How To Become An Exporter Of Horticultural Produce

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How To Become An Exporter Of Horticultural Produce
 
A:Legal Documentation and Licensing Requirements
To export horticultural products the following legal/licenses are mandatory.
1.A Certificate of Business Incorporation/Registration from the Registrar of Companies
2.Obtain an Export Licence from Agriculture Food Authority (AFA)-Horticultural Crops
Directorate (HCD) (previously Horticultural Crops Development Authority (HCDA)) on the fulfilment
of the following conditions;
 •Submit copies of Certificate of Incorporation/Registration
•Photocopy of your ID cards of all the Directors (passport or work permit if they are foreigners)
•Packing facilities inspection report
•Register the contract (between the producer & exporter) with the HCD indicating produce price, quantity & quality requirements
•Company stamp and authorized signatory of the applicant
•A Bank Account
•Declaration of source of produce
 
-If you are a grower, indicate the location of the land and the total acreage under production
-If not, provide written contracts with farmers for supply of produce of a certain quality and standard, unless you are producing the export crop yourself.
•You will also need to have or demonstrate access to:-
-Packing facilities. (shed, grading hall, cold store, etc )
-An adequate knowledge of quality standards for horticultural produce on the market (Good Agricultural Practices – GAP; Traceability; Maximum Residue Level – MRLs; Post Harvest Handling procedures, KEBS etc.)
-Documentary evidence from your overseas client, that you are ready to start an export business e.g. an order from the client, or agreement to start business etc.
•Export Licence fees payable to the Horticultural Crops Directorate:
-Export License fees 
-New/Renewal forms are obtained in the AFA Website HCD Section.
 
B: Export Documentation
 Every consignment of horticultural products requires the following documents that are mandatory: -
1. Phytosanitary Certificate (from Kenya Plant Health Inspectorate Services) – issued at the ports of exit after inspection.
2. Certificate of Origin (depending on the destination market);
  • COMESA Certificate of Origin for products destined to COMESA countries
  • EAC Certificate of Origin for products destined to EAC Countries
  • EUR – 1 Form for products destined to European Union
  • GSP form for products destined to USA, Japan, Australia, and Canada etc.
  • Ordinary Certificate of Origin for products destined to Middle East, India, Central Europe, etc.
  • AGOA certificate of origin for products destined to the US.
 
3. Commercial Invoice
4. Bill of lading (sea freight), Airway bill (for air freight)
5. Packing List
 
C: Business Infrastructure
1. Acquire a trading premise (office, pack house, cold store)
2. Establish communication infrastructure
  • Address
  • Telephone
  • Email address
  • Skype
3. Develop Business image builders/marketing tools:
  • Letter Head
  • Business Cards
  • Company Profile/Brochure
  • Price list
  • Packaging and Branding
  • Website.
4. Post harvest handling Facilities
  •  Collection sheds at the farms
  • Insulated transporting vehicles
  • Packing house/hall
  • Cold store
B: Export Documentation
Every consignment of horticultural products requires the following documents that are mandatory: -
1. Phytosanitary Certificate (from Kenya Plant Health Inspectorate Services) – issued at the ports of exit after inspection.
2. Certificate of Origin (depending on the destination market);
  •  COMESA Certificate of Origin for products destined to COMESA countries
  • EAC Certificate of Origin for products destined to EAC Countries
  • EUR – 1 Form for products destined to European Union
  • GSP form for products destined to USA, Japan, Australia, and Canada etc.
  • Ordinary Certificate of Origin for products destined to Middle East, India, Central Europe, etc.
  • AGOA certificate of origin for products destined to the US.
3. Commercial Invoice
4. Bill of lading (sea freight), Airway bill (for air freight)
5. Packing List
C: Business Infrastructure
 
1. Acquire a trading premise (office, pack house, cold store)
2. Establish communication infrastructure
  • Address
  • Telephone
  •  Email address
  • Skype
3. Develop Business image builders/marketing tools:
  •  Letter Head
  • Business Cards
  • Company Profile/Brochure
  • Price list
  • Packaging and Branding
  • Website.
4. Post harvest handling Facilities
  • Collection sheds at the farms
  • Insulated transporting vehicles
  • Packing house/hall
  • Cold store
NB: HCD can avail guidelines on how to construct a hygienic collection shed and pack house.
 
D: Marketing of Horticultural Produce
Horticultural sector comprises of four sub-sectors namely;
• Cut flowers
• Fruits
• Vegetables
• Processed horticultural products
 
Kenya’s most important markets for horticultural produce include Europe, Middle East, Far East and Asia and parts of Africa. Kenya’s horticultural produce is exported mainly in fresh but in value added packaging as well as in processed forms.
 
1. Export Marketing Channels for Horticultural Produce
 
Direct exporting
This involves the producer exporting directly to the foreign country. The producer can export directly to:
i. Consumer (very rare in case of horticultural exports)
ii. Wholesalers/retailers in the export market
iii. Distributors in the foreign country
iv. Auctions especially for flowers
v. Through joint ventures with partners in the importing countries
vi. Via own branches set up in the export market. This is very expensive and involves setting up a lot of infrastructure.
vii. Through licensing arrangements with a company in the export market
 
Indirect Exporting
Here the producer/farmer does not have direct access to the foreign market. The following options can be pursued.
i. Option 1: The exporter sells to an exporting company/agent (middleman) locally. The exporting company/agent consolidates the produce, inspects on the quality, does the packaging and exports through the channels indicated above.
This channel could be appropriate to small-scale producers who do not have enough capacity to produce adequate quantities. This method can also be beneficial to a beginner in export business where they will acquire experience especially on quality requirements, production planning, packaging, export market requirements and capacity build up to increase production. Here the risks are transferred to the exporting company.
 
 
DISCLAIMER:
KEPROBA has compiled this Information with the aim of providing support and guidance for promotion of Kenya’s Export of goods and services. The information contained in this document is restricted, legally privileged, and may be inaccurate due to policy changes from time to time. KEPROBA will not accept responsibility or liability for the content, or for the consequences of any actions taken on the basis of the information provided therein.
 
 
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P.O. BOX 40247 00100 NAIROBI
TEL: +254 20 2228534-8, FAX: +254 20 2218013, 2228539
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About KEPROBA

The Kenya Export Promotion and Branding Agency (KEPROBA) is a State Corporation established under the State Corporations Act Cap 446 through Legal Notice No.110 of August 9th, 2019 after a merger between Export Promotion Council and Brand Kenya Board.The Agency’s core mandate is to implement export promotion and nation branding initiatives and policies to promote Kenya’s export of goods and services
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