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“We
are seeing a reduction in movement, delays in movement of
produce, and longer routes, while pricing is extremely high.
Last week, we were at $5.80 per kilo, which is the highest we’ve
had in the last 10 years,” KFC Chief Executive Officer Clement
Tulezi told The Associated Press.
Kenya's horticulture sector, one of its most important
industries, is worth over $800 million annually, according to
the Central Bank of Kenya.
At Isinya Flower Farms, located 56 kilometers (34miles) south of
Nairobi, Marketing Manager Anantha Kumar says exports have
dropped by more than half.
“Previously, we used to export 450,000 stems per day, and
currently we are doing about 150,000 to 200,000 stems a day. So
we are discarding almost 50%,” Kumar told The Associated Press.
Normally, direct flower exports to the Middle East account for
about 30% of business at Isinya Flower Farms and up to 15%
nationally, with Europe being the largest market, accounting for
up to 70%.
However, while the Middle East isn’t Kenya’s main export market
for flowers, cargo freight to Europe been disrupted by the
conflict in the Middle East, resulting in reduced exports as
well as higher costs.
“With the current freight rates, customers are not able to buy.
And while the freight rates are high, it is also difficult to
get the freight. Only a few freights are operating, as mainly
the Middle Eastern carriers have stopped, and the European
carriers are charging about $5 per kilo, which is two times the
normal rate,” Kumar said.
Growers like Isinya Flower Farms now warn that, should the
conflict drag on, the sector will continue to deteriorate, with
scenarios similar to the COVID-19 period looming. Experts warn
this will likely result in job losses in a sector that employs
up to half a million Kenyans directly.
The Kenya Flower Council now says it is lobbying the Kenyan
government to introduce direct cargo flights to Europe in a bid
to maintain the European market and cushion growers.
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