Constraints in the Kenyan fruit juice processing industry : final report

For fruit processors, the main impediments to expanded business activity and increased investments were (1) the rapid escalation in the cost of packaging materials; (2) the weak economic climate characterized by stagnant growth, falling real incomes, and sharp currency devaluations; and (3) problems with raw material availability. For fruit growers, the main obstacles to expansion and increased productivity were (1) the sharp rise in chemical input prices; (2) the lack of access to formal credit; and (3) poor horticultural extension services. Technically, the chief problems encountered were poor grading and sorting techniques, which result in inconsistent product quality. Principal recommendations call for a program of technical assistance aimed at improving fruit procurement, processing plant efficiency, and quality control; the undertaking of a feasibility study on contract farming as a means to solve the availability of raw materials problem; the establishment of an effective market information system, preferably operated by a private entity; and the strengthening of the Agribusiness Association of Kenya so that it can become an effective intermediary between the Government of Kenya, the donor community, and affiliated industries. (Author abstract)