The Ethiopian flower industry is flourishing, with the help of government incentives and low labor costs.

The country is now the second-largest flower exporter in Africa, with over 100 flower growers on 1,700 hectares (17, 000, 000 square meters or 182,986,477 square feet).

“We are now second in Africa only to Kenya, and we expect to overtake them soon,” Berhanu Ludamo, Promotion and Information Service Head of Ethiopian Horticulture Producers Exporters Association said.

“Ethiopia earned $250 million from horticulture export in 2014. The amount is expected to increase this year due to the expansion of horticulture farms.” Berhanu said. The area will grow to 3,000 hectares Fontana Flowers will begin operation of its horticulture farm in Ethiopia at the cost of 11 million dollars.

The company has leased a 100 ha land at Wenjeta and Wegelta kebeles 20 Km from Bahir Dar in the Amhara Regional State. Currently Fontana, which has hired 1,300 employees, is clearing land for growing roses and for warehouse construction. The company will exclusively grow different cut rose varieties. It will first start growing on 65 ha, with a target revenue of 95.9 million US$ a year.

Read More

Features International Joint Booths

A total of 20 countries have organised one or even several community booths at the IPM ESSEN – in all areas. Guatemala is a new participant exhibiting cut flowers, potted plants and perennials. China, France, the United Kingdom, India and Taiwan have expanded their booths. And there are additional national booths from Belgium, Costa Rica, Denmark, the Netherlands, Israel, Italy, Portugal, Poland, Spain, Sri Lanka, South Korea, Turkey, Hungary and the United States.

 

Belgium

Around 40 Flemish companies are participating in the Belgian joint exhibition, which includes three stands again in Halls 2 and 12. In Hall 2, the focus is on ornamental plants, laurels, azaleas, rhododendrons and young plants. In addition, there are local businesses specialising in young house plants, chrysanthemums, garden plants and perennials. The six companies in Hall 12 are displaying trees, woodland and hedge plants, roses and ornamental bushes. Flemish exhibitors have been well represented at the trade fair with a joint booth since the first IPM ESSEN. (Hall 2, booth 2B25 and 2D30; Hall 12, booth 12C15)

 

Read More

Airflo is a known and respected brand amongst Kenya’s flower growers. Will it soon disappear given Panalpina’s acquisition of the company?

Conrad: The new entity will be called Panalpina Airflo, so Kenya’s flower growers will still encounter the brand name, but more importantly they will still experience everything it stands for. Our customers will continue to receive the quality service that they are used to. In addition, they’ll also benefit from Panalpina’s global reach and expertise.

Colin: Conrad is right. Everything is being maintained—including more than 160 staff in Nairobi and Aalsmeer with their expertise and dedication. Airflo’s infrastructure, processes and attention to detail are also being preserved. Airflo’s legacy will definitely live on and Panalpina is bringing new ideas and people to the table.

 

What exactly do you mean by that?

Colin: A big benefit for customers is that Panalpina is great at connecting people and companies anywhere in the world, not just in Kenya and the Netherlands. Panalpina Airflo will help Kenyan growers to make the most of the worldwide opportunities available to them. The UK is an interesting market for example. The two companies combined can tailor-make solutions to fit individual customer needs for the UK. Together, we have a combined knowledge at product origin and product destination.

Conrad: Panalpina’s global reach and ability to network are definitely major advantages for our customers. Panalpina Airflo will bring different stakeholders to the table, in a way that is beneficial to everyone. We can connect growers with importers and exporters with growers. As one of the world’s biggest air freight users, Panalpina also has excellent relationships with the airlines. After all, Panalpina’s global annual airfreight volumes are many times those of Airflo.

 

Read More

“It’s all about the balance between continuity in the business and harmony in the family”

The strength of family business and its importance to an economy is widely praised. The family business is a success. But what about the ‘behind the scenes’ of all these success stories? What is ‘the real story’? Because where people work, there are strong emotions.

It seems that within the family, the emotional factor plays an even greater role than in a non-family business. Emotions can be a source of strength, but also a source of conflict. Why is one family business able to handle these emotions, whereas another family business becomes a victim of their emotions? In short: what is the psychology behind the family business?

Globally, 60% of companies are family businesses and in the flowers sector, the percentage is even higher. “We can, of course, address the issues that arise within families in a very substantive and technical way, but if we were to focus only on that, we would go wrong. Then you disregard the dynamics of a family business with its family bonds and emotions. Therefore, it is always an important skill when working with family businesses to find the balance between the continuity of the company and the harmony in the family.”

Read More

As new trends emerge, Kenyan farmers in the future will have to innovate continuously in order to remain competitive; the farmers will need to respond to the permanent pressure on margins, professionalism, increase demand and face growers in abroad countries with excellent farming techniques.

Koppert Biological Systems (K) Limited is one input supplier that is increasing partnerships and always carrying out research and investigations on the new, easy and highly effective farming methods that will enable farms to increase their yield while making their farming an enjoyable experience, priding itself in helping Kenyan farmers remain the leaders in the world markets.

This was revealed when Koppert Biological Systems (K) Ltd in partnership with Kenyatta University brought a team of professionals in different fields of the agriculture sector together in a Nairobi Hotel to discuss how to salvage the tomato production in Kenya. The workshop which marked the inception of Tomato ARF funded project was attended by researchers, academicians and scientists from the private sector, different universities, KARLO, KEPHIS, Ministry of Agriculture, Livestock and Fisheries among others. The workshop was also attended by large scale and small scale farmers drawn from different parts of the country. The workshop was an inception of a three year cross-sectional survey research project.

Read More

Everyone around the world knows the tender feel and sweet smell that comes when you get in contact with a flower. Maintaining the quality of these gentle plants that bring color to our lives is an important aspect in all in the flower business. Kenya’s Floriculture Industry has currently embraced the importance of post harvest. A shift is noticeable from the perception that quality is only achieved from the field, with the current thinking being the need to maintain the quality even after harvest’ which is helping farmers have a higher bidding price at the market level. Losses at the post-harvest chain are more severe because they represent waste/loss of human effort, farm inputs and all other resources involved during production.

Losses in postharvest range from 5 – 60% with occasionally losses at 100%, for example due to Botrytis Cinerea infection during the rainy season.

There are some 50 species of the fungus Botrytis, however, Botrytis cinerea has the largest host range. Botrytis is often referred to as gray-mold because it produces a crop of gray fuzzy-appearing spores on the surface of infected tissues. Several days of cool, cloudy or rainy weather creates an ideal environment for Botryis infections during production in a full greenhouse or out in the field. However this fungus grows on dead or dying plant tissue anywhere conditions are right; in greenhouses, the field, packing sheds, coolers or during shipping.

 

Read More

A sigh of expectation filled the air as one of the biggest chemical companies in the world, BASF, launched an innovative fungicide that combines well known active ingredient Dimethomorph with Initium to form a preventive shield against downy mildew in ornamentals.

Time almost audio recorded voice of Mr. Patrick Ngugi, Country Manager-Kenya, Crop Protection and public health asked, “Are you afraid of Downy mildew in your farm? Are you concerned by the ever increasing threat of resistance build up by fungicides? Are you afraid of scotching your flowers and leaving physical residue? Are you concerned about the cost of your choice product? Can you achieve your goals in farming without IPM? Is worker safety a priority for you? Each of the question received a resourcing ‘Yes’ from the over 150 growers in attendance. Today I stand in front you to offer your solution, Orvego 525 sc.

Read More

How the Kenyan flower industry thrives in the absence of formal contracts. Based on the research of Rocco Macchiavello and Ameet Morjaria.

Yevgenia Nayberg

Operating a business in a developing country is not always for the faint of heart. But new research suggests that long-term relationships between buyers and sellers can go a long way toward overcoming obstacles like political instability and weak governing institutions.

 

To build his case, Ameet Morjaria, an assistant professor of managerial economics and decision sciences at the Kellogg School, turned to the rose trade in Kenya—a thriving industry that he says has “managed to set up a supply line to the developed world. And they’ve achieved this in a relatively short period.”

 

Just how healthy is the rose industry in Kenya? Today, an estimated 500,000 Kenyans on over 100 flower farms depend on the trade for their livelihood. The nation’s flower exports have grown from about 11,000 tons in 1988 to more than 136,000 tons in 2014, making Kenya the third-largest exporter of cut flowers in the world. Many of these flowers head to the European Union, where they account for about a third of all flower sales.

 

The rose trade’s rapid growth has been driven by Kenya’s sunny climate, low labor costs, and strong air-transportation links to Europe. And this has all been done in the absence of formal contracts. Since flowers are highly fragile and perishable, contracts would be unenforceable, with buyers and sellers making claims that no court could verify.

 

Read More