Faced with the prospect of the potential stagnation of the growth of its horticultural industry, Kenya has actively started to look for new markets for its cut flowers. Earnings dwindled slightly in 2012 and key market Europe remains unreliable when it comes to demand.
The country’s horticulture production capacity and corresponding foreign exchange earnings may well be approaching a level where further growth is not a given. Scouting for new markets has therefore become imperative, Kenya Flower Council CEO Ms. Jane Ngige reasons.
Although output in 2011 remained relatively good - once the decline in demand as a result of the European financial crisis is taken into account - earnings as well as volume did show a small decrease. Cut flower export revenue for the entire year amounted to close to 65 billion Shillings (almost 600 million euros).
“We have sort of reached a plateau and we project the sector to stabilise at this level, but there’s aggressive pursuit of new markets to push the sector higher and also to increase our competitiveness,” Ngige states.
Volume is projected to rise slightly this year as good rainfall is expected. The situation in Europe remains risky, however, and Kenya also faces increasingly stiff competition from other flower producing countries there.
Eastern Europe, Russia in particular, and Dubai are seriously being considered as new markets for the Kenyan flowers. Meanwhile, African nations (Uganda, Tanzania, Sudan, Ethiopia, Somalia, South Africa, and Egypt) also account for 30.5 billion Shillings in Kenyan horticulture exports.
Source: The Nation Kenya