Flower export dealers seek fresh markets in Japan, Asia
What you need to know:
- Kenya’s flower exports to its main market, the EU, in 2014 generated Sh54.6 billion.
- In 2010, earnings reported from rose flower exports to Japan stood at Sh574.56 million.
Kenyan flower exporters are now eyeing fresh markets in Asia in an effort to expand their market and improve their earnings.
Kenya Flower Council chief executive officer Jane Ngige says the council is betting on Japan, which has proven to be a strong market for roses from Kenya.
Data from the Japanese embassy indicate that Kenya’s earnings from exports to the country have risen in the past five years.
In 2010, earnings reported from rose flower exports to Japan stood at Sh574.56 million while in 2014 the earnings stood at Sh954.83 million, indicating a 66.2 per cent increase over four years.
By January this year, the earnings stood at Sh88.5 million, compared with Sh82.9 in January 2014. Kenya is exporting more flowers to Japan than its two major competitors — Ethiopia and Columbia — a sign of the market’s great potential.
“We are also eyeing the US market; and are looking to complement big-headed roses available in that market with a range of roses from Kenya,” Ms Ngige said.
SEVERAL HURDLES
Kenya’s flower exports to its main market, the European Union, in 2014 generated Sh54.6 billion, up from Sh46 billion recorded the previous year.
According to the council, Kenya supplies about a third of the cut-flowers sold in the EU market.
But last year the sector faced several hurdles when the East African Community missed the October deadline (from 2007) for signing of an Economic Partnership Agreement.
Kenya then lost its duty-free, quota-free status, costing EU importers of its goods levies of up to 8.5 per cent on value of exports.
“This is equivalent to Sh2.5 billion, or Sh630 million per month,” said Ms Ngige, adding: “We have therefore made a formal request to the government to provide a way of cushioning the industry.”
The country was reinstated to duty-free quota, free-status last December, but the council is yet to recover the losses accrued over that period.
According to the Kenya National Bureau of Statistics, the entire horticulture industry raked in about Sh84.08 billion last year, a slight rise from Sh83.08 billion recorded in 2013.
