Due to a lack of airwave freight capacitance , around 65 percent of what is usually being exported during this prison term of yr is leave Nairobi . Even though the farms are not operating at full capacity , all are open and therefore maintain their workforce . They can hang in there for another couple of hebdomad , but if the site does not improve , agriculturalist will lose exportation market place , can not pay their bank note , in twist leave many multitude jobless . This is explained by Clement Tulezi , chief executive officer of the Kenya Flower Council . This association is doing its best to support the Kenyan flower industry by reach out to the government and all links in the supplying chain .
In this clause , Tulezi reflects on the last month , the current situation and looks forward at what is need to make the Kenyan flower industry flower again .
Clement Tulezi at the IFTEX 2019 in Nairobi , Kenya . This calendar week , theIFTEX 2020was planned , but it has been postpone to 13 - 15 October , 2020 .
COVID-19 crashed demandHopes for 2020 were high-pitched . " With the shortage of fertilizers , the showery weather condition that decreased the production of flush and the low prices on the auction , 2019 was not as proficient as 2018 . So , for 2020 , we had more hope . Despite the rainfall , we thought we would have a unspoilt Valentine ’s Day , going into Mother ’s Day . However , when coming out of Valentine ’s Day , in March , COVID-19 threw a spanner in the works . We lost demand in our major market , Europe . " Close to 75 percent of Kenya ’s yield goes to this continent . By the end of March , only 20 percent of the flower product left the country . " The demand for peak on the direct market as well as on the auction was very humbled ; we ’d never been at this point . "
Keeping the manufacture goingIn rescript to keep the diligence go , KFC encouraged the regime to keep the provision chain locomote . " The floral industry is Kenya ’s biggest industriousness after tea . So , fortunately , the government allow the farms to continue . They complied with all sanitary regulations and so far , no COVID-19 cases at any farm have been reported . Also , with limited KFC notch , the flowers could be brought to the airport without any delays . " However , not that much product went to the airport as requirement was so down . So , in order not to get the farm close their doors for unspoiled , many commit their seasonal workers home and their lasting workers on paid or unpaid farewell . " Around 85 percent of the 150,000 worker at the farm are permanent worker and none of them lost their job . " At the moment , farms are doing around 65 percent of what they were doing . In March , growers basically keep the crop , glean it and composting the unsold flower . In this way , growers can quickly rage up production when need starts to increase . "
The challenge of freight capacityAnd the demand started to increase in the first week of May . However , then freight capacity started to become a fully grown return . " By the second week of May , we needed 3,500 tons of capacity , but we only had 1,500 . As a lot of exporters stopped shipping , when the demand was so low-pitched , a lot of freight companies set off to look for a securities industry elsewhere as there were not enough prime to transport . Medical supplies became a major shipment for them and there were other countries that were willing to pay up a lot of money for it , so they left Nairobi . So the cost of the airlines that were uncoerced to take the bloom was three times high . "
as luck would have it , four week ago , in the tally - up to Mother ’s Day , they saw a bit of melioration as a few other airlines came to support them for this holiday . " Prices were still more than double compared to the pre - COVID situation , but the industry was able to move a bit more flowers . Now , monetary value are still high and talks are going on with Kenya Airways , an airline that unremarkably only did passenger flights , but started to transport perishables during the COVID-19 crisis , to institute their costs down . " Last week , the government announce that they will support Kenya Airways with 1.5 billion Kenyan Shilling ( 15 million USD ) . "
" We need solutions now " - Still waiting for VAT refundsRegarding the government announcement , in general these announcements made by the government , do not reassure Tulezi . " In March , for example , the politics announce that they would give the growers the money of the VAT repayment , which they are entitled to receive back . And some raiser owe a spate of money from the government as they did not get the refunds for several long time . In totality , the government owes the growers 3.7 billion Kenyan Shillings ( around 35 million USD ) , but so far , the exporter have not been pay yet .
How to move on?According to Tulezi , it is crucial that the governance founder the exporting grower their VAT repayment , in other word , some cash to give them some chassis on their bone . " On top of that , we need to pull the airlines back and therefore we are babble with a lot of them to let them debate Kenya as a major business hub for fresh produce . We are after all among the top 3 producers of fresh product , with flower being the most exported items . " Fortunately , the flower industriousness is now going into the " low season " but already in 3 month , it is high time of year again , so thing need to move quickly . " We ’ve asked the government to allow passenger flights as soon as in other land this will be allowed . Then , as 40 percent of the fresh garden truck comes with rider escape , it will free up some space for cargo flights for bloom . "
Kenya is presently in fond lockdown and the government is planning to spread up slowly from June 6 .
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
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