Piracy threatens Kenyan fresh produce exports
The cost of exporting Kenyan fresh produce has almost doubled due to the activities of pirates in the Gulf of Aden.
Fpeak, the Fresh Produce Exporters Association of Kenya, has reported that the cost of transporting avocado, mangoes, pineapples and vegetables has increased by $2,500 per container due to the increased cost of shipping insurance.
Members have lost $12 million in additional fees since October.
Somali pirates in the Gulf have been active for some months, despite an agreement of the 11 member states that form the Inter-Governmental Authority on Development (IGAD) to fight against piracy. Insufficient funds have been supplied to suppress the problem, and as a result the shipping route is becoming increasingly impassable. It is possible that the longer and more expensive West African route will have to be used to avoid the pirates.
There are fears that the increased fees are stretching margins to the limit and may result in European sales becoming unviable, especially with imports from South Africa and Chile becoming increasingly competitive.
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