Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere

Jaffee, S. and Masakure, O. (2005) Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere. Food Policy, 30 (3). pp. 316-333. ISSN 0306-9192 doi: 10.1016/j.foodpol.2005.05.009

Abstract/Summary

The paper examines how European retailers are using private standards for food safety and,quality as risk management and competitive tools and the strategic responses of leading Kenyan and other developing country supplier/exporters to such standards. Despite measures to harmonize a 'single market', the European fresh produce market is very diverse in terms of consumer preferences, structural dynamics and attention to and enforcement of food safety and other standards. Leading Kenyan fresh produce suppliers have re-positioned themselves at the high end, including 'high care', segments of the market - precisely those that are most demanding in terms of quality assurance and food safety systems. An array of factors have influenced this strategic positioning, including relatively high international freight costs, the emergence of more effective competition in mainstream product lines, relatively low labor costs for produce preparation, and strong market relationships with selected retail chains. To succeed in this demanding market segment, the industry has had to invest substantially in improved production and procurement systems, upgraded pack house facilities, and quality assurance/food safety management systems. (C) 2005 Elsevier Ltd. All rights reserved.