Nairobi — The Government plans to partner with private sector to establish a fertiliser manufacturing industry in the country by 2012.

Agriculture assistant minister Mbiuki Kareke said the plant will help cut down cost of fertiliser that has adversely affected crop production in the country.

Speaking when he received a delegation of Japanese Government officials led by Mr Takahashi Yoshiyuki at his Kilimo House office in Nairobi on Friday, Mr Kareke was happy that fertiliser prices were going down in the international market.

Mr Kareke announced that a foreign firm has been identified for the supply of fertiliser worth Sh11.5 billion for planting next year.

"The process has been finalised and the company identified. The contract will be signed next week," the assistant minister said.

The Sh11.5 billion for the fertiliser for the long rains, Mr Kareke said, will be revolving fund and that the government will collaborate with Kenya Tea Development Authority, Kenya Seed Company and other stakeholders in the initiative.

"The government fertiliser will be the most competitive in the market," he said, adding that the government was currently distributing fertilizer in Eastern, Central and South Rift for farmers to purchase at low prices for the short rains.A bag of CAN fertiliser for instance costs Sh1700 in National Cereals and Produce Board depots compared to Sh2900 offered by private dealers

As a result, Mr Kareke said, farmers were camping at the depots to purchase fertiliser.

A bag of DAP is trading at Sh4000 in NCPB depots in areas which rely on short rains, down from Sh6200 offered by other traders.

On Friday Mr Kareke and Agriculture secretary Wilfred Songa said the government will come up with a policy soon to guide the country in production of bio fuels.

On floriculture, a high powered delegation led by Mr Songa is to visit Japan from next week to explore how Kenya could explore that market fully.

The delegation, sponsored by Japanese International Cooperation (JICA) will study and familiarise with Japan's cut flower market in a bid of promoting trade between the two countries.

Although there is a huge potential of Kenyan flower in Japan, Kenya has mainly been relying on the European market.

In 2006, Mr Yoshiyuki said, Kenya exported 11 million stems of roses to Japan and that the volume is expected to increase after Mr Songa's group visit.

Floriculture, mainly cut flowers, comprise eight percent of total exports.

Japanese market has been difficult for many flower exports to penetrate due to tough quality standards and pesticides conditions.

Mr Kareke said Kenya needed joint venture with Japan to meet the standards and lay an action plan to meet the Japanese market.

Mr Yoshiyuki announced that JICA which used to only deal with technical assistance was now also dealing with financial issues to boost developing countries.