Farmers Stare At Losses As Pilots Strike Enters Day 4
KEY POINTS
The impact of the KQ pilots’ strike on the local horticulture industry is huge as the majority of producers and traders rely on the national carrier to ship their fresh produce to various export destinations globally, especially in the European Union (EU).
KEY TAKEAWAYS
On the bare minimum, we are losing at least 45 million shillings on a day if you work with an average of $2.5 (304 shillings) per kilogram of all the commodities that we are not exporting.
Fresh produce farmers are now staring at losses due to the ongoing strike by the Kenya Airways (KQ) pilots which has seen tonnes of perishable produce stuck at the Jomo Kenyatta International Airport (JKIA).
The local horticulture producers say they have lost fresh produce valued at over 500 million shillings which were supposed to be flown by the carrier to various destinations. The strike has affected the entire horticulture value chain as farms are unable to harvest their products because they are uncertain that they will be exported. Lack of harvest means that some products such as flowers and vegetables will outgrow and hence be unfit for sell out.
“On the bare minimum, we are losing at least 45 million shillings on a day if you work with an average of $2.5 (304 shillings) per kilogram of all the commodities that we are not exporting,” said Ojepat Okisegere, chief executive officer of Fresh Produce Consortium of Kenya (FPCK).
Okisegere said that Buyers overseas have also cut orders from Kenya because they are unsure that what they have ordered will be delivered, impacting their businesses.
KQ CEO Allan Kilavuka said the airline was unable to airlift any fresh produce since the strike started where it exports an average of 150 tonnes daily. This was confirmed by the Agriculture cabinet secretary Mithika Linturi on Monday noting that over 100 metric tonnes of fresh produce are still stuck in the local warehouse. This means that if the situation persists Kenya will be losing its buyers as they look for other alternatives.
“The impact of the KQ pilots’ strike on the local horticulture industry is huge as the majority of producers and traders rely on the national carrier to ship their fresh produce to various export destinations globally, especially in the European Union (EU),” Linturi said during a meeting organized by French-based inspection and accreditation firm – Bureau Veritas and Fresh Produce Consortium of Kenya (FPCK).
According to the CS, 75 percent of the incurred losses comprised cut flowers while raw meat accounted for 25 percent loss. The European Union accounts for the largest portion of Kenyan horticultural exports, taking in 45 percent of the exports majorly comprising cut flowers, French beans, snow peas, and Asian vegetables. The leading export destinations are the Netherlands, United Kingdom, Germany, Austria, Italy, France, Belgium, the Middle East, and the Far East.
Linturi termed the strike as a challenge to the government to roll out new strategies in a bid to ensure exports are not interrupted in the future by similar occasions.
Related Content: KQ Pilots To Down Tools Saturday Morning
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