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Tuskys mulling special listing at the bourse

November 26, 2018

Kakuzi MD Chris Flowers assures international buyers that local stakeholders are working in concert to manage the prevailing logistical disruptions arising from geopolitical tensions 07/02…A Kenyan business leader in the fresh produce sector has assured global buyers that the country is working hard to overcome the unique logistical and shipping challenges brought about by the Middle East Conflict. Speaking at the opening of this year’s Fruit Logistica 2025 trade show in Berlin, Germany, Kakuzi Plc Managing Director Mr Chris Flowers assured global buyers that local producers, exporters, shipping firms and the Government of Kenya agencies are working in concert to manage the prevailing logistical disruptions arising from geopolitical tensions. Mr Flowers acknowledged that the tensions have significantly impacted national competitiveness and threatens the survival of agribusiness players in Kenya due to logistical and supply chain problems caused by the effective closure of the Suez Canal and the Red Sea/Gulf of Aden’s general route to European markets. He expressed regret that from a low of 30 to 35 days, shipments to Europe now take more than 50 days to reach the crucial market. “However, I can assure you that all stakeholders, including Kenya’s Cabinet Secretary for Agriculture, are working together to ensure that our produce reaches the European market on time and in good quality,” Mr Flowers said on the sidelines of Fruit Logistica 2025, the world’s leading trade show for the fresh produce business. At the same time, Mr Flowers assured the key buyers that Kakuzi, among other leading export firms, is working closely with the Kenyan Phytosanitary authorities to curb the export of immature fruit through maturity testing services and enhanced surveillance. To alleviate the plight of Kenyan exporters, Mr Flowers acknowledged that Kakuzi's key shipping partners are working round the clock to develop faster routes to Europe. However, he reemphasized that every day counts, further reducing logistics times is critical. "We all need to put our heads together and rescue any Country bottleneck that exists," he said. Last year, the geopolitical unrest in the Middle East introduced new risks to this critical maritime route through the Suez Canal and the Red Sea/Gulf of Aden. Incidents such as attacks on shipping vessels have raised security concerns and led to significant disruptions in marine traffic flow. In response, shipping companies, wary of potential threats to their assets and crew, have opted for alternative routes despite the longer journey times and higher costs, negatively impacting fresh produce exporters’. To reach Europe, Ships ferrying fresh produce such as Avocados have been travelling from Mombasa to the port of Salala in Oman. In Oman, the containers of avocados are transferred onto another larger ship, which then travels around the Cape of Good Hope and into Europe. In Europe, the containers are trans-shipped at Algeciras Port, southern Spain, moved to Northern Europe via Rotterdam or Felixstowe, and arrive near ripe. Mr Flowers noted that starting in February 2025, one of the major shipping lines will bypass Algeciras Port and head directly to Rotterdam from Salala. This has the potential to save precious days, he noted. This year, Fruit Logistica 2025 is featuring an outstanding programme of events. Over 100 experts, invited exhibitors, including Kenya’s Agriculture and Food Authority - Horticultural Crops Directorate, and trade visitors, are meeting in Berlin to discuss the latest trends and forward-looking concepts. Fruit Logistica 2025 covers the entire value chain of the fresh fruit and vegetable trade, from the point of seed to the point of sale. With over 2,600 exhibitors from more than 90 countries in 26 exhibition halls, the trade fair is an indispensable meeting place for the fresh fruit industry. Fruit Logistica 2025 has welcomed a record-breaking number of Smart Agri exhibitors, showcasing cutting-edge innovations shaping the future of agriculture. The Smart Agri exhibition area features 36 pioneering exhibitors from 18 countries, marking a significant increase over last year. These exhibitors will present Artificial Intelligence (AI) technology for estimating fruit yields, farm management and quality control software, sustainable and precise irrigation solutions, data-driven precision pollination, drones revolutionising agriculture, and much more.

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