Malachy Mitchell, Managing Director, Farrelly Mitchell, gives an overview of East Africa food & agricultural trade and how East Africa can supply the affluent and high growth GCC consumer food market.
Key Takeaways
Import dependency of East Africa: While the population of the region is growing at the rate of 2% CAGR, food and agricultural production only grew 0.9% during the same period. With this ratio, there is a high chance of increase in import dependency in future.
Agriculture production: Agriculture production is quite concentrated among a small number of countries. Focused efforts in developing infrastructure, technology, and policies in agriculture are important.
Imports: Imports of wheat and rice account majority of cereal imports in the region. However, local dynamics are a bit different for every country.
Exports potential: East Africa has a unique and differentiating product mix to compete in the global market. For instance, Tanzania is one of the largest producers of Cashew and second largest exporter of pulses like Pigeon Peas and Green Gram. Whereas Kenya is the largest producer of Avocado in Africa.
Opportunities for GCC trade relations: Economic reforms in GCC are opening doors for in-country partnerships and joint ventures.
Companies should capitalise on investments and ensure they have necessary certifications.
Food and beverage consulting
East Africa agriculture holds great potential for supplying high-growth international markets such as the GCC, however many developmental challenges persist. At Farrelly Mitchell, our global network of agrifood experts possess the industry knowledge and expertise necessary to support agri-development projects and foster international agri-trade relations.
With a deep understanding of trade relations, policy and regulations, and global supply chains, our experts are uniquely placed to facilitate international partnerships. Furthermore, our development and impact team are highly experienced in supporting developing agricultural regions through capacity building and training, value creation & implementation, rural development, and more. Contact us today to learn more.
