French beans to Tesco's

One of the great Kenyan success stories in recent years has been the growth of the horticulture industry, serving the European market with air-freighted fresh produce ranging from flowers to fruit and vegetables. The industry has its share of detractors - particularly from the environmental and health & safety lobbies - but its economic impact has been huge - to the extent that in the space of 30 years it has gone from zero to be Kenya's largest export industry.

Last week, I was lucky enough to attend the AGRA/ILRI-sponsored conference on the subject of making agricultural markets in Africa work more effectively and efficiently. Among many interesting papers presented was one by Miet Maertens of Leuven University on the growth in high value export markets in sub-Saharan Africa. This paper stood out because it contained hard evidence of the economic impact of the horticulture industry at a household level (something which is all too often ignored in favour of the heart-warming but meaningless anecdotes which pervade the development world).

In brief, the paper concluded that high value trade in fresh produce has a significant and substantial quantifiable impact on rural development and poverty reduction. These effects occur both at the producer level (where farmers grow for exporters) and through the creation of rural labour markets - where there is also a substantial gender bias in favour of women.

My view is that there are numerous other benefits resulting from the fresh produce industry which may be more difficult to quantify than household incomes, but which are no less important. For example, without the massive injections of cash into rural economies brought through employment and the sale of produce, a whole network of small trading and service businesses would be at risk. Access to schooling and healthcare would be restricted. Because export standards are high, significant quantities of produce do not make the grade. Export reject produce is sold in the local market or consumed at home (with attendant nutritional benefits). Farmers have learned new skills and developed new farming techniques and greater exposure to crop protection products. Employees have access to training and advancement opportunities - and the precious practical experience of learning from systematic and organised business administration, agricultural technology, food standard compliance and so on.

The standards required by importers have also thrown up business opportunities. One of AAC's first investments was in a business called Africert. Africert is accredited by a number of international standard-setters to audit producers and issue a range of certificates confirming adherence to the required quality standards. This is an essential link in the export produce value chain, ranging from tea and coffee to fresh vegetables and flowers - since without it high value markets would be closed.

Like most agribusiness, it's easy to throw stones and criticise the fresh produce industry. In comparison to the ultimate $2 dollar selling price of a 500g pack of French Beans in Tesco's, the grower's share of a few cents is tiny - but it's a share, nonetheless, that wouldn't otherwise be there, and it's a share which offers an better income-earning opportunity than alternative crops (otherwise the grower wouldn't do it). Employees don't earn much, but they create a market price for labour and generate tax revenue for local and national Government.

So don't knock it. Support it.