Workers from Naivasha based Maridadi flower farm prepare roses for export ahead of Valentine Day when demand for the flowers is at its highest. [Antony Gitonga, Standard]
Kenya is looking to explore sea freight to increase exports volumes for cut flowers and fill the gaps left by air transportation. The Kenya Flower Council on Monday, May 30, 2022 signed a framework of Cooperation with the Dutch Embassy in Nairobi, to strengthen the flower value chain.
The Netherlands Ambassador to Kenya Maarten Brouwer together with Kenya Flower Council (KFC) have signed a letter of intent to work together to promote the logistical chain for horticultural products to be ferried through the sea, so that the flowers can arrive with a carbon footprint that is much lower.
“We support Kenya wherever we can, the producers, produce and find new varieties. We facilitate the process of getting the flowers as cheap as we can and in a sustainable and environmentally friendly way to the Netherlands,” said Brouwer.
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Brouwer spoke at the three-day International Flower Trade Expo (IFTEX) in Nairobi. The expo resumed after a three-year break following disruptions caused by the Covid-19 pandemic.
Based on the challenges faced with Covid-19, sea freight is seen as a sustainable solution. There is not enough capacity on air and on the other hand producers and consumers are looking at reducing carbon emissions. So sea freight is coming in to fill the gap.
Lower carbon footprint
“If we are not going to deliver on lowering the carbon footprint, consumers will have to rethink where to get their flowers,” said Brouwer.
Chief Administrative Secretary at the Ministry of Industrialisation, David Osiany said the horticulture export have in the last three years surpassed tea becoming the leading merchandise export for the country, out of which significantly 70 per cent was from the flower sub-sector.
The exports in the last three years grew from Sh107 billion to Sh110.8 billion. The export of horticulture products in 2020 were valued at Sh165.7 billion out of which Sh110.8 billion was from the flower sub-sector.
“The government is very keen on this sector because women are the majority. I wish to encourage all flower producers, especially large scale investors to continue supporting women by providing them with a conducive environment for work and deliberately invest in their health care,” said Osiany.
In 2021, there was a 22 per cent growth of the horticulture sector wholesomely. The cut flowers accounted for 69 per cent at Sh110 billion of the value of the entire horticultural export.
The sub-sector employs about 200,000 people directly and 500,000 people indirectly and having an impact on about five million Kenyans.
KFC Chief Executive Officer Clement Tulezi said sea freight is a welcomed solution to fill the gaps left by air freight. At the moment the gap is over 1,500 tonnes per week that they require and the air freight is not expanding.
“Therefore we have to look at alternatives, the easiest which is transporting of cut flowers and ornamentals through through the sea. Studies have been done around this and currently there are ongoing pilots,” said Tulezi.
At the moment, they are doing between 15 to 20 containers a week with a vision that by 2030, 50 per cent of the fresh produce will be exported by sea.
He said the calculation they have at the moment together with other players in the market is that by 2025, they should be at around 35 per cent.
“And if we are able to achieve that then we will know it is doable. It will be a game changer if it works,” said Tulezi.
At the moment the shortfall is more on the smaller exporters as the larger ones are able to lock in their capacity and continue exporting.
Big exporters are able to lock space that is why they can export, as for small exporters this is a challenge that is why they find it difficult to export all the produce.
“When I talk to my smaller exporters, they say that close to 20 per cent of their daily produce, they are not able to export as we speak. We are now in a low season where demand is slightly lower and that has helped us cushion some of them at the moment,” said Tulezi.
He added: “Soon the demand will go up again and that means we need more capacity. The quickest we can interest other freighters to come in, the better.”
At the moment they are at about 3,800 tonnes in terms of demand every week.
Freight charges are at $5.8 per kilo compared to Ethiopia who are at about $2.5 per kilo.
“Kenya Airways is trying much to help us but it is not enough, since they depend a lot on passenger flights,” he said.
With sea freight and with added capacity, they believe that the prices will go downwards. On Sea freight, charges are still at $5, but as volumes go up, the prices should come down, Tulezi said.
KFC is working to acquire new markets. The council is in talks with Malaysia and Saudi Arabia to open up space for Kenyan flowers. It is also in talks with importers in Dubai to set up a hub to import more volumes into the Middle East.
