Lifting produce from Nairobi to other markets is still a major challenge due to modified freight capacity . During the holiday season in July and August , as the demand is usually low during this clip of the year , growers had less problems shipping the demand bloom , but as the holiday season is almost over , intriguing times are ahead . In September , requirement will increase again and freight content available is still too dispirited .
Kenya Flower Council ( KFC ) is doing its utmost best supporting the industry to enable them embark their peak . They are talking with the airlines as well as the government to lour the cost for the agriculturist in dissimilar area . " The requirement is there , but getting the product to market , and for a reasonable price , is still a challenge " , read Clement Tulezi , CEO at KFC .
Clement Tulezi at the IFTEX 2019 in Nairobi , Kenya .
Direct requirement doing wellThe volumes being export are not back at the same level as pre - COVID-19 , but are definitely better than in March and April , explicate Tulezi . " From Mid - March till the end of April , we were down 80 pct . We were only export 20 pct of what we expected to export . Fortunately , after European Mother ’s Day , demand go away up and now , requirement is still there and growers are getting order again . And particularly the growers who issue the direct market . The auction is still less as , in terms of mass . " Currently , about 50 percent of the Kenyan Flowers are being exported to the direct market .
Air freight a major challengeEven though the demand is there , get the bloom to their final destination is still a challenge as freight capacity is still to low . " Over the last months , as the demand was down due to the holiday time of year , we were able to superintend it , but in September , the capacity will not be enough . On average , we need 3,800 tons per calendar week , but now , even with the onset of rider flights , we are still less than 3,000 tons per week . "
And besides the low capacity , the cost are also still much high than pre COVID-19 . " They are almost treble than before and it eats both in the profit and output costs . " It is specially intriguing as their chief competitors , growers in Ethiopia , are not experience to conduct with this issue as they have enough content due to their interior airline business .
September will be the big testLike everyone else , Tulezi hopes that the COVID-19 infections will go down . Then , there will be less requirement for aesculapian supply and there will be more room again for flowers , he explains . Due to the need for aesculapian supply and as countries are unforced to pay more for these freight , a mickle of bearer shifted from shipping bloom to aesculapian product . " We drop from about 15 carriers to 4 carriers in April . Now , we are at about 7 to 9 carriers . " So , in September , when the demand is expected to increase again . It will be the liberal test to embark the demanded flowers . "
In tactile sensation with the airlinesKFC is having a sight of discussion with bearer to worry them to come back to Nairobi . " Firstly , we give them information on how much mass we have in Nairobi and show them that there is demand for flower . Secondly , we ’ve been talking with the regime to come with a stimulant package for airlines . So , instead of charging double they can buck the growers less or similar price as pre - COVID . In total , the governance has a stimulus software program useable of 100 million euro to support the gardening industry in Kenya and we hope that a part will be available to the airlines . Finally , we show the airlines that we can consolidate produce in Nairobi . This will foreshorten extra toll for the airlines as they do not have to pick up pocket-size shipments across the area . So , at the consequence , we are talking with partners to actualise the plans of consolidating in Nairobi . "
What is being done for the farmsAlso for the farm , KFC is doing their uttermost best . " We are investing our efforts in commit money in the pouch of our growers and exporters . We as KFC have had discussion with the government regarding give back the Value add together Tax repayment and it wreak . Two month ago , the governing liberate almost 70 % of which they were owning the cultivator for many years . Now , the growers have some money in their pockets to keep on go . And in the coming calendar month , the government prognosticate to pay off all our member 100 % per centum . " On top of that , KFC is also talking with the government about the current taxes . " We are stress to convince them to give our cultivator rebate or delayed payment of some taxes so that the cultivator can meet their price . "
KFC has also made some expectant gestures to the farm doer . A amount of 6,000 actor across 28 farms received dispatch food for thought packages as a rest measuring rod due to dislocation of income as a result of COVID-19 pandemic . " In Kenya , we have very skilled workers and it is very significant to keep them on the farm . We were glad to see the irrefutable reactions of the actor with this small motion . Resources were limited , but we would love to do it again with another partnership . We are hear to find a way to keep them on the farms ; we are doing whatever we can . "
How are the farms doing?So far , the farms are still in business . Currently , most workers are again back on the farm and Tulezi explain that they are very proud of with how the authorities hold up them along the style . " When there were restrictions in term of movement , the regime allowed our produce and employees to move . Also cargo flight were still allowed to arrive in . This was a very good move of the governance . If they restricted it , it would all have been much more difficult for the raiser . "
first moment : same hectares , but less growersSo far so good , but Tulezi have a bun in the oven that things will change and that these changes will become visible in 2021 . " We bear to see more uniting among farms and the smaller farm being taken over by the braggy farms . All in all , we do not expect the cultivation hectare to shrink , only the figure of companies . The farms that are not embracing efficiency will have to close . Fortunately , we have not seen it yet , but we wait this to see next year . "
Recovery of the industryWhen spill about the retrieval of the manufacture , Tulezi carry this to happen Mid 2021 . However , governmental support is of import . " It is an diligence that employs over 200,000 people and has an one-year turnover of 1 billion USD . The political science needs to look at us as a particular class . Now , with the current tax , it is difficult to expand as an industry . So , if they want us to grow , they need to give us some leverage on that and that is what we as KFC are lobbying on behalf of our members and the industry . "
" All in all , the Kenyan bloom manufacture will be in the future . It might not be that glossy in the coming months , but it will be in the futurity " , he concludes .
For more information : Kenya Flower CouncilSuite 12 , 4th Floor , The Greenhouse Building , Adams Arcade , along Ngong RoadMobile : ( 254 ) ( 0)733 639 523[email protected]kenyaflowercouncil.org
