The Agri-business Sector in Kenya 2024" report has been added to ResearchAndMarkets.com's offering.

This report on the agribusiness sector in Kenya includes information on livestock, crop and horticulture production including dairy, tea and coffee farming, and processing. It includes information on agricultures contribution to the economy, trends and issues, notable players and corporate actions, trade, regulations and influencing factors such as economic and environmental conditions. There are profiles of 32 companies such as tea companies Williamson Tea and Kenya Tea Development Agency Holdings, sugar companies such as Nzoia Sugar and Chemelil Sugar, milling and distribution businesses such as Unga Group, and international subsidiaries such as Cargill Kenya.

Agriculture input prices are expected to remain high. The rise in input costs has seen producers reduce the volume of purchases, and this trend is expected to continue. The area harvested is expected to remain flat due to high opportunity costs associated with converting farmland from other crops to maize. The floriculture market is expected to grow at a CAGR of over 5% over the next few years. Tea export growth will continue as new tea export markets are sourced. Major risks such climate shocks, unreliable power supply, high input prices and currency depreciation will continue to undermine opportunities to increase agricultural output in Kenya.

Introduction
Kenya's agriculture sector plays a key role in the country's economy, contributing over 20% to GDP, employing more than 40% of the population and accounting for 65% of export earnings. The major export-earning crops are tea, fresh cut flowers and coffee. Nearly half the country's land area is agricultural land. Smallholder farmers account for most of Kenya's agriculture output. Major activities include crop production, livestock rearing and agro-processing. Challenges include erratic and unpredictable rainfall, unreliable power supply, high input and transportation costs, and limited storage facilities.
Challenges
Pests and crop diseases. Adoption of sustainable land management practices is low and land degradation increasing. Average farm size is falling and land distribution is becoming more concentrated. Capital investment in agro-processing is restrained by inadequate quantity and quality of agricultural products. Climate change, changes in temperature and rainfall. Few and low capacity of skilled workers. Frequent droughts. High cost of inputs High costs of animal feeds. Limited use of technology. Low investments and funds allocated to agricultural activities. Most crops are rain fed, and production is affected during droughts. Poor access to credit. Poor infrastructure in rural areas which means farmers are forced to sell their crops at low prices. Poor quality of animal feeds. Unreliable power supply.
Opportunities
Value addition in the entire agricultural value chain. Agro-processing in most agriculture sectors. Chemical (pesticides, fertilisers, livestock drugs and medicines) supply and manufacturing. Import and trading of grains. Manufacture of livestock feeds. Provision of technology and IoT for farming and processing systems. Supply and construction of renewable energy and its components. Supply and manufacture of agricultural equipment. Transport and logistics. Warehouse solutions and cold chain facilities.
Trends
Improved production due to favourable weather conditions and government fertiliser subsidy programme. Increased demand for animal feeds, mainly driven by small scale poultry producers. Increased tea leaf deliveries by smallholder farmers. Innovation and new products. The use of new technology and equipment among large operators.
Key Topics Covered

1. INTRODUCTION
2. COUNTRY INFORMATION
3. DESCRIPTION OF THE INDUSTRY
3.1. Industry Value Chain
3.2. Geographic Position
3.3. Size of the Industry
4. LOCAL
4.1. State of the Industry
4.2. Key Trends
4.3. Key Issues
4.4. Notable Players
4.5. Trade
4.6. Corporate Actions
4.7. Regulations
4.8. Enterprise Development and Social Development
5. AFRICA
6. INTERNATIONAL
7. INFLUENCING FACTORS
7.1. Unforeseen Events
7.2. Economic Environment
7.3. Labour
7.4. Environmental Issues
7.5. Technology, R&D, Innovation
7.6. Government Support
7.7. Climate Change
7.8. Input Costs
7.9. Unreliable Power
7.10. Corruption
8. COMPETITIVE ENVIRONMENT
8.1. Competition
8.2. Barriers to Entry
9. INDUSTRY SUMMARY
10. OUTLOOK
11. INDUSTRY ASSOCIATIONS
12. REFERENCES
12.1. Publications
12.2. Websites
APPENDIX

• Industry Legislation
• Summary of Notable Players

COMPANY PROFILES

• AAA Growers Ltd.
• Agri-Seed Co Ltd.
• Bidco Africa Ltd.
• British American Tobacco Kenya PLC
• Brookside Dairy Ltd.
• Chatthe Group
• Chemelil Sugar Company Ltd.
• Eaagads Ltd.
• East African Seed Company Ltd.
• Everest Enterprises Ltd.
• Grain Industries Ltd.
• Greenfoods Agri Processing Industries Ltd.
• Kakuzi PLC
• Kapa Oil Refineries Ltd.
• Kapchorua Tea Kenya PLC
• Kenchic Ltd.
• Kenya Meat Commission
• Kenya Meat Processors Ltd.
• Kenya Orchards PLC
• Kenya Seed Company Ltd.
• Kitui Flour Mills Ltd.
• Limuru Tea PLC
• Mumias Sugar Company Ltd.
• New Kenya Co-Operative Creameries Ltd.
• Nzoia Sugar Company Ltd.
• Rea Vipingo Plantations Ltd.
• Sasini PLC
• South Nyanza Sugar Company Ltd.
• Soy Afric Ltd.
• Suguna Foods Kenya Ltd.
• Unga Group PLC
• Williamson Tea Kenya PLC

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