Sylvie Mamias from Union Fleurs told the conference that her organization is involved in lobbying and advocacy on behalf of flower exporters, especially into the European Union. Her organization has worked with the Kenya Flower Council on the economic partnership agreement with the EU. She talked about the challenges and opportunities that exist for market diversification globally. She mentioned that whereas Kenyan flower producers have a competitive edge over their competitors in the region, there is still alot of room for diversification. She called for concerted efforts and constant dialogue between the industry players in order to understand the needs and requirements for getting into emerging markets, and the need to optimise the enabling environment for market diversification. She urged players to identify where potential growth markets are and to understand how they can best penetrate them.
Ms. Mercy Achola of Value Connect said Kenya can diversify its market for flowers in the Middle East, especially via Dubai, which is an economic hub and through which exporters can access two thirds of the world within 8 hours, and one third of the world population within four hours. “There are 200 nationalities living and working in Dubai and Dubai is well connected by sea, air and road. It has a population of 52 million people, and it is the gateway to the Middle East. Of the 52 million people, half of them are representatives of an expatriate community, who are high spending consumers and this is an opportunity that Kenyan flower exporters need to take advantage of,” she said.
Currently, the challenges exporters face are like a long documentation process, little cargo space and abrupt downgrading of aircrafts. She suggested that there needs to be a balance between how fast the documentation can be done and making sure that producers export flowers that meet international standards and quality. The flower industry also needs to approach the airlines as one, especially now that they have the Kenya Horticultural Council to speak for them.
Ms. Matthea Van der Mollen from Royal FloraHolland Kenya spoke about expanded market opportunities that are opening up in China because of its large population of young and working class. This is an opportunity for Kenyan flower exporters to diversify to the Far East. Her organization is helping to build a trade link from Kenya to three cities in China – Shanghai, Beijing and Guangzhou. Shanghai alone has a population of 24 million people, many of them already consuming flowers. Royal FloraHolland has discovered that more Chinese are buying flowers and other items online and this is something that exporters need to keep in mind as they seek to penetrate the Chinese market.
Exporters should focus on women ages 25 to 40, most of whom are the consumers of flowers. Challenges of handling, storage and logistics exist but Royal FloraHolland is working with other stakeholders to try and overcome these challenges. They estimate that by 2020, 200 million stems from Kenya and Ethiopia will be exported to China.
Mr. J.M Mandelbaum from Steward Ventures told the meeting that it is unfortunate that banks in Kenya ignore biologicals and don’t count them as collateral when they consider a farmer’s assets. He said that Steward Ventures is developing crop insurance in Kenya for flowers and they are also educating lenders about how they can use the crop insurance and the crop to bring comfortable lending for crop producers. He said they are working with lenders and lawyers in trying to de-risk lenders’ experience in cultivation and in trade. He said that de-risking of flower value chain will create sustainability in the industry since it will remove the risks and uncertainties inherent in the flower industry in Kenya.
Mrs. Jane Ngige from KFC said that Kenyan flower producers have done very well in terms of exporting roses, having 40% of the European market share, what is the next crop after the roses in this country? She added that KFC has cultivated a new working relationship with the government, and with stakeholders in the civil society to make sure that the industry works in a more harmonious and in a sustainable manner.