Smallholder farmers have been encouraged to collaborate and form cooperatives to manage the increases associated with undertaking a Fairtrade certification and meeting new market standards set by the European Union (EU).
The Executive Director of Fairtrade Africa, Isaac Tongola, emphasized that the EU–Kenya Economic Partnership Agreement (EPA), which took effect in July 2024, is a risk of the export gap increasing between the large and the small if no additional investments are made to support the smallholders.
The trade agreement allowed Kenyan exports to access Europe’s high-value markets without paying any duties. However, the new opportunities are always out of reach for thousands of small-scale farmers due to the regulations that continue to roll in.
In accordance with the EU Green Deal, exporters must show that their farms do not contribute to deforestation, fully trace the origin of the products, and use fewer pesticides.
The compliance with the stringent standards has resulted in increased operational costs, putting small farmers at a disadvantage compared to large agribusiness exporters who have more resources to meet these standards. “If there is not more money for farmer cooperatives, rural cold storage facilities, and compliance training, small-scale producers might be left behind,” Tongola said.
The agricultural community is, furthermore, urging regional blocs to negotiate sustainable tariffs that could alleviate producers from the costs. They refer to phytosanitary certification and labeling as the main causes of high production costs, which in turn negatively affect small and medium-sized enterprises.
One of the experts said that better collaboration among producers could significantly reduce the cost of certification as they could pool resources, share storage and transport facilities, as well as jointly invest in training to meet EU requirements.
While the EPA is expected to have a positive impact on Kenya’s exports to Europe, the stakeholders are of the opinion that inclusive and urgent strategies are required to ensure that the benefits are not concentrated only on smallholder farmers who constitute the largest proportion of Kenyan agricultura
